Towards freer trade

Business Times, Monday, 21 Nov 2011

What would be the advantages and disadvantages, if any of a Trans-Pacific Partnership free trade agreement for the Asia Pacific economies, and Singapore in particular? What should this pact include to make it work most effectively?

For the most part, the developments surrounding the Trans-Pacific Partnership free trade agreement are extremely positive for the business community at large. However some advantages may actually be double aged swords. For example, the removal of international trade barriers opens up domestic industries is to foreign competition, which may hamper the local industries from competing on the same level. Another downside is the FTAs may make the domestic market dependant on global imports such that a crisi in a significant trade partner country can directly affect the economy of the home country.

The countries considering joining the TPP should weigh all the pros and cons carefully as it is a major commitment with long-term, wide-reaching implications.

Ronald Lee
Managing Director
PrimeStaff Management Services Pte Ltd