WRITTEN QUESTION E-1112/02

by Richard Corbett (PSE) to the Commission

(18 April 2002)

Subject: Trade relations (USA, Singapore and the EU)

Is the Commission aware of the state of negotiations between Singapore and the USA to establish a Free Trade Agreement between the two countries?

Has it considered whether the EU should similarly negotiate an agreement with Singapore in order to ensure equality between Europe and America with regard to access to the Singapore market?

Given the impossibility of a FTA between ASEAN and the EU, does it consider that a FTA with Singapore alone would be feasible?

Answer given by Mr Lamy on behalf of the Commission

(27 May 2002)

The priority for Union attention and resources remains the multilateral negotiations in the World Trade Organisation (WTO) under the Doha Development Agenda.

The Commission, nevertheless, follows closely and with interest the development of various regional economic integration initiatives currently taking place within East Asia, including the Free Trade Area (FTA) negotiations which Singapore has concluded with Japan, New Zealand, and European Free Trade Association (EFTA), and is pursuing with Australia, Canada, the United States and Mexico.

Singapore has also made a proposal to enter into negotiations on an FTA with the Union which the Commission is currently examining, and on which it would be interested to know the views of all interested parties in the Union. Singapore has suggested that an Union-Singapore agreement would both further develop the Union's relationship with Singapore and promote improved relations with other countries in the region. As the Union is interested in fostering closer economic co-operation with Singapore, but also with the region as a whole, such an initiative would need to support increasing regional integration on the Asian side and improve overall Union ties with the Association of South East Asian Nations (ASEAN).

In examining Singapore's proposal, the Commission will also consider whether a convincing economic case can be made. A consultation will be carried out with the private sector in the Union, and with any other parties declaring an interest, in order to establish their views on the best way to develop relations with Singapore and ASEAN. Other avenues besides a Free Trade Agreement such as developing more effective co-operation on regulatory issues will also be examined.