SINGAPORE: Singapore's Ministry of Trade and Industry (MTI) said on Thursday (Mar 12) the country runs a trade deficit with the United States, and not a trade surplus, after Washington launched a trade investigation into excess industrial capacity in 16 major trading partners.
Singapore, as well as Taiwan, Vietnam, Thailand and Malaysia, are among the 16 economies named in the probe launched by the Office of the United States Trade Representative (USTR).
US Trade Representative Jamieson Greer said that the "Section 301" unfair trade practices investigation could lead to new tariffs imposed against China, the European Union, India, Japan, South Korea and Mexico by this summer.
MTI said in a statement: "In the office of the USTR’s Federal Register Notice, Singapore is highlighted as having a bilateral trade surplus with the US in both goods and services amounting to US$27 billion in 2024.
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"On the contrary, according to US Bureau of Economic Analysis data, Singapore had a bilateral goods trade deficit of US$1.7 billion and a services trade deficit of US$25.1 billion with the US in 2024, amounting to a total trade deficit with the US of about US$27 billion."
MTI said that the notice also suggested that Singapore has "continued to expand manufacturing capacity despite a drop in industrial occupancy rates.
"In fact, Singapore’s industrial space occupancy rates are very healthy at around 90 per cent and have been consistently so. Land is a scarce resource in Singapore and the amount of land set aside for industrial use has decreased over time due to other land use needs," the ministry added.
MTI noted that it has provided the USTR with this information.
It will also be engaging its US counterpart to seek further clarification on the trade data and on the Section 301 probe.
"We will provide further updates when available," said the ministry.
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Singapore, as well as Taiwan, Vietnam, Thailand and Malaysia, are among the 16 economies named in the probe launched by the Office of the United States Trade Representative (USTR).
US Trade Representative Jamieson Greer said that the "Section 301" unfair trade practices investigation could lead to new tariffs imposed against China, the European Union, India, Japan, South Korea and Mexico by this summer.
MTI said in a statement: "In the office of the USTR’s Federal Register Notice, Singapore is highlighted as having a bilateral trade surplus with the US in both goods and services amounting to US$27 billion in 2024.
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Show More Show Less
"On the contrary, according to US Bureau of Economic Analysis data, Singapore had a bilateral goods trade deficit of US$1.7 billion and a services trade deficit of US$25.1 billion with the US in 2024, amounting to a total trade deficit with the US of about US$27 billion."
MTI said that the notice also suggested that Singapore has "continued to expand manufacturing capacity despite a drop in industrial occupancy rates.
"In fact, Singapore’s industrial space occupancy rates are very healthy at around 90 per cent and have been consistently so. Land is a scarce resource in Singapore and the amount of land set aside for industrial use has decreased over time due to other land use needs," the ministry added.
MTI noted that it has provided the USTR with this information.
It will also be engaging its US counterpart to seek further clarification on the trade data and on the Section 301 probe.
"We will provide further updates when available," said the ministry.
Continue reading...