Japan-Singapore Economic Agreement for a New Age Partnership
- Joint Study Group Report -

BACKGROUND

1. On 8 December 1999, the then Prime Minister of Japan His Excellency Keizo Obuchi and the Prime Minister of Singapore His Excellency Goh Chok Tong decided that a joint study should be conducted to examine the feasibility and desirability of establishing a Free Trade Agreement (FTA) between the two countries.

2. A 25-member Japan-Singapore Free Trade Agreement (JSFTA) Joint Study Group comprising government officials, prominent academics and business leaders from Japan and Singapore, was formed subsequently. The terms of reference of the Joint Study Group were as follows.

1. The Joint Study Group would examine the feasibility and desirability of establishing a FTA between Japan and Singapore.
2. The Joint Study Group would examine the feasibility and desirability of establishing a FTA between Japan and Singapore.
   1. the architecture - including the scope - of the FTA. In discussing the scope of the FTA, the Joint Study Group would examine both the traditional areas of liberalisation of trade in goods and services and of investment, as well as bilateral cooperation in other areas, with a view towards establishing a "New-Age" FTA;
   2. the requirements that such a FTA would have to meet if it is to be consistent with World Trade Organisation (WTO) rules;
   3. the flexibility which might be required for either country to take into account sensitive areas and other difficulties including the possible exclusion of sensitive items in such areas as agriculture, forestry and fishery sectors; and
   4. the strategic and economic benefits that both Japan and Singapore could derive from the establishment of such a FTA.
3. The Joint Study Group would meet alternately in Japan and Singapore. The host country would provide the secretariat support for the meetings. In between the meetings, the Joint Study Group would continue to progress the study through correspondence.
4. The Joint Study Group would complete its work within six months of its first meeting. It would submit a joint report to the Prime Ministers of both countries at the end of the study. The joint report would contain recommendations as to whether both countries should proceed to negotiate a FTA.
5. The Joint Study Group would also issue a joint public statement on the results of its study.

3. The Joint Study Group met five times from March to September 2000. The meetings were conducted in an atmosphere of warmth and friendship. The discussions were candid, insightful and constructive, contributing significantly to the mutual understanding of each other's economic policies and practices. More importantly, the Joint Study Group meetings have provided a forum for both countries to explore mutually beneficial new ways to improve existing economic linkages and integration.

4. This report contains the salient points and conclusions of the discussions of the Joint Study Group. Section One [PDF] provides an overview of the current global trend towards greater regional integration. The main part of the report, Section Two [PDF], focuses on the possible scope of a JSFTA. This is divided into 3 parts: (a) trade and investment liberalisation and facilitation; (b) cooperation in the growth sectors of the future; and (c) consultation and dispute settlement. Section Three [PDF] describes the economic, strategic and other benefits that Japan and Singapore can expect to derive from a bilateral FTA. The conclusions and recommendations of the Joint Study Group are in Section Four [PDF].

MEMBERS OF THE JOINT STUDY GROUP

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