As a small and open economy with a high reliance on trade, Singapore is a strong supporter of an open and rules-based multilateral trading system that is embodied by the World Trade Organisation (WTO). The 166-Member WTO is the primary forum for global trade liberalisation, including the removal of tariffs and non-tariff barriers. We are a founding Member of the WTO since its creation on 1 January 1995. We were also privileged to host the 1 WTO Ministerial Conference (MC1) in December 1996, which is a biennial gathering of WTO Members’ Trade Ministers.
Singapore at the WTO
Singapore is an active WTO Member and a party to major WTO agreements such as the Information Technology Agreement, Government Procurement Agreement, as well as the Trade Facilitation Agreement.
Singapore also participates in plurilateral initiatives, to ensure the WTO stays relevant and updated. Notably, . Singapore, with Australia and Japan, co-convenes the Joint Statement Initiative (JSI) on E-Commerce which seeks to develop the first-ever set of comprehensive rules on e-commerce at the WTO. 91 WTO members accounting for over 90 percent of global trade participate in the JSI. The JSI, when concluded, will bring strong commercial value for governments, businesses and consumers by helping participants integrate into the fast growing global digital economy, reap the benefits of digital trade and foster interoperability and predictability.
In addition to the JSI on E-Commerce, Singapore participates in the Joint Initiative on Services Domestic Regulation (SDR) that aims to enhance transparency and predictability of authorisation procedures to reduce the costs of doing business and facilitate international services trade. Singapore is also a party to the Investment Facilitation for Development Agreement (IFDA) which aims to create clear and consistent global standards to improve the investment and business climate, and make it easier for investors in all sectors of the economy to invest, conduct their day-to-day business and expand their operations.
These initiatives collectively strengthen the multilateral trading system by facilitating rule-making on emerging issues with impacts on international trade. In turn, Singapore companies can benefit from greater stability, predictability, and a conducive business and investment environment that would enable them to operate more efficiently and effectively in global markets.
WTO’s Dispute Settlement System
The WTO’s multilateral framework of rules and avenues for recourse are key reasons why Singapore regards the WTO as crucial. Against a backdrop of rising trade tensions and a spike in protectionist measures, a fully functioning two-stage dispute settlement system is paramount to ensuring Singapore’s and all WTO Members’ trade interests. Singapore has expressed serious concerns over the impasse on appointments to the Appellate Body (AB). We remain committed to working with other WTO Members and reaching a solution to the impasse. As an interim solution, Singapore partnered with several WTO Members to establish the Multi-Party Interim Appeal Arbitration Arrangement (MPIA) in April 2020. Until the AB is re-constituted, the MPIA will ensure that participating WTO Members will continue to benefit from an appeals stage in WTO dispute settlements. The MPIA currently consists of 26 WTO Members[1] including Singapore. It was operationalised on 31 July 2020 with the finalisation of its pool of 10 arbitrators[2].
More information can be found on the official WTO website.
[1] Australia, Benin, Brazil, Canada, Chile, China, Colombia, Costa Rica, Ecuador, European Union, Guatemala, Hong Kong (China), Iceland, Japan, Macao (China), Mexico, Montenegro, New Zealand, Nicaragua, Norway, Pakistan, Peru, the Philippines, Singapore, Switzerland, Ukraine, and Uruguay.
[2] José Alfredo Graça Lima (Brazil) Valerie Hughes (Canada), Alejandro Jara (Chile), Guohua Yang (China), Claudia Orozco (Colombia), Joost Pauwelyn (EU), Mateo Diego-Fernandez Andrade (Mexico), Penelope Ridings (New Zealand), Locknie Hsu (Singapore), and Thomas Cottier (Switzerland).