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Ministry of Trade and Industry
3. Parliamentary replies

Written reply to PQ on Singapore’s engagements with US Trade Representative to prevent retaliatory tariffs on Singapore-produced sustainable aviation fuel

7 July 2026

Question:

Mr Dennis Tan Lip Fong: To ask the Deputy Prime Minister and Minister for Trade and Industry (a) what is the Ministry's assessment of the impact of the Clean Fuels Alliance America's testimony to the US Trade Representative (USTR) on 8 May 2026 characterising Singapore's renewable fuel production as having structural excess capacity; and (b) what specific diplomatic and trade engagements is the Ministry undertaking with the USTR to prevent retaliatory tariffs on Singapore-produced sustainable aviation fuel.

Written Answer by Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong

1.                  On 8 May 2026, Clean Fuel Alliance America (CFAA), a US trade association, alleged that overcapacity in the biofuels industries of Finland, Singapore and the Netherlands threatened US producers. This allegation was made at a public hearing as part of the United States Trade Representative's (USTR) investigation under Section 301 of the Trade Act of 1974 into the acts, policies, and practices of 16 economies, including Singapore, relating to structural excess capacity and production in manufacturing sectors.

2.                  Singapore's energy and chemicals industry, including biofuels, operates in a competitive global market. Singapore does not subsidise the cost of biofuel production. Singapore's production capacity and exports of biofuels are demand driven and producers price their products based on global commodity prices, feedstock costs, and prevailing market conditions. As a small and open economy, our manufacturing output cannot depend solely on domestic demand and would also need to serve the needs of overseas markets.

3.                  We should not speculate on the potential impact of the CFAA's testimony on the USTR's investigation, which is still ongoing. Singapore has constructively engaged the USTR throughout this process and highlighted that our economic policies are carefully designed not to distort market forces. We will continue to engage the USTR on this matter as necessary.

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