SINGAPORE – Singapore government representatives attended a webinar on enforcing forced labour import prohibitions, organised by the Office of the United States Trade Representative (USTR) on Sept 16.
The USTR said it convened representatives of over 50 trading partners that are “willing to combat the trade in goods made with forced labour through import prohibitions at their own borders”.
A Ministry of Trade and Industry spokesperson said the US shared its perspective on the design and enforcement of such import prohibitions.
“We continue to engage the USTR constructively,” said MTI, without identifying the officials who attended the webinar.
About a third of Singapore’s domestic exports to the US – worth about $9.5 billion annually – became subject to a 12.5 per cent tariff on July 24, along with dozens of other economies coming under 10 per cent or 12.5 per cent duties amid US allegations of forced labour.
Deputy Prime Minister Gan Kim Yong, who leads Singapore’s trade diplomacy efforts on US tariffs, earlier said that while Singapore will continue to seek lower tariffs, it will consider any steps carefully in response to the negotiations.
That is because Singapore is a major goods and services trading hub, with trade amounting to around $2.5 trillion each year, of which $1.4 trillion is in goods. Any import prohibition would have significant implications and would thus need to be carefully considered in consultation with our business community.
On Sept 8, Gan, who is also Minister for Trade and Industry (Trade), said there is no evidence that Singapore is involved in the trade of goods associated with forced labour, but a higher US tariff rate was imposed because it lacks a law prohibiting the importation of goods produced with forced labour.
Singapore has also not negotiated an Agreement on Reciprocal Trade (ART) with the US, which could have included such prohibitions along with other trade restrictions.
Gan said a new import restriction could mean substantial compliance costs for businesses arising from supply-chain due diligence, documentation, and investigations, particularly where production takes place outside Singapore and beyond its jurisdiction.
Such measures could also affect Singapore’s broader trade relationship with other partners, according to Gan.
The Singapore Business Federation said in July that any new regulatory requirements should be carefully studied in consultation with industry.
MTI said forced labour in complex and multi-tiered supply chains is a transnational issue that is most effectively addressed at source, and with international cooperation.
Singapore has consistently played a constructive role in advancing international labour standards to address the issue of forced labour.
“We will continue to work with the international community to develop measures against forced labour globally, including playing our part by taking enforcement actions if companies are found to have breached our domestic laws relating to forced labour practices,” the ministry said.
