The Japan-Singapore “New Age” Economic Partnership Agreement: Background, Motivation and Implications

Abstract

Free Trade Pacts have become an integral part of Singapore’s new commercial trade strategy which in turn is the cornerstone of the city-state’s larger international economic policy. Such trade pacts appear to be increasingly regarded by policymakers as effective and expeditious instruments for achieving trade liberalization among “like minded” trading partners. Of particular relevance is the Japan-Singapore pact which has recently been agreed to and is in the process of being implemented. The trade pact has been termed the Japan-Singapore Economic Partnership Agreement (JSEPA). This paper discusses the extent of the two countries’ bilateral economic linkages in terms of merchandise trade and trade in services and investments and examines available details of the JSEPA.