On April 29, 2024, Singapore and the United States marked the 20th anniversary of their Free Trade Agreement (FTA), a significant milestone showcasing a tripling of bilateral trade from US$40 billion in 2003 to US$120 billion in 2022. Minister for Trade and Industry Gan Kim Yong highlighted that this FTA exemplifies how open and inclusive trading practices can yield mutual benefits, reinforcing the importance of a rules-based multilateral trading order.

The foundation for this agreement was laid during a meeting between former leaders Bill Clinton and Goh Chok Tong in November 2000, during a golf game in Brunei. Gan reflected on how this moment led to 11 rounds of negotiations over two years, culminating in the establishment of the USSFTA on January 1, 2004.

Historically, the need for closer economic ties was recognized even earlier, with then-President Ronald Reagan advocating for stronger links between the US and East Asia in 1983. This vision culminated in the USSFTA, which Gan described as a “bridge built at the right place, at the right time.” As the first FTA between the US and an Asia-Pacific country, it remains the only such agreement with an ASEAN nation.

The reception in Washington saw remarks from US Trade Representative Katherine Tai, who emphasized the enduring support for the partnership, as evidenced by the FTA’s strong congressional backing. Since its inception, the USSFTA has served as a framework for trade and investment, reversing a previous decline and significantly boosting economic interaction.

In 2022, Singapore was the US’s second-largest trading partner in Asia, with US investments in Singapore exceeding those in China, Japan, and South Korea combined. This underscores Singapore’s pivotal role in the Indo-Pacific region, with the bilateral trade relationship estimated to support approximately 250,000 jobs in the US.

As both nations look to the future, Gan expressed hope for continued economic cooperation in emerging sectors such as digital and green economies. Initiatives under the Partnership for Growth and Innovation (PGI) aim to foster collaboration in areas like advanced manufacturing and healthcare, positioning both countries to tackle new challenges together.

Gan and US Secretary of Commerce Gina Raimondo discussed enhancing supply chain resilience, particularly in the semiconductor sector, and supporting small businesses in the digital economy. The ongoing collaboration demonstrates a commitment to sustaining a vibrant economic partnership that prioritizes innovation and equitable growth for their communities.