Latest news with #FTAs
Business Times
10 hours ago
- Business
- Business Times
Trade deals offer limited value to Singapore manufacturing firms: Study
[SINGAPORE] Local manufacturing firms are not fully utilising Singapore's extensive network of free trade agreements (FTAs), citing a lack of applicable agreements for their traded goods and export volumes that are too small to meet requirements. This is according to a study by a group of researchers led by the Institute of Policy Studies (IPS) released on Tuesday (Jul 22). The study surveyed 2,356 firms across seven Asean countries for their sentiments on four areas: regulation and governance; automation and digitalisation; sustainability; and regional outlook. Sentiments on FTAs were gathered as part of issues under regulation and governance. The survey found that just 29.7 per cent of Singapore firms surveyed have secured a rules of origin (ROO) certificate under at least one trade agreement. An ROO certificate is a document that verifies a product's origin, determining whether it qualifies for preferential tariffs under an FTA. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Another 40.5 per cent of firms reported not knowing whether they have the certificate, while the remaining one third of firms do not have a ROO certificate. This suggests that there is an information gap that may suppress effective FTA usage, said the survey authors. Singapore has a network for 28 implemented FTAs. In contrast, the uptake rate was higher among manufacturing firms in Laos (49.2 per cent), Indonesia (47.8 per cent) and the Philippines (58 per cent). Meanwhile no Cambodian companies reported having an ROO certificate. Soo Yeon Kim, the study's principal investigator, suggested raising the minimum threshold requirements as well as consolidating trade agreements to encourage higher FTA utilisation. Singapore firms which did not pursue ROO certification identified a lack of relevant FTAs for their goods as their primary barrier. 'This is particularly salient for firms in the tertiary and quaternary sectors, where existing FTAs may not apply or are perceived to offer limited value,' said the researchers. Export volumes falling short of minimum thresholds emerged as the second most significant obstacle to ROO certification. The Asean Free Trade Area requires a minimum export value of US$200, while the Comprehensive and Progressive Trans-Pacific Partnership sets the bar at US$1,000. Additional deterrents included insufficient client demand for FTA benefits, uncertainty surrounding application procedures, and concerns about procedural complexity and costs. The challenges facing Singapore companies mirror those experienced elsewhere in the region, though with varying degrees of emphasis, said the researchers. Indonesian and Vietnamese firms, for instance, were worried about complicated procedures and low export volumes. Regional collaboration Firms were also asked about their experience with the Asean Economic Community (AEC), a 2015 initiative aimed at creating a single integrated market across the bloc's member states. While respondents generally reported positive outcomes from the AEC, they called for reforms to keep the framework relevant in today's rapidly evolving economic landscape. Singapore firms were the most vocal among companies across seven countries in suggesting that the AEC better address private sector needs, with 89 per cent agreeing that this reform is needed. Other suggestions included additional tax incentives for regional trade, greater opportunities for collaboration between firms within the same industry or of similar scale, and improved mobility for skilled workers across the region. On automation and digitalisation, the study found that 'the integration of automation is widespread but remains largely low-level' in Singapore. A majority of Singapore firms have automated just a quarter of their business processes, while none have achieved full automation. Most firms across other Asean countries similarly automated less than half of their business processes. Indonesia stands out as an outlier, boasting both the region's highest proportion of fully automated companies (13.1 per cent) and the largest share operating without any automation (36.2 per cent). Digital adoption On the digital front, just over half of Singapore companies have embraced digitalised service delivery through mobile applications, online ordering platforms and similar technologies. This reflects a 'clear preference for customer-facing technological upgrades,' the authors observed. The pattern holds across the region, with Vietnam recording a 50.5 per cent adoption rate for digitalised services and Malaysia close behind at 47 per cent. Advanced technologies such as robotics and artificial intelligence see more cautious uptake. Around 21 per cent of Singapore firms deploy industrial robots while 19 per cent have adopted Artificial Intelligence or machine learning tools – but both figures still lead the regional pack. When it comes to sustainability initiatives, the study revealed that regulatory requirements and customer demands drive Singapore companies more than civil society pressure to adopt green practices. This trend appears consistent regionwide, with government-led regulation emerging as the most trusted and effective catalyst for promoting sustainable business practices. Singapore Manufacturing Federation president Lennon Tan noted that having a 'queen bee' customer – a major or influential client – is a significant motivation for companies to adopt environment, social and governance practices.
Indian Express
a day ago
- Business
- Indian Express
Tariff uncertainty continues: US team to visit India in mid-Aug, well after Aug 1 ‘hard deadline'
After Indian negotiators wrapped up another round of negotiations in Washington last week, a US team led by US Trade Representative for South and Central Asia Brendan Lynch is expected to visit India in mid-August to continue negotiations for a trade agreement, The Indian Express has learned. While India and the US have agreed on a wide range of tariff lines, the negotiations — which currently only involve market access for goods — are stuck over sensitive sectors such as agriculture and automobiles, which are key job creators in India. The new round of talks beyond the August 1 deadline comes amid growing suspense over whether India will face 26 per cent reciprocal tariffs starting August 1, as US Commerce Secretary Howard Lutnick on Sunday said that August 1 is a 'hard deadline' for countries to begin paying tariffs. 'That's a hard deadline, so on August 1, the new tariff rates will come in… Nothing stops countries from talking to us after August 1, but they're going to start paying the tariffs on August 1,' Lutnick said in a television interview on Sunday. Notably, President Donald Trump's deadline for implementation of reciprocal tariffs has shifted from April 1 to July 9, and now to August 1. While Trump has reiterated that a deal with India is close, India could face tariffs of up to 26 per cent if both countries fail to reach an agreement. Government officials have maintained that India is aiming to sign a bilateral trade agreement (BTA) by the end of the year, which would provide market access in labour-intensive sectors and ensure a significant tariff differential compared to its Asian peers. Lutnick also said that smaller countries — including those in Latin America, the Caribbean, and many in Africa — would face a baseline tariff of 10 per cent. 'The bigger economies will either open themselves up or they'll pay a fair tariff to America,' he said. Trade experts have pointed out that, despite being presented as trade 'agreements', Trump's deals do not meet WTO standards for Free Trade Agreements (FTAs). Under WTO rules, FTAs require mutual tariff reductions on a substantial share of trade. 'Under the Trump model, only the partner country lowers its Most-Favoured-Nation (MFN) tariffs, while the US makes no reciprocal cuts. Trump lacks Fast Track Trade Authority from Congress to reduce MFN tariffs. Instead, he's offering to roll back only the 'Liberation Day' tariffs imposed in April under emergency powers — tariffs that a US federal court has already ruled unlawful. The case is under appeal, but the legal basis remains fragile,' the think tank Global Trade Research Initiative (GTRI) said. For India, those April tariffs added a 26 per cent surcharge on top of normal US tariffs. Even if a deal is struck, Indian exports may still face a minimum 10 per cent additional levy, making it a pressured compromise, not a true partnership, GTRI said in a report.
Indian Express
2 days ago
- Business
- Indian Express
US trade policy: Aug 1 ‘hard deadline' for reciprocal tariffs, says Commerce Secretary Howard Lutnick
As India awaits an announcement on an interim trade deal with the US, Commerce Secretary Howard Lutnick on Sunday said that August 1 is a hard deadline for countries to begin paying tariffs, although the US will continue to engage with them afterwards. This comes after India and the US concluded a week-long round of trade negotiations aimed at finalising an interim trade deal, seen as crucial for India to avoid reciprocal tariffs and gain an edge over its Asian peers. 'That's a hard deadline, so on August 1, the new tariff rates will come in… Nothing stops countries from talking to us after August 1, but they're going to start paying the tariffs on August 1,' Lutnick said in a television interview on Sunday. Notably, President Donald Trump's deadline for reciprocal tariffs has shifted from April 2 to July 9, and now to August 1. While Trump has reiterated that a deal with India is close, India could face tariffs of up to 26 per cent if both countries fail to reach an agreement. Government officials have maintained that India is aiming to sign a bilateral trade agreement (BTA) by the end of the year, which would provide market access in labour-intensive sectors and ensure a significant tariff differential compared to its Asian peers. Lutnick further stated that smaller countries — including those in Latin America, the Caribbean, and many in Africa — would face a baseline tariff of 10 per cent. 'The bigger economies will either open themselves up or they'll pay a fair tariff to America,' he said. Meanwhile, trade experts have pointed out that, despite being presented as trade 'agreements,' Trump's deals do not meet WTO standards for Free Trade Agreements (FTAs). Under WTO rules, FTAs require mutual tariff reductions on a substantial share of trade. 'Under the Trump model, only the partner country lowers its Most-Favoured-Nation (MFN) tariffs, while the US makes no reciprocal cuts. Trump lacks Fast Track Trade Authority from Congress to reduce MFN tariffs. Instead, he's offering to roll back only the 'Liberation Day' tariffs imposed in April under emergency powers — tariffs that a US federal court has already ruled unlawful. The case is under appeal, but the legal basis remains fragile,' the think tank Global Trade Research Initiative (GTRI) said. For India, those April tariffs added a 26 per cent surcharge on top of normal US tariffs. Even if a deal is struck, Indian exports may still face a minimum 10 per cent additional levy, making it a pressured compromise, not a true partnership, GTRI said in a report.
Time of India
4 days ago
- Politics
- Time of India
Farm anger shifts, BJP no longer enemy No. 1?
Bathinda: The long-simmering anger of Punjab's farmer movement, previously directed at the BJP, appears to have redirected its focus towards the AAP govt, a pivot evident at an all-party meeting convened by the Punjab chapter of the Sanyukt Kisan Morcha (SKM). The saffron party was accorded equal footing with other political outfits. When questioned about the evolving relationship with the BJP, senior SKM leader Balbir Singh Rajewal offered an evasive response, stating, "It is also like others (aeh bhi doojia partian vargi hi hai)," hinting at a pragmatic shift. Sources suggest the BJP, drawing lessons from its past confrontations with the farming community, has adopted a conciliatory approach, publicly aligning itself with the SKM on several critical issues. During the meeting, BJP leaders Kewal Singh Dhillon and Subash Sharma declared their "rock-solid" support for farmers in opposing the state govt's proposed land pooling scheme. Dhillon asserted that it was devised by AAP's Delhi leadership with the intent to "loot farmers". Sharma elaborated on the BJP's existing opposition, citing meetings with the governor and various protests, and pledged support for any future farmer agitations. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like This Trend Is Changing Bridal Beauty vividtrendlab Undo The BJP also voiced strong opposition to Free Trade Agreements (FTAs) in the agriculture and dairy sectors. Sharma affirmed that no agreement detrimental to farmer interests would be signed and promised to raise the issue with Union commerce minister Piyush Goyal. Additionally, Punjab BJP leaders reiterated their firm stance against sharing the state's water with other regions, citing Punjab's lack of surplus water and emphasising the need for unity on the matter. This newfound camaraderie stands in stark contrast to the period following Sept 2020, when the BJP-led central govt introduced contentious farm laws. The SKM had then initiated a complete boycott of the BJP in Punjab, preventing leaders from holding public programmes for over a year and staging continuous protests at their residences. Even during previous farmer agitations, particularly for the legal right to minimum support price (MSP), the BJP remained the primary target of farmer ire. However, the handling of the recent protests at Shambhu and Khanauri borders by the AAP govt has seemingly shifted the focus of farmers. MSID:: 122764021 413 |
Bangkok Post
4 days ago
- Automotive
- Bangkok Post
Thailand considers excise tax hikes on imported EVs
The Ministry of Finance is studying the imposition of a higher excise tax on imported electric vehicles (EVs) that use a low proportion of local content. Electric pickup trucks in particular are being looked at by the Excise Department, said a ministry source who requested anonymity. Any increases would be part of a package being developed to support domestic investment in the electric pickup truck industry, According to the source, imported EVs from China that benefit from a zero import tariff may be subject to a higher excise tax if they contain zero local content or just a low level of local content. Thailand has a free trade agreement (FTA) with China, allowing many Chinese imports — including EVs — to enjoy zero import duty. This has created competitive imbalances with automakers from other countries who face import tariffs ranging from 40% to 80%. According to the source, the Excise Department is collaborating with the Board of Investment (BoI), which is working on measures to support the pickup truck industry. Importers who meet BoI conditions would be eligible for support. Speaking at the 'Unlocking Thailand's Future' conference on Thursday night, former premier Thaksin Shinawatra proposed the government impose a high excise tax on imported EVs that use a low proportion of local content. He said FTAs with some countries that enjoy zero import tariffs on EVs negatively affect the ecosystem of the domestic automotive industry. He did not name the countries. Using car seats made in Thailand was one example of the kind of local content foreign EV makers could source, he said. Thaksin also mentioned that promoting the use of EVs would help reduce pollution. Currently, Thailand imports 60 million litres of diesel a day, 25 million litres of gasoline and another 10 million litres of other types of fuel, equivalent to the output capacity of a 40,000-megawatt power plant. He also expressed support for Thailand to become a hub for green electricity. Producing 40,000MW of green electricity from solar energy for 24-hour power generation would require about 1.4 million rai of land. He said Thailand has sufficient land to make this possible, and that the Electricity Generating Authority of Thailand (Egat) could undertake this initiative by establishing a separate division, or a 'Green Egat'.
