3 Reasons Why Singapore Will Not Go Against America
The rise in conflict between China and the US is claiming the peace of many Asian countries. The US President Donald Trump has targeted the Chinese for their unfavorable trade balances and currency manipulation. The talks of levying heavy taxes on their products and pulling out manufacturing units from China has create bitter tension between the two giant economies. Which are expected to go into loggerheads with new trade policies on both ends.
Now that the US has pulled out of the TPP, China and the US have come into direct conflict and many smaller Asian nations must choose sides. While China is being threaten with the possible enactment of a Border Adjustment Tax and loss of manufacturing units, the US remains content and sure about its policies. Singapore is one such economy that must choose between a favorable America and a neighboring China. Even though China is not a part of the TPP, it withdrawal from the pact shows America’s willingness to let go of old trade agreements and pave a way for trade that swings more to the American side.
Singapore will like to stay in America’s good books. Here are 3 reasons why Singapore won’t go against America.
PM Lee doesn’t believe America has abandoned Asia
According to PM Lee, America did disappoint by withdrawing from the TPP. However, it has not abandoned Asia completely. He said that Washington and Singapore have a ‘very deep relationship’. He hinted that the country is keeping a close watch on the developments in Washington to find out what the country has in store for them.
US is the largest investor in Singapore
Singapore gets the largest chunk of its investment from the US. This is not all. US is also the biggest export market for the Singaporean economy. In the wake of these facts, it is very easy to find whose side Singapore will take if the tensions between China and the US give rise to an open conflict. Singapore is not interested in publicly siding with China as the growth of the country could be at stake. The country’s trade as well as defense is heavily dependent on the US and there is no chance that US will become a ‘former friend’.
Bilateral trade is still on
All the countries associated with the TPP still have the option of making bilateral trade associations with the US individually and make negotiations for the same. However, most of the nations believe that they need a free trade agreement to replace the TPP that will help in boosting these economies. In the case of Singapore, things will be relatively easy; because the US has vested interests here. Singapore will also not want to break ties with the US.
Singapore would not like to go into a conflict with America as it is in the best interests of the two countries to remain close, politically and at the economic front too.
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