SINGAPORE'S TRADE WITH THE UNITED STATES AND EUROPEAN ECONOMIC COMMUNITY : SOME RECENT DEVELOPMENTS

Abstract

The purpose of this academic exercise is to study the recent developments in Singapore's exports to the United States and the European Community and to draw out policy implications and future trends. Chapter One looks into the importance of external trade for Singapore's economic survival and also provides an overview of Singapore's major trading partners. The importance of the external trade to her economic survival stems mainly from her insufficient domestic market to absorb her production, forcing her to turn to the world market. Because of her dependence on the external market, she is vulnerable to the economic conditions of the world, particularly those of her major trading partners. Chapter Two focuses upon the trade policies of the United States and the European Community. This is to provide the foundation for our discussion of Singapore's exports to these two markets. A brief review of the historical development of the trade policies of the two markets and the effects of these policies on the developing countries, Singapore in particular, are highlighted. Chapter Three uses Chapter Two as a foundation to study Singapore's trade pattern with the United States and the European Community. Besides examining the raw data for exports to the US and EC, econometric analysis is also employed to analyse the changes in Singapore's trade pattern and the implication on policies and future trends. Chapter Four looks at the current problems faced by Singapore's exporters exporting to the US and EC based on a questionnaire survey conducted in early June. Possible solutions are also suggested in this chapter.