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Singapore negotiates US chips access, seeks pharmaceutical tariff concessions

Washington says it’s keen to explore ‘creative solutions’ on trade with the city state, whose deputy PM has touted progress in talks

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The Singapore flag flies against the skyline of the city state’s financial district. Singapore faces a 10 per cent levy from the US despite a bilateral free trade agreement. Photo: EPA-EFE
Reuters
Singapore is negotiating concessions for pharmaceutical exports to the United States while ensuring it still has access to high-end AI chips from the American market, according to the city state’s Trade and Deputy Prime Minister Gan Kim Yong.
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Gan had a call with US Secretary of Commerce Howard Lutnick on Friday and Lutnick expressed concern about export controls of chips “not just to Singapore, but generally” and wanted to explore “creative solutions” to strengthen bilateral trade, according to a transcript published by the trade ministry on Sunday.

“We took the opportunity to explain to Secretary Lutnick about Singapore’s export control system and how we have been working together with the US counterparts in this area, to the extent that our law permits,” Gan said.

Singapore’s Deputy Prime Minister and Minister of Trade and Industry Gan Kim Yong (right) looks on during a meeting of the city stat’es task force on US tariffs earlier this month. Photo: Reuters
Singapore’s Deputy Prime Minister and Minister of Trade and Industry Gan Kim Yong (right) looks on during a meeting of the city stat’es task force on US tariffs earlier this month. Photo: Reuters

Gan added that Singapore did not condone companies taking advantage of their presence in Singapore to undermine US export controls.

Pharmaceuticals, which US President Donald Trump has threatened tariffs on, make up more than 10 per cent of Singapore’s exports to the US and it was important for Singapore to seek concessions on this front, Gan said.

“I think these two areas are very important and it is something that we are very happy to see there is progress being made in our discussion between Singapore and the US,” said Gan, stressing that it was “not a done deal yet”.

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