Southeast Asia Information Port News (www.dnyxxg.com) – The Office of the United States Trade Representative (USTR) announced on March 11th (US time) that it has initiated an investigation into manufacturing overcapacity issues with 16 major trading partners, including Singapore, under Section 301 of the Trade Act of 1974. In the investigation, the USTR accused Singapore of having a large trade surplus with the US in 2024. However, Singapore's Ministry of Trade and Industry issued a strong rebuttal in a statement on the evening of March 12th (Singapore time), clarifying that Singapore actually had a trade deficit with the US and had provided relevant information to the USTR and initiated clarification.
The USTR disclosed in the Federal Register that its statistics show Singapore achieved a total trade surplus of US$27 billion (approximately S$34.5 billion) in goods and services with the US in 2024. The USTR also pointed out that Singapore continued to expand its manufacturing capacity despite declining industrial occupancy rates, a situation included in this overcapacity investigation.
In response to the aforementioned allegations, Singapore's Ministry of Trade and Industry (MTI) refuted them by citing data from the U.S. Bureau of Economic Analysis (BEA): in 2024, Singapore had a goods trade deficit of US$1.7 billion and a services trade deficit of US$25.1 billion, totaling approximately US$27 billion, directly contradicting the USTR's conclusion of a trade surplus.
Regarding concerns about industrial capacity, the MTI further clarified that Singapore's industrial land occupancy rate has consistently remained at a stable and healthy level of approximately 90%, contrary to the USTR's claim of a "declining occupancy rate." "Singapore has scarce land resources, and the total amount of land available for industrial use has gradually decreased due to increased demand in other sectors; there is no situation of blindly expanding production," the MTI emphasized in a statement.
The MTI stated that it has proactively contacted the USTR regarding the discrepancies in trade data and the Section 301 investigation, submitting detailed supporting materials. It will continue to advance communication to clarify misunderstandings and ensure that the investigation is based on objective and accurate facts. (End)
