Bush, Goh sign U.S.-Singapore free trade pact.

WASHINGTON, May 6 Kyodo

U.S. President George W. Bush and Singapore Prime Minister Goh Chok Tong on Tuesday signed a bilateral free-trade agreement, the first between the U.S. and an Asian country.

''This free-trade agreement will increase access to Singapore's dynamic markets for American exporters, services providers and investors,'' Bush said at the White House signing ceremony.

''Singapore is a nation that is small in size but large in influence,'' Bush said. ''With this agreement, Singapore becomes an even more valued economic partner of the United States.''

Bilateral trade between the United States and Singapore totaled nearly $40 billion in 2001. The U.S. was Singapore's second-largest trading partner, while Singapore was the 11th-largest U.S. trading partner.

Goh said the U.S.-Singapore free-trade pact, which he described as ''ambitious and comprehensive,'' serves as a model for future free-trade arrangements between the U.S. and other members of the Association of Southeast Asian Nations (ASEAN).

The Bush administration late last year launched the Enterprise for ASEAN Initiative to lay the groundwork for bilateral free-trade arrangements with ASEAN countries.

The U.S. and Singapore started their free-trade talks in November 2000 and announced last November that they had reached an agreement except for the issue of free transfer of capital. The two countries ironed out the capital transfer issue in January.

According to U.S. estimates, the elimination of duties on Singapore's exports to the U.S. would result in savings of $110 million annually for Singapore exporters and boost Singapore exports to the U.S. by 7% a year.

Singapore is the fifth U.S. free-trade partner, following Jordan, Israel, Mexico and Canada. Mexico and Canada are covered by the North American Free Trade Agreement.