Being strategically located, both nations are gateways to their respective regions, he says
By Lim Yan Liang, In Mexico City, The Straits Times, 22 Nov 2019
The strategic location of Singapore, near the centre of Asia, and Mexico, near the centre of the Americas, means that the two countries are gateways to their respective regions, and is why both should be "pathfinders of trade and commerce", Prime Minister Lee Hsien Loong has said.
This key similarity is why differences in language, culture, size and geography have not prevented Singapore and Mexico from stepping up exchanges in recent years, PM Lee said in an address to the Mexican Senate on Wednesday as part of his official visit here.
And in a globalised world where countries cooperate extensively with one another, a more integrated Asia-Pacific is in everyone's interest, he added.
PM Lee noted that Singapore and Mexico's similar histories as former colonies and centres of trade have resulted in compatible world views, and a natural instinct to be outward-looking and to connect with others in the world.
Historically, Mexico was also the catalyst for trade between Asia and the Americas, he said.
Spanish explorer Andres de Urdaneta's successful voyage from Manila in the Philippines to the port of Acapulco on the Pacific Coast of Mexico in 1565 opened up "Urdaneta's route", the world's first transoceanic shipping route.
"Manila Galleons would carry porcelain, silk, cotton, dyestuffs, spices and other goods from Asia to the Americas, and return to Asia with polished Mexican silver," said PM Lee. "This was a highly profitable venture: Fortunes were made on both sides of the Pacific, and one could argue that that was the first era of globalisation."
Trade today is no longer a seasonal endeavour but a round-the-clock one, with large container vessels having replaced the Manila Galleons, and transactions crossing land and sea instantaneously over optical fibre cables, PM Lee noted.
Significant growth in trans Pacific trade means the Americas are today a very important part of Asia's economic universe, and Singapore has substantial trade not only with the United States but also with Mexico and other North and South American countries, he said.
There are also many trading and investment opportunities in Asia waiting to be developed by Mexican businesses.
"A more integrated Asia-Pacific, with strong links between the two sides of the Pacific Ocean, gives countries an interest in each other's economic success," added PM Lee. "This fosters peace and prosperity, and benefits all countries."
PM Lee also said he was glad that both Mexico and Singapore are founding members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trade deal that covers 13.5 per cent of the global economy and a market of 495 million people.
The trade deal took effect for Singapore, Mexico and some other signatories on Dec 30 last year.
"It signals to our companies that our governments encourage and support their ventures in each other's countries," said PM Lee, who noted that Singapore investments in Mexico have increased every year in the past five years, exceeding $1.5 billion in 2017.
"I am confident that with the CPTPP in effect, our economic ties can only grow further."
While Singapore's engagement with Latin America and Mexico is robust, there is much more potential to be developed, said PM Lee, who is the first foreign head of government to address the Mexican Senate since President Andres Manuel Lopez Obrador came to office last December.
PM Lee's four-day visit to Mexico started on Sunday.
"In foreign relations, countries cannot choose our neighbours, but we can certainly choose our friends and partners, however far away they may be," he said.
"And I am happy that despite our geographical separation, Singapore and Mexico have chosen to be friends and partners with each other."
Senate president Monica Fernandez Balboa, who introduced PM Lee to the chambers, said Mexico is in favour of a comprehensive bilateral agenda that promotes greater business ties between the two nations, as well as the fostering of greater integration between countries on both sides of the Pacific.
"We express our deep will to continue collaborating with your country in order to build a more humane world that is attentive to social causes, solidarity, inclusion and justice," she added. "Mexico and Singapore both have a solid foundation and potential for this."
Senator Ricardo Monreal Avila, president of the Political Board of the Senate, said in a tweet that during his meeting with PM Lee, the two countries reaffirmed the strengthening of cooperation in areas such as economic and parliamentary ties.
By Lim Yan Liang, In Mexico City, The Straits Times, 22 Nov 2019
This key similarity is why differences in language, culture, size and geography have not prevented Singapore and Mexico from stepping up exchanges in recent years, PM Lee said in an address to the Mexican Senate on Wednesday as part of his official visit here.
And in a globalised world where countries cooperate extensively with one another, a more integrated Asia-Pacific is in everyone's interest, he added.
PM Lee noted that Singapore and Mexico's similar histories as former colonies and centres of trade have resulted in compatible world views, and a natural instinct to be outward-looking and to connect with others in the world.
Historically, Mexico was also the catalyst for trade between Asia and the Americas, he said.
Spanish explorer Andres de Urdaneta's successful voyage from Manila in the Philippines to the port of Acapulco on the Pacific Coast of Mexico in 1565 opened up "Urdaneta's route", the world's first transoceanic shipping route.
"Manila Galleons would carry porcelain, silk, cotton, dyestuffs, spices and other goods from Asia to the Americas, and return to Asia with polished Mexican silver," said PM Lee. "This was a highly profitable venture: Fortunes were made on both sides of the Pacific, and one could argue that that was the first era of globalisation."
Trade today is no longer a seasonal endeavour but a round-the-clock one, with large container vessels having replaced the Manila Galleons, and transactions crossing land and sea instantaneously over optical fibre cables, PM Lee noted.
Significant growth in trans Pacific trade means the Americas are today a very important part of Asia's economic universe, and Singapore has substantial trade not only with the United States but also with Mexico and other North and South American countries, he said.
There are also many trading and investment opportunities in Asia waiting to be developed by Mexican businesses.
"A more integrated Asia-Pacific, with strong links between the two sides of the Pacific Ocean, gives countries an interest in each other's economic success," added PM Lee. "This fosters peace and prosperity, and benefits all countries."
PM Lee also said he was glad that both Mexico and Singapore are founding members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trade deal that covers 13.5 per cent of the global economy and a market of 495 million people.
The trade deal took effect for Singapore, Mexico and some other signatories on Dec 30 last year.
"It signals to our companies that our governments encourage and support their ventures in each other's countries," said PM Lee, who noted that Singapore investments in Mexico have increased every year in the past five years, exceeding $1.5 billion in 2017.
"I am confident that with the CPTPP in effect, our economic ties can only grow further."
While Singapore's engagement with Latin America and Mexico is robust, there is much more potential to be developed, said PM Lee, who is the first foreign head of government to address the Mexican Senate since President Andres Manuel Lopez Obrador came to office last December.
PM Lee's four-day visit to Mexico started on Sunday.
"In foreign relations, countries cannot choose our neighbours, but we can certainly choose our friends and partners, however far away they may be," he said.
"And I am happy that despite our geographical separation, Singapore and Mexico have chosen to be friends and partners with each other."
Senate president Monica Fernandez Balboa, who introduced PM Lee to the chambers, said Mexico is in favour of a comprehensive bilateral agenda that promotes greater business ties between the two nations, as well as the fostering of greater integration between countries on both sides of the Pacific.
"We express our deep will to continue collaborating with your country in order to build a more humane world that is attentive to social causes, solidarity, inclusion and justice," she added. "Mexico and Singapore both have a solid foundation and potential for this."
Senator Ricardo Monreal Avila, president of the Political Board of the Senate, said in a tweet that during his meeting with PM Lee, the two countries reaffirmed the strengthening of cooperation in areas such as economic and parliamentary ties.
Singapore brand name has cachet even across the Pacific Ocean
By Lim Yan Liang, The Straits Times, 22 Nov 2019
MEXICO CITY • Singapore's reputation for competence and integrity is a valuable resource that has currency even across the Pacific Ocean, and is a competitive advantage in a world of growing protectionism and uncertainty, said Prime Minister Lee Hsien Loong on Wednesday.
Such goodwill is worth developing, and is why the Republic is pursuing a free trade agreement (FTA) with the Pacific Alliance countries of Chile, Colombia, Mexico and Peru, PM Lee told reporters at the conclusion of his four-day visit to Mexico.
While Singapore has existing trade agreements with Chile, Mexico and Peru, the Pacific Alliance-Singapore free trade agreement that could be concluded this year will pay a dividend in building links with Colombia, said Mr Lee.
More than two-thirds of the FTA text has been resolved, and Singapore is optimistic that the next round of negotiations slated to take place in Mexico in a few weeks will conclude the process.
"We will have to see how it's negotiated, but usually when you bring more parties together, there are opportunities for joint gains," PM Lee said.
Besides business interests, Mexico wants to collaborate with Singapore in areas such as logistics, urban planning and digital governance because Singapore is viewed as a reliable partner with a good reputation for delivering on what it sets out to do, he said.
Earlier in the day, PM Lee was hosted to lunch by Mexico's Secretary of Foreign Affairs Marcelo Ebrard, together with a group of governors from the states of Queretaro, Durango, Guanajuato, Oaxaca and San Luis Potosi.
PM Lee registered Singapore's interest to expand cooperation with the Mexican states and welcomed the growing cooperation in the areas of infrastructure, education and master-planning, the Prime Minister's Office said in a statement.
"(The governors) all want to bring in investments to develop their states, to link up with Asia, so I think there are opportunities for us to develop here in Mexico and the Pacific Alliance countries, (among which) there's a certain realisation of the need to work together and to look across the Pacific to Asia," he said.
In a ceremony in the afternoon, PM Lee was also presented with the Distinguished Guest of the City and Mayor Medal by Mexico City Mayor Claudia Sheinbaum. He invited Dr Sheinbaum to visit Singapore to attend the World Cities Summit Mayors Forum next year.
PM Lee said Mexico and Singapore's similar beginnings as trade hubs that drew immigrants seeking a better life are why the two countries are today cosmopolitan cities with rich cultures.
"Mexico City's renowned street food culture exemplifies this - your delicious tacos, quesadillas, tamales, empanadas and nachos bear influences from all over the world, including from Europe, Asia and Africa, and have travelled all over the world, carrying Mexican influence and soft power," he said.
Singapore hopes to inscribe its hawker food in Unesco's Representative List of the Intangible Cultural Heritage of Humanity, the way Mexico did for its traditional cuisine in 2010, he added.
"As you can see, we may be on opposite sides of the globe, separated by the vast Pacific Ocean, but we are actually quite similar in our outlooks," he said. "There are many areas we can cooperate on, and learn from each other."
By Lim Yan Liang, The Straits Times, 22 Nov 2019
Such goodwill is worth developing, and is why the Republic is pursuing a free trade agreement (FTA) with the Pacific Alliance countries of Chile, Colombia, Mexico and Peru, PM Lee told reporters at the conclusion of his four-day visit to Mexico.
While Singapore has existing trade agreements with Chile, Mexico and Peru, the Pacific Alliance-Singapore free trade agreement that could be concluded this year will pay a dividend in building links with Colombia, said Mr Lee.
More than two-thirds of the FTA text has been resolved, and Singapore is optimistic that the next round of negotiations slated to take place in Mexico in a few weeks will conclude the process.
"We will have to see how it's negotiated, but usually when you bring more parties together, there are opportunities for joint gains," PM Lee said.
Besides business interests, Mexico wants to collaborate with Singapore in areas such as logistics, urban planning and digital governance because Singapore is viewed as a reliable partner with a good reputation for delivering on what it sets out to do, he said.
Earlier in the day, PM Lee was hosted to lunch by Mexico's Secretary of Foreign Affairs Marcelo Ebrard, together with a group of governors from the states of Queretaro, Durango, Guanajuato, Oaxaca and San Luis Potosi.
PM Lee registered Singapore's interest to expand cooperation with the Mexican states and welcomed the growing cooperation in the areas of infrastructure, education and master-planning, the Prime Minister's Office said in a statement.
"(The governors) all want to bring in investments to develop their states, to link up with Asia, so I think there are opportunities for us to develop here in Mexico and the Pacific Alliance countries, (among which) there's a certain realisation of the need to work together and to look across the Pacific to Asia," he said.
In a ceremony in the afternoon, PM Lee was also presented with the Distinguished Guest of the City and Mayor Medal by Mexico City Mayor Claudia Sheinbaum. He invited Dr Sheinbaum to visit Singapore to attend the World Cities Summit Mayors Forum next year.
PM Lee said Mexico and Singapore's similar beginnings as trade hubs that drew immigrants seeking a better life are why the two countries are today cosmopolitan cities with rich cultures.
"Mexico City's renowned street food culture exemplifies this - your delicious tacos, quesadillas, tamales, empanadas and nachos bear influences from all over the world, including from Europe, Asia and Africa, and have travelled all over the world, carrying Mexican influence and soft power," he said.
Singapore hopes to inscribe its hawker food in Unesco's Representative List of the Intangible Cultural Heritage of Humanity, the way Mexico did for its traditional cuisine in 2010, he added.
"As you can see, we may be on opposite sides of the globe, separated by the vast Pacific Ocean, but we are actually quite similar in our outlooks," he said. "There are many areas we can cooperate on, and learn from each other."
Singapore and Mexico affirm growing ties, sign raft of new agreements
By Lim Yan Liang, The Straits Times, 21 Nov 2019
MEXICO CITY • Singapore and Mexico signed a series of new cooperation agreements on Tuesday that underscored the multifaceted nature of ties between the two countries.
Both pledged to conclude a region wide trade deal by this year.
Five Singapore agencies inked agreements with their respective Mexican counterparts following a meeting between Mexican President Andres Manuel Lopez Obrador and Prime Minister Lee Hsien Loong at the National Palace, where the two leaders welcomed the growing trade and investment cooperation between Mexico and Singapore.
Among these were agreements to promote greater cooperation in water resource management and closer partnership in science and technology cooperation, and a renewed deal to team up on international development and tackle transboundary issues such as pandemic outbreaks.
The agreements were signed after Mr Lee was welcomed in a ceremony and given a tour of the National Palace by President Lopez Obrador.
Both leaders also looked forward to the successful completion of negotiations for a free trade agreement between Singapore and the Pacific Alliance, and supported the intention of concluding the process this year, a joint statement said on Tuesday.
The Pacific Alliance is a grouping of four Latin American countries - Chile, Colombia, Mexico and Peru - which is collectively the eighth-largest economy in the world, accounting for more than 40 per cent of the gross domestic product of the 33 Latin American and Caribbean countries.
The statement said the leaders also underscored the importance of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, a high-standard agreement already in force among 11 countries, including Singapore and Mexico.
Trade and investment cooperation between Singapore and Mexico has grown in recent years, with bilateral trade last year amounting to $4.7 billion, making Mexico Singapore's second-largest trading partner in Latin America.
With Singapore and Mexico celebrating 45 years of diplomatic relations next year, both sides called for regular high-level political dialogue and more frequent and active exchanges between their respective ministries and agencies to grow bilateral ties.
Commemorative activities in the works for next year include a tie-up between the National Museum of Singapore and Mexico's National Institute of Anthropology and History on an exhibition of Mexican history, art and culture in Singapore in October.
By Lim Yan Liang, The Straits Times, 21 Nov 2019
MEXICO CITY • Singapore and Mexico signed a series of new cooperation agreements on Tuesday that underscored the multifaceted nature of ties between the two countries.
Both pledged to conclude a region wide trade deal by this year.
Five Singapore agencies inked agreements with their respective Mexican counterparts following a meeting between Mexican President Andres Manuel Lopez Obrador and Prime Minister Lee Hsien Loong at the National Palace, where the two leaders welcomed the growing trade and investment cooperation between Mexico and Singapore.
Among these were agreements to promote greater cooperation in water resource management and closer partnership in science and technology cooperation, and a renewed deal to team up on international development and tackle transboundary issues such as pandemic outbreaks.
The agreements were signed after Mr Lee was welcomed in a ceremony and given a tour of the National Palace by President Lopez Obrador.
Both leaders also looked forward to the successful completion of negotiations for a free trade agreement between Singapore and the Pacific Alliance, and supported the intention of concluding the process this year, a joint statement said on Tuesday.
The Pacific Alliance is a grouping of four Latin American countries - Chile, Colombia, Mexico and Peru - which is collectively the eighth-largest economy in the world, accounting for more than 40 per cent of the gross domestic product of the 33 Latin American and Caribbean countries.
The statement said the leaders also underscored the importance of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, a high-standard agreement already in force among 11 countries, including Singapore and Mexico.
Trade and investment cooperation between Singapore and Mexico has grown in recent years, with bilateral trade last year amounting to $4.7 billion, making Mexico Singapore's second-largest trading partner in Latin America.
With Singapore and Mexico celebrating 45 years of diplomatic relations next year, both sides called for regular high-level political dialogue and more frequent and active exchanges between their respective ministries and agencies to grow bilateral ties.
Commemorative activities in the works for next year include a tie-up between the National Museum of Singapore and Mexico's National Institute of Anthropology and History on an exhibition of Mexican history, art and culture in Singapore in October.
Rising Asia needs diverse partners and market access to continue to prosper: PM Lee Hsien Loong
Access to global markets will help continent to continue to prosper
By Lim Yan Liang In Mexico City, The Straits Times, 21 Nov 2019
The growing importance of Asia in the world economy should not be a cause for worry, as Asia needs diverse partners and access to global markets to continue to prosper, Prime Minister Lee Hsien Loong has said.
Singapore's world view is there are opportunities around the world, which is why 16,000km and the Pacific Ocean are no impediment for cooperation with Mexico and the rest of Latin America, he added.
During a fireside chat with 250 Mexican business leaders on Tuesday, Mr Lee was asked if the "Asian Century" would lead to an Eastern Bloc of countries, and how other countries would factor in this geopolitical shift of power.
The Asian Century refers to the projected dominance of Asia in the world in the 21st century.
While the centre of gravity will continue to shift towards Asia, powered by the rise of China and India, Mr Lee said he does not see Asia becoming "the centre of the world" as the region needs outside markets, cooperation, and technology in order to prosper.
"If it closes in on itself, and we just say 'this is the Asian region, we are doing business with ourselves in Asia', well you won't starve, but I think you will miss out on many opportunities," he said.
"We will be the poorer for it, and so will be the world."
Despite a recent surge in insularity, many countries still want to cooperate - not just bilaterally but in larger groupings - because they know cooperation is win-win, said Mr Lee. He cited the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) mega trade deal which both Mexico and Singapore are party to, and the Regional Comprehensive Economic Partnership (RCEP) that is poised to be signed next year.
The CPTPP is a free trade agreement among Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. Once fully implemented, the 11 countries will form a trading bloc representing 495 million consumers and contributing 13.5 per cent of global GDP in total, or approximately US$13.5 trillion (S$18.3 trillion).
Covering a market of about two billion people and contributing one-third of global gross domestic product, or about US$25 trillion, the RCEP will link 15 Asia-Pacific countries - Australia, Brunei, Cambodia, China, Indonesia, Japan, South Korea, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, Thailand and Vietnam - and create the world's largest trading bloc.
In the absence of rules in the World Trade Organisation that would allow the world to move towards freer trade while accommodating more conservative countries, such willing groupings are the way forward, said Mr Lee.
"In your part of the world, you are doing the same: You have the Pacific Alliance with Colombia, Chile and Peru," he said. "Singapore is negotiating a free trade agreement with the Pacific Alliance, and I hope we'll be able to close it by the end of the year."
On the United States-China rift, Mr Lee said each of the world's two largest economies needs to make difficult adjustments as China grows in importance.
China needs to shift into its new position of influence and heft without overpressing its advantage, and in a way that leaves space for other countries to manoeuvre, he said.
There is also understandable pride that it has grown strong and has stood up, and that it will not allow itself to be trodden upon again.
"At the same time, you have to remind yourself neither will we do unto others what, unfortunately, we have suffered, and that is not a very easy line for any leader to take," said Mr Lee.
For the US, the difficulty is in learning to relinquish its position as the No. 1 economy in the world, and to choose to develop the relationship constructively, such as with new rules that will enable China to fit into the global system.
"But if the response is a defensive one, that this growth of a new player is a threat to America and we must make sure that they never become No. 1, and we must always be No. 1, I think that can only lead to a very troubled relationship, and it is an effort which cannot succeed," Mr Lee said.
Access to global markets will help continent to continue to prosper
By Lim Yan Liang In Mexico City, The Straits Times, 21 Nov 2019
Singapore's world view is there are opportunities around the world, which is why 16,000km and the Pacific Ocean are no impediment for cooperation with Mexico and the rest of Latin America, he added.
During a fireside chat with 250 Mexican business leaders on Tuesday, Mr Lee was asked if the "Asian Century" would lead to an Eastern Bloc of countries, and how other countries would factor in this geopolitical shift of power.
The Asian Century refers to the projected dominance of Asia in the world in the 21st century.
While the centre of gravity will continue to shift towards Asia, powered by the rise of China and India, Mr Lee said he does not see Asia becoming "the centre of the world" as the region needs outside markets, cooperation, and technology in order to prosper.
"If it closes in on itself, and we just say 'this is the Asian region, we are doing business with ourselves in Asia', well you won't starve, but I think you will miss out on many opportunities," he said.
"We will be the poorer for it, and so will be the world."
Despite a recent surge in insularity, many countries still want to cooperate - not just bilaterally but in larger groupings - because they know cooperation is win-win, said Mr Lee. He cited the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) mega trade deal which both Mexico and Singapore are party to, and the Regional Comprehensive Economic Partnership (RCEP) that is poised to be signed next year.
The CPTPP is a free trade agreement among Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. Once fully implemented, the 11 countries will form a trading bloc representing 495 million consumers and contributing 13.5 per cent of global GDP in total, or approximately US$13.5 trillion (S$18.3 trillion).
Covering a market of about two billion people and contributing one-third of global gross domestic product, or about US$25 trillion, the RCEP will link 15 Asia-Pacific countries - Australia, Brunei, Cambodia, China, Indonesia, Japan, South Korea, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, Thailand and Vietnam - and create the world's largest trading bloc.
In the absence of rules in the World Trade Organisation that would allow the world to move towards freer trade while accommodating more conservative countries, such willing groupings are the way forward, said Mr Lee.
"In your part of the world, you are doing the same: You have the Pacific Alliance with Colombia, Chile and Peru," he said. "Singapore is negotiating a free trade agreement with the Pacific Alliance, and I hope we'll be able to close it by the end of the year."
On the United States-China rift, Mr Lee said each of the world's two largest economies needs to make difficult adjustments as China grows in importance.
China needs to shift into its new position of influence and heft without overpressing its advantage, and in a way that leaves space for other countries to manoeuvre, he said.
There is also understandable pride that it has grown strong and has stood up, and that it will not allow itself to be trodden upon again.
"At the same time, you have to remind yourself neither will we do unto others what, unfortunately, we have suffered, and that is not a very easy line for any leader to take," said Mr Lee.
For the US, the difficulty is in learning to relinquish its position as the No. 1 economy in the world, and to choose to develop the relationship constructively, such as with new rules that will enable China to fit into the global system.
"But if the response is a defensive one, that this growth of a new player is a threat to America and we must make sure that they never become No. 1, and we must always be No. 1, I think that can only lead to a very troubled relationship, and it is an effort which cannot succeed," Mr Lee said.
Singapore and Mexico: Friends and partners from distant shores
The Straits Times, 22 Nov 2019
From ancient silver coins to the modern-day FTAs, much binds the two countries that can play valuable roles as regional pathfinders for trade and commerce, says Prime Minister Lee Hsien Loong in his address to the Mexican Senate on Wednesday. This is the edited excerpt of his speech.
It is a great honour for me to address the Senate of the Republic of Mexico. However, I am not the first Singaporean here. In 2017, our then Speaker of Parliament, Madam Halimah Yacob, had the honour of addressing the Senate. Madam Halimah is now the President of Singapore. In 2016, her predecessor, former president Tony Tan, also made a state visit to Mexico. He had several members in his parliamentary delegation who met some of the senators too.
Therefore, we have had several exchanges between our leaders in recent years. This is perhaps a little surprising, considering how far apart our countries are. Geographically, Singapore and Mexico are separated by the vast expanse of the Pacific Ocean.
In terms of size and population, Singapore is much smaller than Mexico. Our population is less than 5 per cent of yours. Our total land area is only about half the size of Mexico City. We speak different languages, and we have different cultures too.
Perhaps one reason for our growing relations is our similar histories and dispositions. We are both former colonies. Singapore was a British settlement, while Mexico was colonised by the Spanish for 300 years. Both were the centres of trade for our respective regions, Asia and the Americas. So our natural instinct is to be outward-looking and to connect to others in the world.
In fact, historically, trade between Asia and the Americas first flourished from Mexico.
THE SPANISH DOLLAR LINK
In 1565, Andres de Urdaneta, a Spanish explorer, successfully sailed from Manila in the Philippines to the great port of Acapulco. This unprecedented eastward crossing of the Pacific Ocean opened up "Urdaneta's route", which was the world's first transoceanic shipping route. "Manila Galleons" would carry porcelain, silk, cotton, dyestuffs, spices and other goods from Asia to the Americas, and return to Asia with polished Mexican silver.
This was a highly profitable venture. Fortunes were made on both sides of the Pacific. One could argue that that was the first era of globalisation.
Interestingly, Mexican-minted silver played a small but significant role in Singapore's own history.
Two hundred years ago this year, Sir Stamford Raffles, an Englishman, set up a trading post in Singapore. Singapore was then part of the Johor Sultanate. Raffles signed an agreement with a local Malay ruler, whom he recognised as the Sultan of Johor, in order to set up this trading post. In exchange, as part of the agreement, he paid the Sultan an allowance.
The allowance was not in British pounds, but in Spanish dollars, which were none other than Mexican silver. Spanish dollars circulated widely in our part of the world as a customary currency, and was one of the world's first globalised currencies.
Today, trade is no longer a seasonal endeavour, but round the year and round the clock. Ships are no longer reliant on trade winds. Large container vessels, carrying thousands of containers, have replaced the Manila Galleons. Financial transactions traverse land and sea over optical fibres, at the click of a mouse, with photons and electrons replacing precious metals.
In this globalised and integrated world, countries cooperate extensively with one another. Economies are especially closely linked with their neighbours in the same region.
In the Americas, you have the North American Free Trade Agreement (Nafta) and also Mercosur in South America. Nafta, which will soon become the United States-Mexico-Canada Free Trade Agreement, was one of the earliest multilateral free trade agreements (FTAs). It created one of the world's largest trading blocs by gross domestic product. Equally significant, it ushered in a new era of regional and bilateral trade agreements.
In Asia, Singapore is one of 10 members of the Association of South-east Asian Nations (Asean). Asean members have formed an economic community among ourselves, and our combined population is slightly larger than Nafta's. Recently, Asean made significant progress towards forming a Regional Comprehensive Economic Partnership (RCEP). This will be a broader FTA that brings Asean together with other major Asian economies, including China, Japan, South Korea, Australia and New Zealand.
Transpacific trade has grown significantly too. The Americas form a very important part of Asia's economic universe.
Singapore's biggest market in the Americas is the US, but we have substantial trade with Mexico and other North and South American economies too. In the other direction, Mexico's biggest trading partner in Asia is China (not surprisingly), but there are many other trading and investment opportunities in other Asian countries waiting to be developed by Mexican businesses.
Mexico and Singapore are both strategically located near the centres of our respective regions. As gateways to the countries around us, we can be pathfinders for trade and commerce. A more integrated Asia-Pacific, with strong links between the two sides of the Pacific Ocean, gives countries an interest in each other's economic success. This fosters peace and prosperity, and benefits all countries.
That is why I am glad that both Mexico and Singapore are founding members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
The CPTPP brings Asia and the Americas closer together, including both developed and developing countries. It had emerged from the earlier TPP negotiations, which included the same countries, plus the US. I am glad that Mexico stayed with the rest of the partners, after the US withdrew from the TPP, and the TPP became the CPTPP.
The CPTPP is effectively the first FTA between Singapore and Mexico. It signals to our companies that our governments encourage and support their ventures in each other's countries. There is significant interest among Singapore companies to collaborate with your private sector, including what President Andres Manuel Lopez Obrador calls artisanal microbusinesses, or small and medium-sized enterprises.
THE PACIFIC ALLIANCE
I have brought a business delegation with me on my trip, and they cover various sectors including infrastructure, logistics and technology. Singapore investments in Mexico have in fact increased every year for the past five years. I am confident that with the CPTPP in effect, our economic ties can only grow further.
Singapore is now negotiating an FTA with the Pacific Alliance (PA). The PA comprises some of the most dynamic economies in South America and Central America, including Mexico. Singapore was honoured to join as an observer state five years ago. We look forward to being an associate state of the PA via this FTA. Concluding this FTA will not only help us deepen our relationship with you in Mexico, but it will also enable Mexico and the PA countries to build deeper links with Asia, including Singapore. The last round of FTA negotiations in Bogota went well. More than two-thirds of the FTA have been resolved. The next and hopefully final round will take place here in Mexico City next month. I am optimistic that with Mexico's leadership and support, we will be able to conclude the agreement then.
Senators and Deputies, Singapore's engagement with Latin America and Mexico is robust. Yet there is much more potential waiting to be developed. Beyond an alignment of economic interest, our two countries and our leaders enjoy good relations, because of our compatible outlooks and approaches to the world.
In foreign relations, countries cannot choose our neighbours, but we can certainly choose our friends and partners, however far away they may be. And I am happy that despite our geographical separation, Singapore and Mexico have chosen to be friends and partners with each other. Long may our friendship grow and prosper!
Muchas gracias.
The Straits Times, 22 Nov 2019
From ancient silver coins to the modern-day FTAs, much binds the two countries that can play valuable roles as regional pathfinders for trade and commerce, says Prime Minister Lee Hsien Loong in his address to the Mexican Senate on Wednesday. This is the edited excerpt of his speech.
Therefore, we have had several exchanges between our leaders in recent years. This is perhaps a little surprising, considering how far apart our countries are. Geographically, Singapore and Mexico are separated by the vast expanse of the Pacific Ocean.
In terms of size and population, Singapore is much smaller than Mexico. Our population is less than 5 per cent of yours. Our total land area is only about half the size of Mexico City. We speak different languages, and we have different cultures too.
Perhaps one reason for our growing relations is our similar histories and dispositions. We are both former colonies. Singapore was a British settlement, while Mexico was colonised by the Spanish for 300 years. Both were the centres of trade for our respective regions, Asia and the Americas. So our natural instinct is to be outward-looking and to connect to others in the world.
In fact, historically, trade between Asia and the Americas first flourished from Mexico.
THE SPANISH DOLLAR LINK
In 1565, Andres de Urdaneta, a Spanish explorer, successfully sailed from Manila in the Philippines to the great port of Acapulco. This unprecedented eastward crossing of the Pacific Ocean opened up "Urdaneta's route", which was the world's first transoceanic shipping route. "Manila Galleons" would carry porcelain, silk, cotton, dyestuffs, spices and other goods from Asia to the Americas, and return to Asia with polished Mexican silver.
This was a highly profitable venture. Fortunes were made on both sides of the Pacific. One could argue that that was the first era of globalisation.
Interestingly, Mexican-minted silver played a small but significant role in Singapore's own history.
Two hundred years ago this year, Sir Stamford Raffles, an Englishman, set up a trading post in Singapore. Singapore was then part of the Johor Sultanate. Raffles signed an agreement with a local Malay ruler, whom he recognised as the Sultan of Johor, in order to set up this trading post. In exchange, as part of the agreement, he paid the Sultan an allowance.
The allowance was not in British pounds, but in Spanish dollars, which were none other than Mexican silver. Spanish dollars circulated widely in our part of the world as a customary currency, and was one of the world's first globalised currencies.
Today, trade is no longer a seasonal endeavour, but round the year and round the clock. Ships are no longer reliant on trade winds. Large container vessels, carrying thousands of containers, have replaced the Manila Galleons. Financial transactions traverse land and sea over optical fibres, at the click of a mouse, with photons and electrons replacing precious metals.
In this globalised and integrated world, countries cooperate extensively with one another. Economies are especially closely linked with their neighbours in the same region.
In the Americas, you have the North American Free Trade Agreement (Nafta) and also Mercosur in South America. Nafta, which will soon become the United States-Mexico-Canada Free Trade Agreement, was one of the earliest multilateral free trade agreements (FTAs). It created one of the world's largest trading blocs by gross domestic product. Equally significant, it ushered in a new era of regional and bilateral trade agreements.
In Asia, Singapore is one of 10 members of the Association of South-east Asian Nations (Asean). Asean members have formed an economic community among ourselves, and our combined population is slightly larger than Nafta's. Recently, Asean made significant progress towards forming a Regional Comprehensive Economic Partnership (RCEP). This will be a broader FTA that brings Asean together with other major Asian economies, including China, Japan, South Korea, Australia and New Zealand.
Transpacific trade has grown significantly too. The Americas form a very important part of Asia's economic universe.
Singapore's biggest market in the Americas is the US, but we have substantial trade with Mexico and other North and South American economies too. In the other direction, Mexico's biggest trading partner in Asia is China (not surprisingly), but there are many other trading and investment opportunities in other Asian countries waiting to be developed by Mexican businesses.
Mexico and Singapore are both strategically located near the centres of our respective regions. As gateways to the countries around us, we can be pathfinders for trade and commerce. A more integrated Asia-Pacific, with strong links between the two sides of the Pacific Ocean, gives countries an interest in each other's economic success. This fosters peace and prosperity, and benefits all countries.
That is why I am glad that both Mexico and Singapore are founding members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
The CPTPP brings Asia and the Americas closer together, including both developed and developing countries. It had emerged from the earlier TPP negotiations, which included the same countries, plus the US. I am glad that Mexico stayed with the rest of the partners, after the US withdrew from the TPP, and the TPP became the CPTPP.
The CPTPP is effectively the first FTA between Singapore and Mexico. It signals to our companies that our governments encourage and support their ventures in each other's countries. There is significant interest among Singapore companies to collaborate with your private sector, including what President Andres Manuel Lopez Obrador calls artisanal microbusinesses, or small and medium-sized enterprises.
THE PACIFIC ALLIANCE
I have brought a business delegation with me on my trip, and they cover various sectors including infrastructure, logistics and technology. Singapore investments in Mexico have in fact increased every year for the past five years. I am confident that with the CPTPP in effect, our economic ties can only grow further.
Singapore is now negotiating an FTA with the Pacific Alliance (PA). The PA comprises some of the most dynamic economies in South America and Central America, including Mexico. Singapore was honoured to join as an observer state five years ago. We look forward to being an associate state of the PA via this FTA. Concluding this FTA will not only help us deepen our relationship with you in Mexico, but it will also enable Mexico and the PA countries to build deeper links with Asia, including Singapore. The last round of FTA negotiations in Bogota went well. More than two-thirds of the FTA have been resolved. The next and hopefully final round will take place here in Mexico City next month. I am optimistic that with Mexico's leadership and support, we will be able to conclude the agreement then.
Senators and Deputies, Singapore's engagement with Latin America and Mexico is robust. Yet there is much more potential waiting to be developed. Beyond an alignment of economic interest, our two countries and our leaders enjoy good relations, because of our compatible outlooks and approaches to the world.
In foreign relations, countries cannot choose our neighbours, but we can certainly choose our friends and partners, however far away they may be. And I am happy that despite our geographical separation, Singapore and Mexico have chosen to be friends and partners with each other. Long may our friendship grow and prosper!
Muchas gracias.
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