Singapore pushes back on US trade probes, defends labour safeguards and rejects excess capacity claims

Singapore has told the United States it does not condone forced labour in supply chains and maintains a comprehensive enforcement framework, responding to two ongoing US trade investigations.

In written submissions dated 15 April 2026, the Ministry of Trade and Industry (MTI) addressed separate probes by the Office of the United States Trade Representative (USTR).

One investigation examines alleged structural excess capacity in manufacturing sectors, while the other evaluates the effectiveness of Singapore’s measures to prevent imports of goods produced with forced labour.

MTI emphasised the strength of bilateral economic ties, stating that trade between both countries remains mutually beneficial and driven by market forces.

“The US has enjoyed a consistent trade surplus with Singapore for over 20 years,” MTI said.

Response to forced labour concerns

Singapore is among approximately 60 economies named in the USTR probe into whether sufficient steps have been taken to prevent the import of goods produced with forced labour.

Other economies listed include Australia, Japan, South Korea, Indonesia and the United Kingdom.

In its submission, MTI stated that Singapore takes a “firm stance” against forced labour and has established a comprehensive legal and enforcement framework to address such practices domestically.

Forced labour is criminalised under the Penal Code, while the Prevention of Human Trafficking Act defines it as a form of exploitation and sets out penalties for offenders.

Authorities said multiple agencies are involved in enforcement efforts.

These include the Ministry of Manpower (MOM), the Ministry of Home Affairs and the Singapore Police Force, which investigate complaints alleging breaches of domestic laws.

Workers can report suspected abuses through MOM’s hotline, non-governmental organisations or directly to law enforcement agencies.

Tripartite labour protections highlighted

Singapore also pointed to its tripartite labour model as a central pillar of worker protection.

This framework involves cooperation between the government, employers and trade unions to uphold labour standards and ensure accountability.

MTI said the system helps ensure workers are informed of their rights while employers remain subject to regulatory oversight.

Authorities stressed that there is no evidence linking Singapore to forced labour exports to the United States.

Singapore stated it is not aware of any goods produced with forced labour that have been exported from its territory to the US.

It also noted that it has never been included in the US Department of Labor’s List of Goods Produced by Child Labor or Forced Labor since the report’s introduction in 2009.

In addition, there have been no instances of US Customs and Border Protection issuing Withhold Release Orders on shipments originating from Singapore.

“Moreover, Singapore has cooperated with the US when there have been specific and credible allegations related to forced labour in supply chains that potentially violate US laws,” MTI said.

Limitations in tackling global supply chains

Singapore cautioned that addressing forced labour is a complex transnational challenge that cannot be resolved through unilateral import bans.

Authorities said such measures risk diverting goods to alternative markets rather than eliminating exploitative practices.

“Beyond robust domestic regulation and enforcement against forced labour within our borders, our work thus far has indicated that there are limitations that many countries, including Singapore, face,” MTI said.

These limitations include the absence of a global regulatory framework and the lack of an internationally agreed list of goods produced using forced labour.

MTI also highlighted the practical challenges involved in investigating supply chains.

These include the need for access to overseas production sites, worker testimonies and supporting documentation, all of which depend on cooperation from authorities in source countries.

“Without such evidence, Singapore will not be able to viably and sustainably monitor whether shipments flowing in and out of Singapore or transshipped via Singapore are produced by forced labour,” the ministry said.

“Singapore is open to exploring whether it may be possible to implement systems to identify or solicit such information.”

Trade surplus and economic ties under scrutiny

Addressing the second probe into structural excess capacity, MTI reiterated that the US has maintained a consistent trade surplus with Singapore for more than two decades.

According to US data cited by the ministry, the goods trade surplus increased from US$1.9 billion in 2024 to US$3.6 billion in 2025.

The services trade surplus also rose, from US$25.1 billion to US$29.6 billion over the same period.

The US recorded surpluses in key sectors such as semiconductors, electrical equipment and petrochemicals.

While a deficit remained in pharmaceuticals, the gap narrowed significantly in 2025.

MTI said Singapore has been subject to only one US anti-dumping investigation throughout the history of bilateral trade relations.

It described this as evidence of alignment with international trade norms.

“These are the hallmarks of a longstanding and mutually beneficial economic relationship,” the ministry said.

Role of free trade agreement and investment

MTI highlighted the importance of the US-Singapore Free Trade Agreement, which has been in force since 2004.

Under the agreement, Singapore imposes zero tariffs on US exports.

The ministry added that bilateral trade and Singapore’s investments in the US support approximately 350,000 American jobs.

Singapore is also the third-largest Asian investor in the United States.

Investment stock reached US$71.7 billion in 2025, according to MTI.

Rejection of excess capacity allegations

Singapore rejected claims that it maintains excess industrial capacity.

MTI said occupancy rates for manufacturing-specific industrial spaces have remained consistently high at around 90 per cent over the past five years.

This level includes buffers for typical vacancy and cyclical fluctuations and is consistent with global norms for advanced economies.

Authorities said this does not indicate oversupply.

Additional market indicators, including steady growth in industrial property prices and rents, as well as strong demand in land tenders, were cited as evidence of balanced capacity.

MTI also noted that Singapore’s land scarcity discourages underutilisation.

Industrial spaces are actively redeveloped to meet evolving demand, ensuring efficient use of limited resources.

Trade structure and economic model explained

Singapore described its economy as highly trade-dependent due to its lack of natural resources.

Authorities said trade outcomes are shaped by market forces rather than state intervention.

“Singapore’s economic policies are carefully designed to ensure that market forces are not distorted,” MTI said.

The country adheres to international obligations under free trade agreements and the World Trade Organization.

Singapore typically imports lower-value inputs and exports higher-value goods.

This contributes to positive net exports in sectors such as electronics and energy and chemicals.

Conversely, it runs trade deficits in sectors where it lacks natural advantages, including agriculture and raw materials such as steel and aluminium.