Singapore, New Zealand sign world’s first legally binding supply chain resilience pact

SINGAPORE: Singapore and New Zealand on Monday (May 4) signed the world’s first legally binding bilateral agreement to keep essential supplies – including food, fuel, healthcare products, and chemical and construction materials – flowing even during crises. 

The Agreement on Trade in Essential Supplies was signed by Singapore’s Minister-in-charge of Energy, Science and Technology Tan See Leng and New Zealand’s Minister for Trade and Investment Todd McClay at the Singapore-New Zealand Annual Leaders’ Meeting in Singapore, witnessed by the prime ministers of both countries.

Both governments committed not to impose unnecessary export restrictions on the agreed essential goods, the Ministry of Trade and Industry (MTI) said. 

The agreement will take effect after domestic procedures on both sides are completed, and will be incorporated into the existing bilateral free trade agreement between the two countries.

It also establishes a framework for both countries to facilitate the movement of goods, share information and consult each other before or during supply chain disruptions, providing businesses and consumers with greater confidence and stability, MTI said.

Speaking at a joint press conference, Singapore Prime Minister Lawrence Wong said the pact sends a clear signal that trusted partners will keep faith with each other even under strain. 

“It means that even in times of crisis or shortages, we will keep essential goods flowing – food, fuel and other critical supplies. We will not shut each other out. And instead, we will work actively to keep trade moving,” said Mr Wong. 

“This matters because in difficult times, every country will be tempted to look inward. But when that happens, supply chains break down and everyone ends up worse off.” 

The agreement represents both countries’ commitment to doing things differently – keeping markets open, continuing to trade essential goods and standing by each other when it matters most, Mr Wong added. 

New Zealand Prime Minister Christopher Luxon said at the press conference it was reassuring that both countries were taking practical steps to strengthen their resilience, by keeping essential links open while continuing to advance an agenda focused on growth.  

About a third of New Zealand’s fuel is refined in Singapore, so what happens in Singapore has a direct bearing on New Zealand’s economic resilience and energy security, said Mr Luxon. 

New Zealand is also a trusted supplier of food and other essential goods to Singapore, he added. 

The diesel that New Zealand receives from Singapore underpins the farming and freight systems that keep New Zealand’s food moving into the region, said Mr Luxon. 

“This is a relationship which both countries can rely on one another. We have each other’s backs and that is why today’s signing of the agreement on trade and essential supplies is just so important,” he said. 

“It takes a longstanding trust and it turns it into really practical action, a commitment to keep essential trade flowing in a crisis, and a commitment to give businesses, governments and the public confidence that trusted supply lines will remain open under huge pressure.” 

Mr Wong said he and Mr Luxon discussed how to take Singapore and New Zealand’s cooperation further under the countries’ Comprehensive Strategic Partnership. 

The Singapore-New Zealand Leadership Forum, which both leaders gave opening remarks at on Monday morning, brings senior business leaders from both countries together, encouraging to build new partnerships and seize opportunities in the region, said Mr Wong. 

The two countries will continue to deepen their defence and security ties, he said, adding that Singapore values New Zealand’s longstanding support for the Singapore Armed Force’s training in
Waiouru. 

Singapore will also continue to support New Zealand’s defence forces access in and through Singapore, said Mr Wong. 

The two countries are working together in newer areas, including unmanned technologies, which will benefit the professional development of both countries’ armed forces, he added. 

Singapore and New Zealand are strengthening cooperation in critical areas like healthcare and food supply, said Mr Wong. 

MTI and New Zealand’s Ministry of Foreign Affairs and Trade signed an implementing arrangement on the use of electronic certification for trade in food and primary products between the two countries in February.

This will facilitate agri-food trade between both countries by streamlining certification processes, said the Singapore Food Agency in a separate press release on Monday. 

The health ministries of both countries also signed a memorandum of understanding to deepen cooperation and partnership in the health sector.

This includes cooperation in areas such as primary care, preparedness for infectious disease outbreaks and pandemics, supply chain resilience for healthcare supplies, healthcare regulation and health technology assessment, said Singapore’s Ministry of Health on Monday. 

Beyond their bilateral ties, both countries will work together on the wider stage, said Mr Wong. 

“Both countries believe in an open, rules-based international system, especially at a time when it is under strain,” he added. 

As fellow founding members of the Future of Investment and Trade Partnership, Singapore and New Zealand will push to keep trade open, rules clear and supply chains dependable, said Mr Wong. 

He also welcomed New Zealand’s upgrading of its relations with ASEAN to a comprehensive strategic partnership. 

Partnerships like this become even more important in these uncertain times,” said Mr Wong. 

“We may be small countries, at least in terms of population. But we have agency. And when we work together with clarity, with purpose, and with trust, we can shape outcomes together, turn challenges into opportunities and bring benefits to our peoples.”