(May 4): Singapore and New Zealand signed a deal Monday to strengthen supply chain resilience and safeguard the flow of critical goods such as food and energy, as both countries seek to shield their trade-dependent economies against disruptions from the war in Iran.
The pact, described by Singapore Prime Minister Lawrence Wong as the first of its kind, was announced during his New Zealand counterpart Christopher Luxon’s visit to the city-state. It includes a commitment not to restrict exports to each other of essentials including food, fuel, healthcare, chemical and construction products.
“Even in times of crisis or shortages, we will keep essential goods flowing — food, fuel and other critical supplies,” Wong said during a joint press conference. “We will not shut each other out.”
The terms of the deal will be incorporated into their existing free-trade agreement, with both nations open to extending the supply chain resilience arrangement to other nations. “We welcome other countries to join us,” Wong said.
The moves come as countries across Asia and beyond step up coordination to mitigate the impact of supply disruptions reverberating from the closure of the Strait of Hormuz, which has strained energy shipping routes and driven up costs globally. Singapore earlier this month made similar commitments on fuel supplies with Australia while seeking new sources of natural gas beyond the Middle East.
About a third of New Zealand’s fuel is refined in Singapore, Luxon said during the press conference. “So what happens here has a direct bearing on New Zealand’s economic resilience and energy security,” he said, adding that fuel supplies from Singapore help underpin the farming and freight system that exports New Zealand foodstuffs.
See also: Trump says US to start guiding trapped ships through Hormuz
Beyond supply chains, Singapore and New Zealand previously outlined plans to deepen economic ties under a comprehensive strategic partnership signed in October, which includes exploring a green economy partnership linking trade and climate goals and expanding investment and capital markets cooperation.
The two sides have also pledged to broaden defence cooperation, including in emerging areas such as unmanned technologies.
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