Singapore said it may pursue a free trade pact with Iran, making the Islamic nation the sixth in the West Asia the wealthy city-state wants to forge close economic ties with.
The announcement came while Singapore Prime Minister Goh Chok Tong was on a five-day trip to Iran. He met Iranian President Mohammad Khatami on Monday.
"The two expressed satisfaction over the current state of relations between Iran and Singapore and agreed there was great untapped potential, particularly for businesses of both countries," said a statement issued by Goh's press secretary in Tehran late on Tuesday.
"Such a framework could have three pillars: a free trade agreement, an investment guarantee agreement and avoidance of double taxation agreement," it said.
Singapore has made free trade agreements a cornerstone of its economic policy, and has already signed a trade pact with Jordan and will soon begin negotiations with Bahrain, Qatar, Oman and possibly Egypt.
The Southeast Asian nation has signed free trade deals with the United States, Australia, Japan, New Zealand, Switzerland, Norway, Iceland and Liechtenstein.
It is also in talks with Canada, South Korea, India and Pakistan and is about to start negotiations with China in November and with Sri Lanka at an unspecified date.
On possibly his last overseas trip as prime minister, Goh is slated to hand over his position to Lee Hsien Loong, the son of the city-state's founding father Lee Kuan Yew, later this year.
The Southeast Asian nation has signed free trade deals with the United States, Australia, Japan, New Zealand, Switzerland, Norway, Iceland and Liechtenstein.
It is also in talks with Canada, South Korea, India and Pakistan and is about to start negotiations with China in November and with Sri Lanka at an unspecified date.
On possibly his last overseas trip as prime minister, Goh is slated to hand over his position to Lee Hsien Loong, the son of the city-state's founding father Lee Kuan Yew, later this year.