with Singapore - US Chamber of Commerce

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THE U.S.-SINGAPORE FREE TRADE AGREEMENTGood News for U.S. Companies, Workers, and ConsumersThe historic U.S.-Singapore Free Trade Agreement (FTA) will be the first FTA theUnited States has signed with any country in Asia. It is an agreement amongfriends—as Singapore is an important economic and strategic partner for theUnited States in Southeast Asia.The agreement offers U.S. firms increased access to the Singapore market and landmarkintellectual property protections, which will serve as a model for other agreements throughoutthe ASEAN region. It is good news for U.S. companies, workers, and consumers.Key Economic PartnerOperating one of the world’s busiest ports, Singapore is a key trading partner for the UnitedStates. Over 1500 American companies are operating in Singapore today, with over 300 of thesehaving made Singapore their regional Asia-Pacific headquarters. Two-way U.S. Singapore trade lastyear totaled $33 billion, making Singapore the 11th largest U.S. trading partner worldwide.In addition to offering a safe, high-tech, business-friendly environment, Singapore is thegateway to the larger ASEAN market, which has recently seen trade liberalization through theimplementation of the ASEAN Free Trade Agreement (AFTA). Singapore’s participation in free tradeagreements within ASEAN and around the region allow U.S. companies to take advantage of furthertariff reductions and effectively use Singapore as a regional hub and manufacturing center. TheASEAN market offers enormous potential for U.S. business with nearly 500 million consumers.Key Security PartnerSingapore is an important U.S. security partner uniquely situated at the heart of Asia, at thecrossroads between the Indian and Pacific Oceans. Many key transshipment and shipping laneslie in close proximity to Singapore’s shores, and Singapore has helped lead the effort to tightenport security, being the first port in Asia to agree to participate in the Container SecurityInitiative (CSI).Singapore has been an early and strong supporter of the war against terrorism, providingcritical moral, logistical, and financial support. Singapore’s participation on the Security Councilas one of the 10 nonpermanent members continues to buttress the Council’s stand on theWar on Terrorism.After the removal of U.S. military forces from the Philippines in 1992, Singapore granted theU.S. Navy and Air Force access to custom-built military facilities. Such access has been criticalto ensuring U.S. military operational readiness.6
Key Benefits of the FTAExportsSingapore guarantees zero tariffs immediately on all U.S. products. The FTA will eliminate orreduce certain significant nontariff barriers. For example, it will result in a change in the waySingapore calculates excise taxes on imported automotive vehicles. Textiles and apparel will beduty-free immediately if they meet the agreement’s rules of origin, offering new opportunities forU.S. and Singaporean fiber, yarn, fabric, and apparel manufacturing.Financial ServicesU.S. firms can take advantage of new opportunities in Singapore’s banking and securitiessectors. U.S. financial institutions will have access to the Singapore Automated Teller Machine(ATM) network, and restrictions will be lifted on the number of qualifying full banks permitted toundertake retail business and on the number of branches already licensed U.S. banks can operatein Singapore.In the area of asset management, eligibility criteria have been eased for U.S. asset managersto qualify to provide approved products under the Central Provident Fund.Professional ServicesU.S. professional service firms (legal, architectural, engineering, and land surveyors) will haveimproved market access to Singapore. For U.S. law firms, Singapore will loosen the requirementsthat firms must meet to participate in joint law ventures with local firms. For the purpose of beingadmitted to practice Singapore law, Singapore will recognize law degrees granted by a limitednumber of U.S. law schools. For U.S. architectural and engineering firms, local ownershiprestrictions have been relaxed. Outside the FTA context, Singapore and the United States willexplore interest in a system to mutually recognize professional qualifications in the architectureand engineering fields.Intellectual Property RightsThe FTA will provide high-level intellectual property rights protection for the following areas:1) trademarks (stronger protection for well-known marks), 2) copyrights, 3) patents, and 4) tradesecrets. Singapore agreed to cooperate in preventing pirated and counterfeit goods from enteringthe United States and to impose criminal penalties as an enforcement mechanism.7
Page 1 and 2: FACES OF TRADESmall Business Succes
Page 3 and 4: TABLE OF CONTENTSLetter From the Am
Page 5 and 6: LETTER FROM THE U.S. CHAMBER OF COM
Page 7: Singapore is our 11th largest tradi
Page 11 and 12: This free trade agreement sets new
Page 13 and 14: EXPORTFOODIndustry: Trading Company
Page 15 and 16: HEALTH/MEDICALMANUFACTURINGIndustry
Page 17 and 18: MANUFACTURINGIndustry: Heavy Manufa
Page 19 and 20: MANUFACTURINGIndustry: Manufacturin
Page 21 and 22: TRANSPORTATIONIndustry: Cargo Trans
Page 23 and 24: Copyright 2003 by Chamber of Commer

with Singapore - US Chamber of Commerce

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