Monday, January 28, 2008
[IWS] CRS: U.S.-SINGAPORE FREE TRADE AGREEMENT: EFFECTS AFTER THREE YEARS [7 January 2008]
IWS Documented News Service
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
Congressional Research Service (CRS)
Order Code RL34315
The U.S.-Singapore Free Trade Agreement: Effects After Three Years
January 7, 2008
Dick K. Nanto, Specialist in Industry and Trade, Foreign Affairs, Defense, and Trade Division
http://assets.opencrs.com/rpts/RL34315_20080107.pdf
[full-text, 23 pages]
Includes numerous CHARTS & TABLES....
Summary
The U.S.-Singapore Free Trade Agreement (FTA) (P.L. 108-78) went into effect
on January 1, 2004. This report provides an overview of the major trade and
economic effects of the FTA over the three years ending in 2006. It also includes
detailed information on key provisions of the agreement and legislative action.
The U.S.-Singapore FTA has provided greater access for U.S. companies, has
been instrumental in increasing bilateral trade, and has provided reassurance to
Singaporeans of U.S. interest in the country. As a city-state, Singapore operates as
an entrepot with essentially free trade. Under the FTA, concessions dealt mainly
with providing greater access for American service providers and with strengthening
the business environment in areas such as the protection of intellectual property
rights and access to government procurement.
In 2006, the United States ran a $6.9 billion surplus in its merchandise trade
with Singapore, up from $1.4 billion in 2003. U.S. exports of goods to Singapore
surged by 49% from $16.6 billion in 2003 to $24.7 billion in 2006. However, even
with this rapid increase in U.S. exports, the U.S. share of Singapore's imports
declined from 16% in 2003 to 13% in 2006. This suggests that factors other than the
FTA, particularly the overall growth in Singapore's imports, contributed greatly to
the increase. Major U.S. exports to Singapore include machinery, electrical
machinery, aircraft, optical and medical instruments, plastic, and mineral fuel oil.
On the U.S. import side, a noteworthy development is that imports of
pharmaceuticals from Singapore have risen dramatically from $0.09 billion in 2003
to $2.4 billion in 2006. The FTA did not lower the U.S. tariff rate for
pharmaceuticals, since they already enter the United States duty free. What appears
to have occurred has been the development of Singapore as a regional center for
multinational pharmaceutical companies that are stepping up exports.
Negotiations for the U.S.-Singapore Free Trade Agreement were launched under
the Clinton Administration in December 2000. The FTA became the fifth such
agreement the United States has signed and the first with an Asian country.
According to the U.S. Trade Representative, the FTA broke new ground in electronic
commerce, competition policy, and government procurement. It also included what
the U.S. Trade Representative considers to be major advances in intellectual property
protection, environment, labor, transparency, and customs cooperation.
The U.S.-Singapore FTA required congressional implementation under
expedited Trade Promotion Authority legislative procedures. The debate over
implementation of the FTA fell between business and free trade interests who would
benefit from more liberalized trade, particularly in services, and labor or antiglobalization
interests who opposed more FTAs because of the overall impact of
imports on jobs and the general effects of globalization on income distribution,
certain jobs, and the environment. Specific provisions of the agreement also
generated debate. This report will be updated as circumstances warrant.
Contents
Trade in Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Trade and Market Access in Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Financial Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Legal Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Electronic Commerce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Intellectual Property Rights (IPR) Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
U.S. Imports from Singapore . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Balance of Trade by Sectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Labor Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Environmental Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Cargo Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Other Effects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
List of Figures
Figure 1. U.S. Merchandise Exports to, Imports from, and Trade Balance with Singapore . . . . . . . . . . 3
Figure 2. Leading U.S. Exports to Singapore by Category . . . . . . . . . . . . . . . . . . 4
Figure 3. Singapore's Imports by Major Country Shares . . . . . . . . . . . . . . . . . . . 5
Figure 4. U.S. Balance of Trade with Singapore in Services and Its Components . . . . . . . . . . . 7
Figure 5. Growth in U.S. Imports from Singapore by 2-Digit Harmonized System Sectors . . . . . . . . . 11
Figure 6. Singapore's Exports of Pharmaceutical Products by Origin . . . . . . . . 13
Figure 7. U.S.-Singapore Balance of Trade by Sectors, 2006 . . . . . . . . . . . . . . . 14
List of Tables
Table 1. Singapore's Import Market Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Table 2. Major U.S. Imports from Singapore, Customs Value by Two-Digit Harmonized System Commodity Codes . . . . . . . 17
Table 3. Major U.S. Exports to Singapore, Customs Value by Two-digit Harmonized System Commodity Codes . . . . . . . . . . . . 19
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
****************************************
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
Congressional Research Service (CRS)
Order Code RL34315
The U.S.-Singapore Free Trade Agreement: Effects After Three Years
January 7, 2008
Dick K. Nanto, Specialist in Industry and Trade, Foreign Affairs, Defense, and Trade Division
http://assets.opencrs.com/rpts/RL34315_20080107.pdf
[full-text, 23 pages]
Includes numerous CHARTS & TABLES....
Summary
The U.S.-Singapore Free Trade Agreement (FTA) (P.L. 108-78) went into effect
on January 1, 2004. This report provides an overview of the major trade and
economic effects of the FTA over the three years ending in 2006. It also includes
detailed information on key provisions of the agreement and legislative action.
The U.S.-Singapore FTA has provided greater access for U.S. companies, has
been instrumental in increasing bilateral trade, and has provided reassurance to
Singaporeans of U.S. interest in the country. As a city-state, Singapore operates as
an entrepot with essentially free trade. Under the FTA, concessions dealt mainly
with providing greater access for American service providers and with strengthening
the business environment in areas such as the protection of intellectual property
rights and access to government procurement.
In 2006, the United States ran a $6.9 billion surplus in its merchandise trade
with Singapore, up from $1.4 billion in 2003. U.S. exports of goods to Singapore
surged by 49% from $16.6 billion in 2003 to $24.7 billion in 2006. However, even
with this rapid increase in U.S. exports, the U.S. share of Singapore's imports
declined from 16% in 2003 to 13% in 2006. This suggests that factors other than the
FTA, particularly the overall growth in Singapore's imports, contributed greatly to
the increase. Major U.S. exports to Singapore include machinery, electrical
machinery, aircraft, optical and medical instruments, plastic, and mineral fuel oil.
On the U.S. import side, a noteworthy development is that imports of
pharmaceuticals from Singapore have risen dramatically from $0.09 billion in 2003
to $2.4 billion in 2006. The FTA did not lower the U.S. tariff rate for
pharmaceuticals, since they already enter the United States duty free. What appears
to have occurred has been the development of Singapore as a regional center for
multinational pharmaceutical companies that are stepping up exports.
Negotiations for the U.S.-Singapore Free Trade Agreement were launched under
the Clinton Administration in December 2000. The FTA became the fifth such
agreement the United States has signed and the first with an Asian country.
According to the U.S. Trade Representative, the FTA broke new ground in electronic
commerce, competition policy, and government procurement. It also included what
the U.S. Trade Representative considers to be major advances in intellectual property
protection, environment, labor, transparency, and customs cooperation.
The U.S.-Singapore FTA required congressional implementation under
expedited Trade Promotion Authority legislative procedures. The debate over
implementation of the FTA fell between business and free trade interests who would
benefit from more liberalized trade, particularly in services, and labor or antiglobalization
interests who opposed more FTAs because of the overall impact of
imports on jobs and the general effects of globalization on income distribution,
certain jobs, and the environment. Specific provisions of the agreement also
generated debate. This report will be updated as circumstances warrant.
Contents
Trade in Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Trade and Market Access in Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Financial Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Legal Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Electronic Commerce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Intellectual Property Rights (IPR) Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
U.S. Imports from Singapore . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Balance of Trade by Sectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Labor Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Environmental Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Cargo Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Other Effects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
List of Figures
Figure 1. U.S. Merchandise Exports to, Imports from, and Trade Balance with Singapore . . . . . . . . . . 3
Figure 2. Leading U.S. Exports to Singapore by Category . . . . . . . . . . . . . . . . . . 4
Figure 3. Singapore's Imports by Major Country Shares . . . . . . . . . . . . . . . . . . . 5
Figure 4. U.S. Balance of Trade with Singapore in Services and Its Components . . . . . . . . . . . 7
Figure 5. Growth in U.S. Imports from Singapore by 2-Digit Harmonized System Sectors . . . . . . . . . 11
Figure 6. Singapore's Exports of Pharmaceutical Products by Origin . . . . . . . . 13
Figure 7. U.S.-Singapore Balance of Trade by Sectors, 2006 . . . . . . . . . . . . . . . 14
List of Tables
Table 1. Singapore's Import Market Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Table 2. Major U.S. Imports from Singapore, Customs Value by Two-Digit Harmonized System Commodity Codes . . . . . . . 17
Table 3. Major U.S. Exports to Singapore, Customs Value by Two-digit Harmonized System Commodity Codes . . . . . . . . . . . . 19
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
****************************************
# posted by SBasefsky : 10:28 AM
