U.S.-Singapore FTA MINN NAING OO S i n g a p o r e I n t e r n a t - PowerPoint PPT Presentation

U.S.-Singapore FTA MINN NAING OO S i n g a p o r e I n t e r n a t i o n a l A r b i t r a t i o n C e n t r e

The USSFTA: A Chronology  16 November 2000: Former US President Clinton and Prime Minister Goh agree to launch U.S.-Singapore FTA.  4 – 21 December 2000: First round of negotiations for the USSFTA held in Washington, D.C.  11 – 17 November 2002: Eleventh and final round of negotiations conducted.  6 May 2003: The USSFTA was signed in the United States by President George W. Bush and Prime Minister Goh Chok Tong.  1 January 2004: The USSFTA entered into force. S i n g a p o r e I n t e r n a t i o n a l A r b i t r a t i o n C e n t r e

Key Features • Trade in Goods – Removal of tariffs covers 100% of domestic exports • Rules of Origin – Designed to recognise that many exports from Singapore are manufactured at least partly in other states • Mutual Recognition Agreement – The MRA provides for direct entry of telecommunications equipment — such as telephones, Wireless Broadband Access equipment, and ADSL modems — into either market without the need for additional testing and certification • Trade in Services – Negative list approach – Opening of Singapore Banking Market to U.S. Banks • Investment – Investor/State dispute resolution S i n g a p o r e I n t e r n a t i o n a l A r b i t r a t i o n C e n t r e

• Movement of Business Persons – Benefits Singapore persons exclusively – Allows Singapore citizens to more easily work in the US • Government Procurement – Allows for Singapore suppliers to participate in most procurement tenders of goods and services conducted by the US Government with thresholds for all sectors substantially reduced • Dispute Settlement – Parties must first seek to resolve any dispute through negotiation and consultation, however, if this fails arbitration is provided for • Electronic Commerce – The FTA contains state-of-the-art provisions on electronic commerce, including national treatment and most-favored-nation obligations for products delivered electronically • Intellectual Property – Higher standards than those under the WTO TRIPS Agreement – Led to a significant strengthening of Singapore’s IP regime S i n g a p o r e I n t e r n a t i o n a l A r b i t r a t i o n C e n t r e

Effects of USSFTA Hard to prove direct link between trade flows and FTA. USSFTA enters into force U.S. - Singapore Trade Turnover (US$Billion) 2001 2002 2003 2004 2005 2006 2008 2010 32.7 31 31.7 34.6 35.7 42.3 43.8 46.4 U.S. Direct Foreign Investment in Singapore (US$billion) 2001 2002 2003 2004 2005 2006 2007 2008 2009 36.8 34.5 37.2 41.0 40.6 38.3 51.6 53 57.1 S i n g a p o r e I n t e r n a t i o n a l A r b i t r a t i o n C e n t r e

 Singapore’s IPR regime was strengthened considerably with legislative changes to enhance protection for new technologies and enforcement obligations. As a result, a number of US companies have located facilities in Singapore. They include the Microsoft Innovation Centre in Singapore, Lucasfilm Animation’s studio and production house (the first outside the US) and Pfizer’s US$348 million multi-purpose active pharmaceutical ingredient manufacturing facility.  In the financial services area, one US bank has opened a subsidiary in Singapore and provided more choice and convenience to customers, including SMEs. It has also increased the scope of financial activities it conducts in Singapore and created more jobs.  Under the FTA, Singapore allowed imports from the United States of chewing gum with “therapeutic value” (excluding nicotine gum) to be sold in pharmacies. The country also dropped all duties on beer from the United States. S i n g a p o r e I n t e r n a t i o n a l A r b i t r a t i o n C e n t r e