*EPF202 11/19/2002
Fact Sheet: U.S. and Singapore Agree "in Substance" on FTA
(USTR Nov. 19 fact sheet on U.S.-Singapore Free Trade Agreement) (580)

The United States and Singapore have "reached agreement in substance" on a Free Trade Agreement (FTA), according to a November 19 fact sheet released by the Office of the U.S. Trade Representative (USTR).

Once the FTA goes into effect, the United States will lower any tariffs on Singapore goods to zero.

Under the agreement, Singapore commits to enacting a competition law and to ensuring that its government enterprises "will act as commercial entities, will not discriminate against U.S. goods and services, and will not engage in anti-competitive behavior," according to the USTR fact sheet.

Singapore is the 11th largest trading partner of the United States.

Following is the USTR fact sheet:

(begin fact sheet)

Trade Facts
From the Office of the United States Trade Representative www.ustr.gov Washington, DC 20508

U.S., Singapore Agree on Core Elements of FTA
Agreement Would Spur Trade and Investment

The United States and Singapore have reached agreement in substance on a Free Trade Agreement (FTA) that would sweep away trade barriers and spur bilateral trade and investment. Singapore is the 11th largest trading partner of the United States, with nearly $33 billion in bilateral goods trade in 2001. The major elements of the FTA are outlined below.

Goods Trade: Bilateral duties eliminated, with the majority of U.S. tariff lines going to zero upon effectiveness of the agreement; Singapore binds all tariffs immediately at zero. Detailed rules of origin will ensure that preferential duties only apply to goods eligible to receive such treatment.

Services Trade: Ensures core obligations of national treatment and Most-Favored Nation (MFN) status. Includes state-of-the-art disciplines on regulatory transparency and expedited authorization procedures. Improved market access opportunities in the area of professional services (legal, architectural, engineering, land surveyors, and others) and express delivery.

Financial Services: New market access in the banking and securities sectors, including access by U.S. banks to the local Singapore Automated Teller Machine (ATM) network, open bank branches and expanded customer service locations (ATMs). Increased market access in the insurance sector, including "best practices" for the insurance rule-making process.

Telecommunications and E-Commerce: Market access commitments to Singapore's telecommunications network, including network access, rights of way and access to cable landing stations at cost-based rates on non-discriminatory terms. Rights to re-sell telecom services, access to leased elements of the network, cost-based interconnection between networks, and strong disciplines on regulatory transparency also included. State-of-the art provisions on e-commerce, including national treatment and Most Favored Nation (MFN) obligations for products delivered electronically, affirmation that service disciplines cover all services delivered electronically, and permanent duty-free status of products delivered electronically.

Transparency: Extensive transparency commitments in general rule-making and in specific areas - e.g., services and investment. In addition, a transparent dispute settlement process includes open public hearings, public access to submissions, and the opportunity for third parties to make submissions.

Anti-circumvention: Strong anti-circumvention provisions generally, but specifically with regard to textiles trade and intellectual property rights.

Competition: Singapore commitment to enact a competition law and authority. Disciplines to ensure that its government enterprises will act as commercial entities, will not discriminate against U.S. goods and services, and will not engage in anti-competitive behavior.

Intellectual Property: Strong intellectual property protections, including significant improvements in the protection of intellectual property in the digital age, as well as better legal tools for enforcing intellectual property rights in Singapore.

Investment & Labor/Environment: Strong protections for U.S. investors and investments in Singapore, including improvements called for by Congress in Trade Promotion Authority, such as increased transparency in the investor-state dispute settlement process. Singapore has accepted an innovative U.S. proposal for labor/environment dispute settlement involving the use of monetary assessments.

(end fact sheet)

(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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