(August 29, 2008) An August 7 reception celebrating Singapore’s 43rd National Day provided an opportunity to highlight the strong trading ties between Singapore and the United States, as well as California.
Singapore is a parliamentary republic, located between Malaysia and Indonesia.
Once a colony of Great Britain and part of the East India Company, Singapore has been a major Asian port for centuries.
Singapore formally separated from Malaysia on August 9, 1965, and became an independent republic. National Day commemorates that independence. A major strategic trading partner of the United States and one of the closest friends of the United States, Singapore has one of the most open, well-regulated, safe and secure investment climates in the world. It is consistently rated among the most competitive economies in the world.
U.S.-Singapore
The U.S.-Singapore Free Trade Agreement (FTA) went into effect in January 2004. Under the agreement, most tariffs were eliminated immediately, with the remaining tariffs phased out over a three- to 10-year period.
The agreement was signed on May 6, 2003, by President George W. Bush and Goh Chok Tong, the Prime Minister of Singapore. The U.S. House of Representatives and U.S. Senate passed the FTA in July 2003 by votes of 277-155 and 66-32 respectively.
U.S. exports to Singapore topped $26.2 billion, and two-way trade between the United States and Singapore increased to more than $44.6 billion in 2007. Since implementation of the U.S.-Singapore FTA, U.S. exports to the nation have increased by $7 billion.
According to the Office of the U.S. Trade Representative, new market opportunities have also been created, including those for pharmaceutical products and organic chemicals.
Trade With California
Singapore is the 10th largest export market for California. In 2007, California exports to Singapore totaled $4.3 billion.
The U.S.-Singapore FTA enhances mutual interests in a stable, prosperous Association of South East Asian Nations (ASEAN) and East Asia, and will further strengthen the partnerships across the Pacific. With 4 million people, Singapore, one of the busiest port cities in the world, already has free trade pacts with New Zealand and Japan.
 |
| Marc Burgat (left), CalChamber vice president of government relations, joins Heng Jee See, consul general of the Republic of Singapore, and Wendy Heng at a San Francisco reception celebrating Singapore’s 43rd National Day. |
With this bilateral relationship, the United States and Singapore have put into place systems and procedures to ensure that only legitimate goods can claim preferential treatment under the FTA. An increase in the amount of information exchanged has allowed both sides to use risk management techniques to block illegal trade.
CalChamber Position
The CalChamber, in keeping with long-standing policy, enthusiastically supports free trade worldwide, expansion of international trade and investment, fair and equitable market access for California products abroad and elimination of disincentives that impede the international competitiveness of California business.
New multilateral, sectoral and regional trade agreements ensure that the UnitedStates may continue to gain access to world markets, resulting in an improved economy and additional employment of Americans.
Staff Contact: Susanne Stirling