Singapore free trade agreements


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Singapore free trade agreements

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  • The total amount by which money spent is more that money received…more imports than exports
  • PSA Corporation, the busiest container port in the world, offers shippers a choice of 200 shipping lines with links to some 700 ports in 130 countries. Its Singapore terminals handle 25 per cent of the world's transshipment volume.Change International Airport is linked to 140 cities in 50 countries, with more than 3,250 weekly flights ferrying passengers and cargo to and from all parts of the world.
    Within Singapore, a broadband network reaches 99 per cent of the population. International connectivity now stands at 21 Tops and continues to expand. The World Economic Forum ranked Singapore among the top 10 in the world for network readiness in 2002.Getting around the island is effortless with the highly efficient Mass Rapid Transit system, and bus and taxi services. There is a wide choice of business premises - sophisticated commercial complexes, fashionable conservation areas, and specially structured industrial sites.
  • Singapore free trade agreements

    1. 1. SINGAP ORE FREE TRADE AGREEMENTS T eam 5: Ryan Karasack Barrett Seitz Lauren McKenna
    2. 2. Background of Singapore • Singapore was founded as a British trading colony in 1819 • Population: 4,608,595 (July 2003 est.) • Ethnic Groups: • Chinese 76.7%, Malay 14%, Indian 7.9%, other 1.4% Suffrage: • 21 years of age; universal and compulsory
    3. 3. Key Issues • Company Formation of Free Trade Agreements • Japan • United States • Multinationals in Singapore
    4. 4. Singapore & Japan • Dec 1999 – Negotiations Began • Early 2001 – Consensus on FTA was reached • Reduction of tariff and not tariff barriers. • A mutual recognition of national standards • Viewed by many as a possible template for future FTA’s in the region
    5. 5. Singapore & Japan • Bulk of Japanese Exports to Singapore Include • Machinery & Equipment • Business & Financial Services • Chemical & Mineral Products • Singapore exports to Japan are concentrated in the service sector
    6. 6. Areas of Trade • Customs Automation • Reduction of customs cost on bilateral trade • Electronic Commerce • To improve security and harmonize standards governing e-commerce • Decrease of 1.39% of the average price for ecommerce transactions • Service Trade
    7. 7. Areas Of Trade • Service Trade • Liberalization of Service Trade • Elimination of service trade barriers • Lowered the effective price of business and financial services exported from Singapore to Japan by 20.6%, and for construction services the price drop is 29.9%
    8. 8. Impacts On Free Trade Singapore: • Higher rates of return on investments • Boost demand for Singapore products • Cost of Investing in Singapore has fallen Japan: • Minor impact on aggregate output, trade, investment, and GDP • Advantages driven largely by the customs atomization process, which affects cost of trading with all partners
    9. 9. Other Impacts • All Asian economies gain in terms of GDP • Largest impact felt in Malaysia & Thailand – Two countries that do a great deal of trading with Singapore & Japan • Increase in foreign ownership in Singapore is financed by a modest increase in outward foreign direct investment by U.S. and Canada • Many other Asian countries reduce their foreign investment to increase investment in domestic countries.
    10. 10. The U.S. Free Trade Agreement Overvie • Signed on May 6, w 2003 • Focuses mainly on: – services firms • But also touches on: – trading of goods – protection of intellectual property rights, and – Protections for investors
    11. 11. The U.S. Free Trade Agreement T rading of Services • Singapore and The U.S. services firms will enjoy fair and non-discriminatory treatment in trade, through both: – Travel of service professionals across borders, and – Establishing a local services presence • Market access commitments apply across a range of sectors, including: – – – – – Financial services Telecommunications services Tourism Advertising Professional services
    12. 12. The U.S. Free Trade Agreement T rading of Goods • Most U.S. tariffs on Singaporean goods will be eliminated immediately upon entry into the agreement • Singapore guarantees zero tariffs immediately on all U.S. products
    13. 13. The U.S. Free Trade Agreement Property P rotection of Intellectual Rights • Protection of copyrights, patents, trademarks, and trade secrets • IPR Enforcement – Tough penalties for piracy and counterfeiting – Singaporean government guarantees that it has authority to seize, forfeit and destroy counterfeit and pirated goods and the equipment used to produce them “The U.S.-Singapore FTA contains ground-breaking protection for U.S. intellectual property such as software, movies, music and books. These protections are vitally important in the digital age.” ~Robert B. Zoellick, U.S. Trade Representative
    14. 14. The U.S. Free Trade P Agreement rotections for • Investors The agreement provided U.S. investors operating in Singapore with a secure and predictable legal framework
    15. 15. Objections to Free Trade • Less U.S. jobs for U.S. citizens – Agreement provides laws that would create what is effectively a permanent visa worker program for Singapore • An increase in the U.S. trade deficit “The U.S. trade deficit has increased in ever case where the U.S. has entered a free trade agreement with another country.” ~Marcy Kaptur, Congresswoman – FTA with China in 2000: increased 25% to $103 billion – NAFTA increased the trade deficit by almost 10 times what it was before it went into effect, from $9 billion to $87 billion – NAFTA also put over a million workers out of jobs due to free trade – The U.S. trade deficit was the largest ever reaching $435.2 billion in 2002
    16. 16. Other Free Trade Agreements • New Zealand • Australia – October 2002 • In the works: • • • • • Canada India Chile Jordan South Korea
    17. 17. • M ultinationals in Singapore Singapore is regarded as top Regional HUB • In 2002 Forbes ranked Singapore the second best place in the world to start a business.
    18. 18. Top Regional HUB for Multinational Companies Over 6000 multinational corporations have offices in Singapore – 3,600 use Singapore as their regional headquarters – 1,400 of these are U.S.-based companies • 300 of these use Singapore as their regional headquarters • The U.S. is the largest Foreign Direct Investor in Singapore: US$27.3 billion • Intra-MNC trade accounts for over 60% of US-Singapore trade
    19. 19. Singapore as a Multinational in the U.S. • Singapore is the U.S.’s third largest investment • Second largest Asian Investor after Japan • Foreign direct investments are twice that of South Korea, Hong Kong, and Chinese Taipei • Investments amounted to US$6.5 billion at the end of 2001 in: » Manufacturing » Real Estate » Depository Institutions
    20. 20. Why Multinationals Choose Singapore as their Asia-Pacific headquarters: • A well-developed, free-market economy • A well-educated, English-speaking workforce • Favorable incentives and tax breaks – no capital gains tax • A pro-business environment with the absence of labor-management disputes • One of the best connected countries in the world – Air – Busiest seaport – telecommunications
    21. 21. The Effects of the USSFTA on Multinationals • The USSFTA will be felt most in two of Singapore’s key sectors – Retail Banking – Information and Communication Technology (ICT) industries • Impact on the Real Estate Industry
    22. 22. The USSFTA Effect on the Banking Industry • U.S. companies will have access to Singapore’s country-wide ATM network • It will open the ranks of full-service U.S. banks eligible to undertake retail business • It will increase the number of branches that licensed U.S. banks can operate
    23. 23. The USSFTA Effect on the Information and Communication Technology Industries • Will initiate intellectual property rights laws • Will create significant enhancements to • Trademarks • Copyrights • Patents and trade secrets • Singapore government is determined to position Singapore as the regional ICT hub and is encouraging joint ventures and overseas investments
    24. 24. Impact on the Singapore Real Estate Market • With the liberalization in bilateral trade and investment brought by the USSFTA, it is estimated that GDP will grow another 0.5% • MNC’s have begun re-appraising various investment destinations which will make it more attractive to foreign investors worldwide • As a result, this should raise demand for real estate in Singapore
    25. 25. The USSFTA Effect • Will save Singapore up to US$170 million annually in tariffs • Currently electronics account for 42% of Singapore’s total industrial output • The majority of the output is exported to the U.S. • Singapore-based U.S. MNC’s therefore will benefit the most from this new agreement
    26. 26. Videos • 712.html •
    27. 27. Notes • • • • • • • • • • CIA - The World Factbook International Economics - Regional Trading Agreements Economic Intelligence Unit ISI Emerging Markets CNN Asia Pacific Connections Asian News U.S. House of Representatives United States Trade Representative U.S. Dept of Commerce