U.S. Free Trade Agreements (FTAs)
 
November 26, 2002
 

U.S. and Singapore Agree on Core Elements of FTA

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

• 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, 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 resell 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 such areas as 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.
• Anticircumvention: Strong anticircumvention 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 anticompetitive 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 and 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.

USTR Has Notified Congress of the Administration's Intent to Initiate FTA Negotiations with Australia

United States Trade Representative Robert B. Zoellick has announced he has formally notified congressional leaders of U.S. objectives and goals for negotiations for a free trade agreement (FTA) with Australia. Zoellick made the announcement after meeting with Australian Prime Minister John Howard and Trade Minister Mark Vaile in Canberra. In his letter to Congress, Zoellick wrote that he believes the United States has much to gain in pursuing a negotiation with Australia, and that the increased access to Australia’s market that an FTA would provide would further boost trade in both goods and services, enhancing employment opportunities in both countries, and further deepen the already close cooperation between the United States and Australia in advancing U.S. objectives for the multilateral negotiations currently underway in the World Trade Organization (WTO). The letter highlighted the importance of making progress on agriculture issues in the context of the negotiation. Zoellick wrote that he intends to work hard to facilitate the export of U.S. food and agricultural products to the Australian market and to address the full range of issues facing U.S. agriculture exports. A copy of the letter can be found at www.ustr.gov.

USTR Notifies Congress Administration Intends to Initiate Free Trade Negotiations with Sub-Saharan Nations

United States Trade Representative Robert B. Zoellick formally notified congressional leaders of the Administration’s intent to initiate negotiations for a free trade agreement with the nations of the South African Customs Union (SACU): Botswana, Lesotho, Namibia, South Africa and Swaziland. Zoellick's letter stated that the Administration is committed to responding to Congress’ direction, as expressed in the African Growth and Opportunity Act, to initiate negotiations with interested beneficiary countries to serve as the catalyst for increasing free trade between the United States and sub-Saharan Africa, and for increasing private sector investment in the region. A free trade agreement with SACU would deepen U.S. economic and political ties to sub-Saharan Africa and lend momentum to development efforts for the region. SACU is the largest U.S. export market in sub-Saharan Africa, accounting for approximately $3.1 billion in exports in 2001. Total two-way trade between the United States and SACU was approximately $7.9 billion in 2001. A copy of the letter can be found on the USTR Web site, www.ustr.gov.

Other Pending FTAs

Zoellick has already provided Congress with the formal notification for the Administration’s intent to enter into free trade negotiations with Morocco and five nations of Central America. Zoellick also notified Congress of the U.S. goals and objectives for completing ongoing free trade negotiations with Singapore and Chile and for the Free Trade Area of the Americas. The United States has also recently proposed the enhancement of trade ties between the U.S. and ASEAN countries (Enterprise for ASEAN Initiative).