The U.S.-Singapore Free Trade Agreement (CRS Report for Congress)
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| Release Date |
Revised June 15, 2004 |
| Report Number |
RL31789 |
| Report Type |
Report |
| Authors |
Dick K. Nanto, Foreign Affairs, Defense, and Trade Division |
| Source Agency |
Congressional Research Service |
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Summary:
On September 4, 2003, President Bush signed the U.S.-Singapore Free Trade Agreement ( P.L.
108-78 ) into law in a White House ceremony. The agreement went into effect on January 1, 2004.
In late July 2003, the United States-Singapore Free Trade Agreement Implementation Act had passed
the House by a vote of 272-155 and the Senate by a vote of 66-32. The Free Trade Agreement (FTA)
will, with a phase-in period, eliminate tariffs on all goods traded between them, cover trade in
services, and protect intellectual property rights. In July 2003, the House Ways and Means
Committee, Senate Finance Committee, and House and Senate Judiciary Committees held mock
markups on the draft implementing legislation. On July 15, the United States-Singapore FTA
Implementation Act ( H.R. 2739 (Delay) and S. 1417 (Grassley)) was
introduced and by July 17 had received committee approval.
The agreement has received support from the business community and consumer organizations
but has been criticized by labor and some environmental interests. Some of the specific concerns
raised deal with the restrictions on penalties for unresolvable disputes over labor and environmental
issues, the Integrated Sourcing Initiative, potential capital controls, temporary visas, and access for
U.S. exports of chewing gum. A basic policy issue with respect to the FTA is whether the United
States should pursue free trade and investment relations on a bilateral basis rather than maintaining
existing trade and investment practices on both sides or pursuing more liberalized trade relations
through other means. Also at issue is the extent to which the FTA language should be used as a
model for other agreements.
Negotiations for the U.S.-Singapore Free Trade Agreement were launched under the Clinton
Administration in December 2000. The FTA would be the fifth such agreement the United States
has signed and the first with an Asian country. According to the U.S. Trade Representative, the FTA
has broken new ground in electronic commerce, competition policy, and government procurement.
It also includes what the U.S. Trade Representative reportedly considers to be major advances in
intellectual property protection, environment, labor, transparency, customs cooperation, and
transshipments.
The U.S.-Singapore FTA required congressional implementation under expedited Trade
Promotion Authority legislative procedures. It continues the trend toward greater trade liberalization
and globalization, contains a new approach to imposing penalties for unresolvable environmental
and labor disputes; and may affect certain trade flows that would, in turn, affect U.S. businesses.
Since Singapore is a relatively small economy, the economic effects of the U.S.-Singapore Free
Trade Agreement, by themselves, are not likely to be great. The debate over implementation of the
FTA is falling between business and free trade interests who would benefit from more liberalized
trade, particularly in services, and labor or anti-globalization interests who oppose more FTAs
because of the overall impact of imports on jobs and the general effects of globalization on income
distribution, certain jobs, and the environment. Specific provisions of the agreement also have
generated debate. This report will be updated as circumstances warrant.
