Singapore

The U.S.-Singapore Free Trade Agreement (FTA) was the first comprehensive U.S. FTA with an Asian country. Since the FTA entered into force in 2004, exports from the United States have increased 73 percent with steady growth in medical devices, electrical and non-electrical machinery and construction equipment, and pharmaceuticals.

In September 2008, the United States announced its intention to begin negotiations to join the Trans-Pacific Strategic Economic Partnership (TPP) agreement, a high-standard FTA between Singapore, Chile, New Zealand, and Brunei Darussalam, intended to serve as a vehicle for Trans-Pacific economic integration. Shortly after the U.S. decision to join the negotiations, Australia, Peru, and Vietnam indicated their interest in participating as well. A public hearing on TPP was held on March 4, 2009.

The Administration is currently reviewing its overall trade strategy, including the TPP.

In October 2008, U.S. and Singaporean government officials held the fourth annual review of the FTA. They noted that implementation remained on track and welcomed the growth in bilateral trade and investment since the FTA came into force.

They also discussed implementation issues, including relating to telecommunications and other service sectors, environmental cooperation, and Intellectual Property Rights (IPR) enforcement.

U.S.-Singapore Trade Facts

U.S. goods and services trade with Singapore totaled $56 billion in 2007 (latest data available). Exports totaled $34 billion; Imports totaled $22 billion. The U.S. goods and services trade surplus with Singapore was $11 billion in 2007.

Singapore is currently our 16th largest goods trading partner with $43.7 billion in total (two ways) goods trade during 2008. Goods exports totaled $27.9 billion; Goods imports totaled $15.9 billion. The U.S. goods trade surplus with Singapore was $12.0 billion in 2008.

Trade in services with Singapore (exports and imports) totaled $11.1 billion in 2007 (latest data available). Services exports were $7.2 billion; Services imports were $3.9 billion. The U.S. services trade surplus with Singapore was $3.3 billion in 2007.

Exports

Singapore was the United States' 12th largest export market in 2008.

U.S. goods exports to Singapore in 2008 were $27.9 billion, up 6.0% ($1.6 billion) from 2007, and up 114% from 1994 (the year prior to Uruguay Round). U.S. exports to Singapore are up 68.2% from 2003 (Pre-FTA). U.S. exports to Singapore accounted for 2.2% of overall U.S. exports in 2008, down from 2.5% in 1994.

The top export categories (2-digit HS) in 2008 were: Machinery ($7.8 billion), Electrical Machinery ($6.6 billion), Aircraft ($3.1 billion), Mineral Fuel (oil) ($2.3 billion), and Optic and Medical Instruments ($1.8 billion),

U.S. exports of agricultural products to Singapore totaled $485 million in 2008. Leading categories include: poultry meat ($46 million), processed fruit and vegetables ($41 million), and dairy products ($39 million).

U.S. exports of private commercial services* (i.e., excluding military and government) to Singapore were $7.2 billion in 2007 (latest data available), 10.6% ($856 million) less than 2006 and 173% ($4.6 billion) greater than 1994 levels. The other private services (business, professional and technical services) and the royalties and license fees categories accounted for most of U.S. exports in 2007.

Imports

Singapore was the United States' 27th largest import market in 2008.

U.S. goods imports from Singapore totaled $15.9 billion in 2008, a 13.6% decrease ($2.5 billion) from 2007, but up 3.4% over the last 14 years. U.S. imports from Singapore are up 4.9% from 2003 (Pre-FTA).

The five largest import categories in 2008 were: Machinery ($5.4 billion), Electrical Machinery ($3.0 billion), Pharmaceutical Products ($1.9 billion), Special Other (returns) ($1.6 billion), and Optic and Medical Instruments ($1.4 billion).

U.S. imports of agricultural products from Singapore totaled $133 million in 2008. Leading categories include: cocoa paste and cocoa butter ($65 million), and snack foods (including chocolate) ($16 million).

U.S. imports of private commercial services* (i.e., excluding military and government) were $3.9 billion in 2007 (latest data available), up 5.8% ($213 million) from 2006, and up 236% ($2.8 billion) from 1994 level. The other private services (business, professional, and technical services) and transportation categories led U.S. services imports from Singapore.

Trade Balance

The U.S. goods trade surplus with Singapore was $12.0 billion in 2008, up 51.7% ($4.1 billion) from 2007.

The United States has a services trade surplus of $3.3 billion with Singapore in 2007.

Investment

U.S. foreign direct investment (FDI) in Singapore (stock) was $82.6 billion in 2007 (latest data available), a 5.3% increase from 2006.

U.S. direct investment in Singapore is primarily concentrated in nonbank holding companies and the manufacturing sectors.

Singapore FDI in the United States (stock) was $10.2 billion in 2007 (latest data available), a 90.3% increase from 2006.

Reported Singapore direct investment in the U.S. is led by the real estate and rental and leasing and banking sectors.

Sales of services in Singapore by majority U.S.-owned affiliates were $19.3 billion in 2006 (latest data available), while sales of services in the United States my majority Singapore-owned firms were $2.5 billion.