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Free Trade Agreements - Essay Example
Free Trade Agreements ("FTAs") are mutual, bilateral agreements between countries that are intended to open markets and eliminate trade barriers on goods, services, and agricultural products. The United States has negotiated FTAs with countries around the world, which offer numerous benefits to companies taking advantage of these agreements…
The Agreement, which entered into force on January 1, 2004, is the United States' first FTA with an Asian nation and the first FTA signed by President Bush. The U.S.-Singapore FTA expands U.S. market access in goods, services, investment, government procurement, intellectual property, and also promotes labor rights and the environment. This FTA further develops an already well-built commercial relationship with American's 12th largest trading partner This FTA will serve as the foundation for other possible FTAs in Southeast Asia.
Singapore hereby saves more than $115 million annually in tariff cuts since the United States is Singapore's second-largest export market. It also generates thousands of jobs in the service, support and manufacturing industries and induces more US companies and their investments to come to Singapore. It also has an economic offshoot to the other region besides Singapore as the US would be looking for similar deals with the rest of the Asian countries.
It also helps Singapore garment exports compete more effectively against those made in China or Indonesia. One advantage of the restructuring of the local textile/apparel industry is the greater use of synthetic fibers. ...