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Generally, the USSFTA will assist the exporters in both countries through enhanced market opportunities, and provide investors with greater certainty through provisions dealing with the protection and promotion of investment. Singapore is also a major trading partner of the US. In 2002, Singapore was the US’s 12th largest trading partner.
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However, it is noted that trade between the two countries has declined significantly from 2000 when it hit a height of US$42 billion.
In fact, bilateral trade recorded consecutive year-on-year contraction after 2000 during which an impressive growth of 9.6% was achieved. In addition, the share of US-Singapore trade in Singapore’s global trade has been on a downward track since 1998 when it reached nearly 20%. The retreat of the US-Singapore trade generally reflects the conditions of the broader global economy. Notwithstanding the dull picture in the past two years, the US is still an important strategic and trading partner for Singapore. Increased in overall trade activities due to potential duty saving totalling an estimated $300 million a year for Singapore firms exporting to the US.