Singapore Expects Tax Savings Of $300 Million As Result Of FTA With United States

by Mike Godfrey, Tax-News.com, Washington

21 November 2002

Speaking following a joint press conference held on Tuesday to announce the conclusion of talks between the United States and Singapore on their forthcoming free trade agreement (FTA), Professor Tommy Koh suggested that Singapore's exporters are set to benefit from substantial tax savings once the agreement is signed into law.

Professor Koh, who is a respected academic and diplomat as well as acting as Singapore's chief negotiator for the FTA, told reporters that, according to Ministry of Trade and Industry estimations: 'tax savings for Singapore could amount to approximately $300 million or more a year in goods.'

Also speaking at the press conference, MMS International economist, David Cohen expressed optimism for the future of the Singaporean economy under the free trade agreement:

'The removal of tariffs will lower the price of goods sold to the US. This will enhance Singapore's competitiveness,' he explained, adding that: 'That should raise demand for made-in-Singapore products. More foreign sales will also boost production here.'

Speaking with regard to the negotiations in early October, US Trade Representative, Robert Zoellick announced that he expected to be able to take advantage of the new fast-track trade negotiating authority gained when Congress passed the Trade Promotion Authority Act, to sign a deal with Singapore in early 2003.

Under the fast-track rules, following the conclusion of the talks, Congress has to vote on the enabling bill in its entirety, and can't pick it apart or use it to piggy-back extraneous legislation in exchange for votes.

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