Benefits of Bilateral Trade on Singapore

Free trade agreements are in force all over the world today. A free trade agreement is an “agreement between two or more countries where the countries agree on certain obligations that affect trade in goods and services, and protections for investors and intellectual property rights, among other topics” (www.naftanow.org, 2013). These agreements are essential for the countries if they want to trade goods and services with each other without having to be bothered with each other’s laws and regulations.

The countries involved in the free trade agreement are China, Japan, Korea, US, Germany, Thailand and Malaysia. Majority of the countries

Fifteen years ago, the United States entered an agreement with its neighboring countries, Canada and Mexico, to not only increase trade productivity for itself but, allot its sister nations to the north and south the same advantages. Although the North American Free Trade Agreement (NAFTA) has come with many benefits to our nation, it has also brought in many consequences. The United States is now facing similar challenges with Asian countries through the Trans Pacific Partnership (TPP). The significance of Free Trade Agreements on our economy has sparked a movement and is now currently one of the most widely debated topics in our country.

For instance, negotiators are working to set up rules on intellectual property rights, government procurement and the role of the state in private enterprise.” (LA times) The agreement spans more than 10 countries including the United States, Australia, Brunei, Chile, Malaysia, New Zealand, Canada, Peru, Singapore, Vietnam, Japan, Korea, and of course Mexico. The combined value of these countries represents almost 25 percent of the world’s trade and 45 percent of the world’s GDP (DePilis). Mexico has a lot to benefit by joining such a large free-trade pact and it isn‘t just the economic gains a US$180 billion TPP market.”(east asia). The benefits will not only be in monetary value but also in exposure to new markets all around the globe, which lead to benefits in many different areas “It will allow them be present in the Asia-Pacific region with preferential access to a market representing a potential market of 198 million consumers, without including NAFTA countries. It is an agreement that not only opens markets for them, but also will create long-term synergies and additional benefits such as taking advantage of the economic cycles of Australia, Singapore, Malaysia and Vietnam which are in turn related with the economies of China and India. There are studies that predict that the economic benefits of this integration could be reflected by

For business’ they benefit by having more markets in America, being able to have exports and investments, taxes are shown less, and to make a well balanced trade between other countries. Trading is an important part of the benefits because

It is also easy for many other companies to set up headquarter in Singapore as their starting point in Asia to make it possible to reach to its market point. In addition, Singapore is unique in different lifestyles and culture. It is also known for its capability of attracting sizable foreign investment, pro-business environment and entrepreneurs. Singapore focuses more on a knowledge based economy which can be seen in its education sysem. Furthermore, Singapore is located in the heart of Asia and it plays an important role in international

this trade agreement fully takes effect (Trans 2014). In regards to the Asia Pacific region, “The region is home to 40% of the world’s population, produces nearly 60% of global GDP, and includes some of the fastest growing economies in the world (Williams 2013).” Also, trade with United States of America is “…the equivalent of $1.6 billion a day in goods--… (US 2013).” In addition, “The United States is Canada's largest foreign

Singapore has a highly developed market which has historically revolved around extensive exports trade, in other words an export driven economy hugely dependant on export of goods to other countries.

Free trade areas, FTA, are economic integration arrangements in which barriers to trade (e.g. tariffs), exchange of goods and information among member nations are removed. It is arguable to say that fair trade aims to create equilibrium between LEDC's, less economically developed countries and developed nations in terms of trading activities and ethics. In saying this, free trading between more economically developed countries and LEDC's will mean

With foreign manufacturing industry entering Singapore market the manufacturing sector and its share in GDP grew from 16.6% in 1965 to nearly 30 % in 1980 and in 1993 manufacturing contributed to about 28 % of the total GDP and accounted for nearly 28% of employment. Singapore’s GDP raise to 13 times between 1960 and 1999. The nation has shown greatly decrease of figure of poverty. (United Nations 2000)

Globalization has become one of the most influential forces in the twentieth century. International integration of world views, products, trade and ideas has caused a variety of states to blur the lines of their borders and be open to an international perspective. The merger of the Europeans Union, the ASEAN group in the Pacific and NAFTA in North America is reflective of the notion of globalized trade. The North American Free Trade Agreement was the largest free trade zone in the world at its conception and set an example for the future of liberalized trade. The North American Free Trade Agreement is coming into it's twentieth anniversary on January 1st, 2014. 1 NAFTA not only sought to enhance the trade of goods and services across

Economic Diplomacy is quite functional at three levels: Regional, Multilateral and Bilateral Economic diplomacy which plays vital role in economic relations. It includes bilateral agreements on investment, taxation, employment, trade, as well as wide range of informal and formal economic issues between two or more countries. Bilateral trade agreements are being implemented by many countries in the world. Regional Cooperation in economic diplomacy is of growing importance. Economic Liberalization and National interests are well structured within the context of a particular region. Within a regional framework the removal of barriers and opening of markets became less

Recently Obama has been talking with South Korea about a free trade agreement. In this agreement it is likely to result in very few if any net jobs in the short run, according to the government. Although, “praising the deal reached by his trade negotiators, President Obama said on Monday that the accord would “boost our annual exports to South Korea by 11 billion” and “support at least 70,000 American jobs” (New York times). This deal will be very beneficial to industries including Detroit automakers and manufacturers of industrial and electronic equipment and high technology products. This type of deal would not only help out economy but provide many jobs for a lot of people out there looking for jobs. It would boost our economy and help out financially for those of low income.

This will boost the economy of Singapore as when more companies are willing to invest in Singapore, especially due to our strengths like competitive workforce and strategic location, it will result in greater influx of capital. It will also result in a creation of jobs for the people, boosting employment rate and generating revenue for both the country and the individual. Take for instance, the chip used in the latest PlayStation3 and Xbox. A French semiconductor company, Soitec, is investing $700 million to set up in Singapore its first offshore facility to make the wafer for this chip. The wafers involve alternating layers of silicon and insulator, unlike conventional wafers which use silicon throughout. Soitec is coming here because its technology has to be well-protected, and we are the only country in Asia that they trust well enough to set up their first manufacturing campus outside of France. Thus, positive development is a sure thing with globalization. Furthermore, since in the modern day context, money is a key indicator of happiness, thus, Singapore’s development can be mirrored by the happiness of the people with their monetary needs fulfilled.

Singapore has a capitalised mixed economy. Having strong international trade links, Singapore possesses one of the most open economies for international trade and investment. Singapore offers foreign investors a pro-business environment, excellent infrastructure, highly-skilled and cosmopolitan labour force, and a robust legal/judicial system. These competitive factors have set Singapore apart from other locations, winning several accolades including: §