SINGAPORE: TRADE AGREEMENT MONITORING AND

UNCLAS SECTION 01 OF 02 SINGAPORE 003145

SIPDIS

SIPDIS

STATE FOR EB/TPP/MTA EKOCH
STATE PASS USTR FOR JJENSEN AND HIRSH
COMMERCE FOR TCC/4110
USDA FOR ITP/FAS/BERTSCH

E.O. 12356: N/A
TAGS: ETRD ECON EINV SN
SUBJECT: SINGAPORE: TRADE AGREEMENT MONITORING AND
COMPLIANCE

REF: STATE 152063


1. The following responds to reftel questions concerning
our efforts to monitor trade agreements and to respond to
trade barrier complaints from U.S. businesses and other
sources.


2. DESCRIPTION OF HOW POST IS CURRENTLY ORGANIZED FOR
MONITORING AGREEMENTS AND RESPONDING TO FOREIGN TRADE
BARRIER COMPLAINTS, INCLUDING THE ESTABLISHMENT OF TEAMS AT
POSTS.

The U.S.-Singapore Free Trade Agreement (FTA) came into
effect January 1, 2004. It includes several phased-in
commitments related to intellectual property (implemented
in 2004 and 2005),financial services (being implemented
through 2008),and a new competition law (being implemented
through 2007). For both compliance monitoring and
complaint response, we employ a team approach that entails
regular communication and coordination among relevant
sections and agencies, including the Economic/Political and
Public Affairs sections, FCS, FAS, and DHS. We remain in
close communication with concerned agencies in Washington,
including USTR, Commerce, Agriculture, and State. Our Law
Enforcement Council (LEC),which meets biweekly and is
chaired by the DCM, is an additional vehicle for tracking
compliance and complaint-related issues. Ensuring that
Singapore fulfills commitments on customs and environmental
cooperation can enhance bilateral law enforcement
cooperation, particularly in detecting and interdicting
illegal shipments.


3. NAME OF A CONTACT PERSON AT POST TO COORDINATE POSTQS
PERIODIC COMPLIANCE REPORTING, FIELD GENERAL COMPLIANCE
INQUIRIES, AND ENSURE COMPLAINTS ARE REPORTED PROMPTLY TO
RELEVANT WASHINGTON AGENCIES.

Overall Compliance and Complaint Coordinating Officer:

Paul Horowitz
Senior Economic Officer and Economic Unit Chief
Tel: +65 6476 9344
Fax: +65 6476 9389
e-mail: HorowitzPD@state.gov

Foreign Commercial Service:

Scott Pozil
Deputy Commercial Officer
Tel: +65 6476 9435
Fax: +65 6476 9080
e-mail: Scott.Pozil@mail.doc.gov

Foreign Agriculture Service:

Jonathan Gressel
Agricultural Counselor (resident in Kuala Lumpur)
Tel: +603 2168 5082
Fax: +603 2168 5023
e-mail: Jonathan.Gressel@USDA.gov


4. DESCRIPTION OF COMPLAINT RESPONSE ACTIVITIES AT POST,
INCLUDING EXAMPLES OF RECENT COMPLIANCE SUCCESSES AND
ONGOING COMPLIANCE ISSUES.

With some exceptions, SingaporeQs implementation of its FTA
commitments has proceeded smoothly. During the first 18
months of the FTA, for example, we worked closely with USTR
to ensure that Singapore was in full compliance with its
legal and regulatory obligations for the protection of
intellectual property. This involved regular dialogue with
Singapore government officials, at both the working and
senior levels, and resulted in additional amendments to
SingaporeQs Copyright Act. Some U.S. companies continue to
complain about copyright and trademark infringements by
Singaporean companies; in most cases, these disputes have
been resolved amicably. The majority of U.S. firms find
Singapore's strong IPR regime an attractive element of
doing business here. Citing IPR protection as a key
consideration, several companies, among them Lucas Films,
Schering-Plough, Dell, Sybase, and Welch Allyn, recently
decided to make new or enlarge investments here.


5. We used SingaporeQs FTA commitment to conform with the
WTO Sanitary and Phytosanitary (SPS) Agreement as leverage

SINGAPORE 00003145 002 OF 002


to re-open the countryQs market to boneless cuts of U.S.
beef in January 2006. This entailed multiple discussions
between USDA, State, USTR, and SingaporeQs food safety
officials, and senior-level visits by both sides. We are
currently working on access for bone-in cuts of U.S. beef,
as well as variety meats. However, despite repeated
interventions by USDA and the Embassy, Singapore continues
to apply non-science-based standards for salmonella and
staph aureus in raw meats, and misapplies Codex testing
guidelines for canned soup that have harmed U.S. exports.
We expect to raise these issues in the annual FTA review.


6. We continue to press Singapore to comply with its
telecommunications-related FTA commitments. In particular,
SingaporeQs regulator has failed to fully implement
requirements (first issued in December 2003) that would
give U.S. carriers access to local-leased (or "last mile")
circuits comparable to that available to the dominant
carrier, SingTel. Ongoing discussions, including at our
first and second annual reviews of the FTA, have yielded
positive results in terms of SingaporeQs wholesale pricing
obligations, but access issues remain unresolved.


7. DESCRIPTION OF PROACTIVE MONITORING EFFORTS AT POST.

In addition to the LEC and other coordinating activities,
we employ a variety of tools to ensure proactive monitoring
of the FTA. The Economic Unit maintains an "FTA
Implementation Matrix." This 20-page spreadsheet tracks
each of SingaporeQs key FTA commitments according to
relevant FTA articles and annexes, the implementing
Singapore government agency, and the progress made in each
area. USTR uses this document to prepare for our annual
FTA reviews. We continually monitor SingaporeQs regulatory
and legal changes relevant to the FTA, many of which are
issued in draft form for public comment, and alert
Washington to these developments.


8. We take advantage of regular visits by Washington
officials to raise FTA compliance and complaint issues with
the Singapore government. Recent visitors such as USTR
Schwab, DUSTR Bhatia, Commerce Deputy Secretary Sampson,
and USDA Deputy Under Secretary Lambert all emphasized the
importance of full FTA implementation.


9. Congressionally mandated annual reports such as the
National Trade Estimates Report of Foreign Trade Barriers,
the Investment Climate Statement, the Special 301 Report
(IPR),the 1377 Review of Telecommunications Trade
Agreements, and USDAQs Global Agriculture Information
Network (GAIN) offer regular opportunities to assess
Singapore's progress in fulfilling its FTA obligations.
FTA implementation is a key performance indicator in our
Mission Performance Plan. We also consult regularly with
U.S. business representatives, the local American Chamber
of Commerce, and the U.S.-ASEAN Business Council.

FERGIN