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Dependency Theory in Free Trade Agreements - Term Paper Example

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The author concludes that FTA for Asian countries still remains an advantageous offer as it brings about liberalization and spurs economic development. For instance, the main motivation for Singapore to sign FTA was not to do away with US trade barriers but rather to bring in foreign investors…
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Dependency Theory in Free Trade Agreements
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Download file to see previous pages 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. This is expected to generate by-product for the local chemical industry which produces synthetic fibers such as lycra and rayon. (Tony Sitathan) At the same time, the producers of these products bring foreign investment into Singapore. Singapore is now the third largest recipient of U.S. foreign direct investment in the Asia-Pacific, after Australia and Japan. The FTA also has helped to add momentum to Singapore's initiatives to develop as a regional and global hub for medical technology, financial services, and transport and shipping. ...Download file to see next pagesRead More
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