NCC Comments on Singapore FTA Negotiation

December 27, 2000

National Cotton Council President Bob McLendon has urged U.S. officials to make certain that any free trade agreement with Singapore include rules of origin for textiles that are no less restrictive than those in North American Free Trade Agreement (NAFTA). McLendon also stressed what NCC considers the importance of securing reciprocal market access for both countries.

He expressed concern, however, that even with NAFTA rules of origin, a Singapore agreement could lead to other free trade arrangements with additional trading partners in Asia that could create new disadvantages for U.S. cotton. In a letter to U.S. negotiators, he voiced concern that U.S. trade negotiating policy that results in major textile-producing countries such as Indonesia, Korea, Vietnam, China, Pakistan and India exporting textiles quota-free and duty-free to the United States would harm the U.S. textile industry and U.S. cotton producers.

With textile quotas due to expire by 2005, the U.S. textile industry must rely on tariff levels negotiated within WTO as the sole source of protection from textile imports. McLendon warned that the economic impact of a WTO agreement would be significantly altered if textile tariffs were suddenly eliminated with respect to industry's major competitors.

The United States and Singapore held negotiations for a FTA Dec. 4-21 in Washington. The U.S. delegation was led by Ralph Ives, assistant U.S. trade representative for Asia and the Pacific. The Singapore delegation was led by Tommy Koh, ambassador-at-large.

Both sides said they are committed to achieving a strong, comprehensive and mutually-beneficial agreement that would promote bilateral trade and investment between both nations. The two countries also reaffirmed a common belief that a U.S.-Singapore FTA will reinforce the momentum of regional and global trade liberalization processes among the Asia-Pacific Economic Cooperation (APEC) countries and in the World Trade Organization (WTO).

Negotiations are to resume again early next year.