US and Singapore Trade: Effects of TPP on US Economy

With the buzz going around for TPP and the effect on countries participating in the treaty, one can only think how TPP can affect US exports to other countries. If we take into consideration Singapore, the total July 2015 YTD export to Singapore was $16.65 Billion, a drop of 3.31% vs YTD July 2014. The biggest commodities exported from US to Singapore are Aircrafts and parts ($3.25billion YTD July 2015, up by 37% YoY), Nuclear reactors and its parts ($2.78 billion YTD July 2015, down 8.57% YTD) and Electric machinery, sound and TV equipment, parts etc. ($2.3 billion YTD July 2015, down 13.57% YoY). While these numbers bode well Aircraft manufacturing industries, we do not hope to see a bump in exports in Singapore as most of these items are already under Tax exemption due to previous FTA with US.

So what advantages does TPP have for US manufacturers vs the previous FTA? Will Singapore be a mass hub for further transportations to other Asian Countries? Alternatively, will Singapore be a mass DC for exports from and imports to US?

 

(Data courtesy https://usatrade.census.gov/)

 

 

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