The United States and Singapore have a close and cooperative trade relationship, which is underpinned by The United States-Singapore Free Trade Agreement (FTA)that entered in force on January 1, 2004. The agreement has functioned generally smoothly, with trade and investment growing significantly in both directions. The latest information regarding significant trade barriers can be found in the 2021 National Trade Estimate Report, see here.
Singapore Trade & Investment Summary
U.S. goods and services trade with Singapore totaled an estimated $122.7 billion in 2022. Exports were $80.5 billion; imports were $42.2 billion. The U.S. goods and services trade surplus with Singapore was $38.3 billion in 2022.
U.S. goods exports to Singapore in 2022 were $46.2 billion, up 30.5 percent ($10.8 billion) from 2021 and up 51 percent from 2012. U.S. goods imports from Singapore totaled $31.6 billion in 2022, up 6.7 percent ($2.0 billion) from 2021, and up 56 percent from 2012. U.S. exports to Singapore account for 2.2 percent of overall U.S. exports in 2022. The U.S. goods trade surplus with Singapore was $14.6 billion in 2022, a 152.3 percent increase ($8.8 billion) over 2021.
U.S. exports of services to Singapore were an estimated $34.3 billion in 2022, 7.7 percent ($2.5 billion) more than 2021, and 150 percent greater than 2012 levels. U.S. imports of services from Singapore were an estimated $10.6 billion in 2022, 11.3 percent ($1.1 billion) more than 2021, and 66 percent greater than 2012 levels. Leading services exports from the U.S. to Singapore were in the research and development services, professional and management services, and intellectual property sectors. The United States had a services trade surplus of an estimated $23.7 billion with Singapore in 2022, up 6.1 percent from 2021.
U.S. foreign direct investment (FDI) in Singapore (stock) was $309.4 billion in 2022, a 8.7 percent increase from 2021. U.S. direct investment in Singapore is led by nonbank holding companies, manufacturing, and wholesale trade.
Singapore's FDI in the United States (stock) was $36.9 billion in 2022, up 23.4 percent from 2021. Singapore's direct investment in the U.S. is led by manufacturing, real estate, and wholesale trade.
As an expert with a profound understanding of international trade and economic relations, I bring forth a wealth of knowledge to shed light on the intricate dynamics between the United States and Singapore. My expertise is rooted in a comprehensive grasp of trade agreements, economic indicators, and the nuanced details that shape global commerce.
The cornerstone of the robust trade relationship between the United States and Singapore lies in the United States-Singapore Free Trade Agreement (FTA). This pivotal agreement, which came into force on January 1, 2004, has been a linchpin in fostering a close and cooperative trade alliance. Its impact is palpable in the continuous growth of trade and investment in both directions.
To substantiate the significance of this relationship, let's delve into the compelling evidence from the 2021 National Trade Estimate Report. This report provides a comprehensive overview of the trade landscape, offering insights into the challenges and opportunities within this economic alliance.
Now, turning to the specifics of the U.S.-Singapore trade and investment scenario in 2022, the numbers paint a vivid picture. The total goods and services trade between the two nations amounted to a staggering $122.7 billion. This comprises $80.5 billion in exports and $42.2 billion in imports, resulting in a substantial U.S. goods and services trade surplus of $38.3 billion.
The trade data for goods is equally compelling. U.S. goods exports to Singapore in 2022 reached $46.2 billion, witnessing a remarkable 30.5 percent increase from the previous year. Meanwhile, U.S. goods imports from Singapore totaled $31.6 billion, reflecting a 6.7 percent growth.
The services sector is a noteworthy contributor to this economic synergy. U.S. exports of services to Singapore in 2022 stood at an estimated $34.3 billion, marking a 7.7 percent increase from 2021. Conversely, U.S. imports of services from Singapore were estimated at $10.6 billion, showing an 11.3 percent growth.
The composition of services exports reveals key sectors such as research and development services, professional and management services, and intellectual property leading the way. With a services trade surplus of $23.7 billion in 2022, the United States has solidified its position as a significant services exporter to Singapore.
Moving beyond trade statistics, foreign direct investment (FDI) plays a pivotal role in this bilateral relationship. U.S. FDI in Singapore reached $309.4 billion in 2022, showcasing an 8.7 percent increase from the previous year. Conversely, Singapore's FDI in the United States amounted to $36.9 billion in 2022, reflecting a substantial 23.4 percent growth.
The sectors driving these investments include nonbank holding companies, manufacturing, and wholesale trade for U.S. FDI in Singapore, while Singapore's direct investment in the U.S. is led by manufacturing, real estate, and wholesale trade.
In conclusion, the evidence presented paints a comprehensive picture of the intricate and flourishing trade and investment relationship between the United States and Singapore. The enduring success of the United States-Singapore Free Trade Agreement serves as a testament to the collaborative efforts and mutual benefits derived from this strategic economic partnership.
