VZCZCXRO4887
RR RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHGP #1833/01 2760147
ZNR UUUUU ZZH
R 030147Z OCT 07
FM AMEMBASSY SINGAPORE
TO RUEHC/SECSTATE WASHDC 4146
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEAWJA/DEPT OF JUSTICE WASHDC
RUEAORC/US CUSTOMS AND BORDER PROTECTION WASHINGTON DC
RUCNASE/ASEAN MEMBER COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 2633
RUEHBY/AMEMBASSY CANBERRA 1972
RUEHUL/AMEMBASSY SEOUL 4093
RUEHKO/AMEMBASSY TOKYO 5692

UNCLAS SECTION 01 OF 03 SINGAPORE 001833 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
STATE PASS USTR FOR BWEISEL, DBELL, JMCHALE, MLINSCOTT, VESPINEL, 
AND AMATTICE 
COMMERCE FOR JBAKER 
 
E.O. 12958: N/A 
TAGS: ETRD EFIN EINV ECPS SENV KIPR ECON SN
SUBJECT: FTA IMPLEMENTATION ON DAUSTR BELL'S AGENDA 
 
REFS:  A) Singapore 996 B) Singapore 1134 C) Singapore 1167 
 
¶1.  (SBU) Summary:  In meetings to discuss implementation progress 
under the U.S.-Singapore Free Trade Agreement (FTA), Deputy 
Assistant U.S. Trade Representative Doug Bell cited Singapore's 
failure to fulfill its telecom commitments as our top concern.  GOS 
officials agreed that additional flexibility is needed to resolve 
this longstanding issue.  On IPR protection, Singapore said it is 
still considering the merits of signing the Anti-Counterfeiting 
Trade Agreement (ACTA).  In response to a request to join a regional 
dialogue on illegal logging, GOS officials said they are "perplexed" 
about how Singapore can play a role as an intermediary transshipment 
point.  DAUSTR Bell also raised FTA-related issues related to the 
energy sector, financial services, and regional trade liberalization 
initiatives.  End summary. 
 
¶2.  (U) DAUSTR Bell focused on implementation of the FTA and 
regional trade issues during his initial visit to Singapore 
September 11-12.  In addition to his discussions with GOS officials 
from the Ministry for Trade and Industry (MTI), the Ministry for 
Environment and Water Resources (MEWR), the Infocomm Development 
Authority (IDA), and the Energy Market Authority (EMA), he also met 
with Verizon Business, Island Power (Intergen), Citibank, Hewlett 
Packard, United Parcel Service, the Singapore Association of 
Pharmaceutical Industries (SAPI), the American Chamber of Commerce, 
and representatives from intellectual property business 
associations.  DAUSTR Bell's discussions on ASEAN are reported 
septel. 
 
Telecom - Tandem Access 
----------------------- 
 
¶3.  (SBU) DAUSTR Bell told IDA Acting Director (International) 
Hanafiah Muhammed (and MTI Director for Trade Lionel Yeo separately) 
that Singapore's failure to fulfill its telecom commitments remains 
our top FTA implementation concern.  He underscored that offering 
high-speed tandem access (i.e., access to dominant carrier SingTel's 
leased lines at economically efficient points of aggregation) is 
consistent with Singapore's FTA obligations; tandem access stands 
out as the best solution to ensure that telecom providers receive 
fair and equitable treatment.  DAUSTR Bell emphasized that the USG 
takes little comfort in GOS officials' recent statements that the 
access issue will "go away" after Singapore deploys its "Next 
Generation" and "Intelligent Nation 2015" (iN2015) broadband and 
infocomm networks.  Singapore still needs to meet its current FTA 
obligations and the government's track record on telecom to date 
casts doubt on how effectively it will address access issues in the 
future, he said.  Director Muhd asserted that Singapore's obligation 
under the FTA is to provide "reasonable" but not tandem access.  He 
defined "reasonable" as encompassing areas such as regulated rates 
and groomed circuits.  DAUSTR Bell countered that this obligation 
also implied that it make available the same type of access for all 
telecom players.  Singapore providers in the United States, for 
example, enjoy a tandem access option. 
 
Telecom - Local Exchange Closures 
--------------------------------- 
 
¶4.  (SBU) DAUSTR Bell expressed his appreciation for Singapore's 
recent decision to extend the notification period for SingTel to 
inform IDA about planned local exchange closures.  But he questioned 
why SingTel continues to remain silent on its planned consolidation, 
first announced in June 2006 (ref B).  Director Muhammed said that 
SingTel has not yet communicated its intentions to IDA.  He wondered 
whether, as a regulator, IDA might be able to require SingTel to 
provide a guarantee that it would not close a certain local exchange 
as a way to ensure some certainty of access and availability to 
other telecom providers.  DAUSTR Bell welcomed further discussions 
of this kind, noting that it is important for both sides to seek 
solutions that conform to all FTA commitments. 
 
Telecom - Multilateral Cooperation 
---------------------------------- 
 
¶5.  (SBU) Director Muhammed asked for USTR's advice on how best to 
use platforms like the ASEAN Telecom, Telecom Council, and IT annual 
meetings to improve regional telecom regulators' knowledge of trade 
rules and regulations.  DAUSTR Bell said he would follow up with a 
response in the next several weeks.  Muhammed cautioned that some 
 
SINGAPORE 00001833  002.2 OF 003 
 
 
resistance to the USG's efforts under the ASEAN-U.S. Enhanced 
Partnership exists, especially among Malaysia, Thailand, and 
Vietnam.  He suggested that the USG seek more input from ASEAN 
members before developing a full proposal.  Singapore can play a 
role in encouraging other countries to support such initiatives, he 
offered. 
 
Information Technology Agreement 
-------------------------------- 
 
¶6.  (SBU) DAUSTR Bell expressed concern that the European Union is 
unwilling to back down from its plan to pursue changes in the 
Information Technology Agreement (ITA).  He noted that the EU 
proposal would result in tariff increases from zero to fourteen 
percent -- affecting approximately US$200 million of Singapore's 
exports to the EU.  He said that USTR is likely to ask for WTO 
consultations and hopes that Singapore will join the United States 
in this process.  MTI Senior Assistant Director (Trade) Alpana Roy 
noted that MTI Minister LIM Hng Kiang recently told USTR Schwab that 
Singapore is willing to engage the EU on this issue. 
 
Intellectual Property 
--------------------- 
 
¶7.  (SBU) DAUSTR Bell urged the GOS to proceed with a planned 
digital video conference to discuss intellectual property rights 
(IPR) issues raised during the FTA review in May, in particular our 
desire for Singapore to join the Anti-Counterfeiting Trade Agreement 
(ACTA) and to clarify Singapore's law governing Internet 
rebroadcasts (i.e., simulcasts).  Senior Assistant Director Roy said 
that the Ministry of Law is still evaluating the ACTA proposal; 
MinLaw was particularly interested in receiving a read-out of the 
USG's recent ACTA discussions with Japan. 
 
Regional Illegal Logging Initiative 
----------------------------------- 
 
¶8.  (SBU) DAUSTR Bell asked Singapore to join a regional dialogue on 
illegal logging and associated trade and delivered a nonpaper 
formalizing this request.  Building on the bilateral initiative 
between the United States and Indonesia, as well as discussions with 
Malaysia, the Philippines, and China, the USG believes that a 
multilateral approach will be more effective to combat illegal 
logging, he said.  Director Yeo noted that Singapore is concerned 
about illegal logging, but more from an environmental protection 
perspective.  Singapore feels "powerless" to control the trade in 
timber since this is an issue that must be addressed at points of 
origin and points of demand, not at an intermediary port, he 
claimed.  Singapore will enforce its laws, but it remains 
"perplexed" about how it can play a role in this process.  DAUSTR 
Bell said that it is important that countries involved at all 
aspects of the timber trade come together to discuss their 
respective competencies and to exchange ideas about possible 
solutions.  Director Yeo did not make any commitments, but said MTI 
will consider the regional dialogue proposal. 
 
Energy - Island Power 
--------------------- 
 
¶9.  (SBU) DAUSTR Bell expressed his hope that the Energy Market 
Authority (EMA) can move quickly to clear the remaining obstacles 
that continue to prevent Island Power -- a subsidiary of Intergen, a 
U.S. company -- from bringing its multimillion dollar power 
generation investment to fruition.  An EMA representative said that, 
although Parliament had passed the Gas Act in May, the approval 
process for Island Power must proceed slowly to allow sufficient 
time for the new legislation to be implemented (ref C). 
 
Credit Cards and ATMs 
--------------------- 
 
¶10.  (SBU) DAUSTR Bell told Director Yeo that USTR has received 
inquiries from industry about ATM access for individuals using 
credit cards issued locally by foreign banks.  Although the issue 
might not raise FTA-specific questions, he suggested that the GOS 
consider additional outreach to address consumer and provider 
uncertainties.  The USG also may want to consider a more formal 
Financial Services Committee process facilitated by Treasury to 
discuss a broad range of technical sectoral issues and follow up on 
 
SINGAPORE 00001833  003 OF 003 
 
 
financial services consultations agreed to in the FTA.  Director Yeo 
said he would convey industry's concerns to Monetary Authority of 
Singapore officials and provide an appropriate point of contact. 
 
Regional FTA Initiatives 
------------------------- 
 
¶11.  (SBU) DAUSTR Bell raised the possibility of holding exploratory 
talks in Washington in October on regional liberalization 
initiatives and possible U.S. involvement in the P-4 Agreement 
between Singapore, Brunei, New Zealand, and Chile.  Director Yeo 
said that Singapore welcomes such discussions. 
 
¶12.  (U) DAUSTR Bell cleared this message. 
 
SHIELDS