For those interested in exporting, Singapore is a potential market to watch closely. Singapore has the second highest per capita income in Asia, one of the best economies in the ASEAN region, and one of the most liberal trade economies in the world, according to a USDA GAIN report. The country boasts trade advantages such as zero tariffs on food products (except alcohol) and an expedited customs process, which can be carried out electronically within less than 48 hours.

Since January of 1998, the North American Free Trade Agreement (NAFTA) has played a major role in the trade patterns between Canada and the United States, gradually eliminating all Canadian import duties on commercial and food products coming from the U.S. American products have an advantage over products from other countries required to pay tariffs and duties. As a result, the U.S. and Canada have one of the most expansive bilateral trading relationships in the world.

Nearly 4.8 million people inhabit the island of Singapore, which is strategically located between the intersections of major air and sea routes within the Asia Pacific region. The country acquires most of its wealth from oil, telecommunications systems and harbor facilities. However, due to the lack of indigenous food items and arable land, almost all of Singapore's population is reliant on imported food products. This has created a trend in foreign cuisine among Singaporeans that drives massive imports from the United States, China, Brazil, the European Union, Australia, and neighboring countries such as Indonesia, Malaysia, and Thailand.

The United States ranks among the top exporters to Singapore for food items such as poultry (mainly frozen chicken), fresh fruit, vegetables, frozen pork, fish and seafood. Live pigs for slaughter are only obtained from Indonesia, and the United States is only allowed to supply boneless beef from cattle less than two and a half years old, due to health concerns related to BSE or "Mad Cow Disease." Singaporeans prefer fresh as well as frozen seafood. In 2008 alone, Singapore imported $899 million in seafood from various countries. However, not all of the food imported is consumed within the country. On average, 25% of food brought into the nation is re-exported to neighboring countries.

Demographic changes currently taking place should be noted before establishing trade with Singapore. Below are a few of the changes taking place in the nation's economy that are influencing demand for imported U.S. products:

There are certain food products that can be considered an entry niche for interested parties. Because single-member households are growing and women are increasing their work hours, people are looking for convenient, healthy fare that is quick, affordable, and easy to prepare. Ready meals in Singapore grew by 3% in current value terms in 2009, for a total of $48 million. The current value growth for canned ready-to-eat meals reached a record high of 4% in 2009.

Surprisingly, Singaporeans enjoy Italian-style fare! Various types of Italian cuisine are the most popular item for frozen ready meals, dominating 47% of the market share, with chilled ready pasta dishes dominating 87%. The sweet and savory snack sector also recorded high sales for 2009, increasing current value growth by 2%. Canned and preserved ready meals are also a great choice for exporters since they have a longer shelf life and are a more affordable option than frozen foods.

For southern U.S. companies, the prospect of doing business with Singapore looks positive. Many of the food products associated with the southern U.S., such as fruits, vegetables, and seafood, are in high demand. Also, there is interest in sweet and savory snacks, a food sector of which many southern U.S. producers may be able to take advantage. For more information on SUSTA activities in Singapore, visit www.susta.org/events.

~By Lia Threat, SUSTA Intern

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