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United States-Singapore Free Trade Agreement |
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ANNEX 10B
PART I: UNITED STATES SCHEDULE OF NON-CONFORMING MEASURES WITH RESPECT TO BANKING AND OTHER FINANCIAL SERVICES
(EXCLUDING INSURANCE) A. Headnotes
and in Section B below.
applicable. A domestic bank subsidiary of a foreign firm will have its own “home state,” and national treatment will be provided based upon the subsidiary’s home state, as determined under applicable law.1
other financial services (excluding insurance) and constituted under the laws of the United States are subject to non-discriminatory limitations on juridical form. 2
in the following manner: Article 10.9.1(c) shall apply only to non-conforming measures relating to 10.4(a) and not to those non-conforming measures relating to Article 10.4(b).
1 Foreign banking organizations are generally subject to geographic and other limitations in the United States on a national treatment basis. Where
such limitations do not conform to national treatment, they have been reserved as market access restrictions. For purposes of illustration, under this approach,
the following situation does not accord national treatment and would therefore be scheduled as a limitation: a foreign bank from a particular home state is accorded less favorable treatment than that accorded to a domestic bank from that state with respect to expansion by branching.
2 For example, partnerships and sole proprietorships are generally not acceptable juridical forms for depository financial institutions in the United
States. This headnote is not itself intended to affect, or otherwise limit, a choice by a financial institution of the other Party between branches or subsidiaries.
10B-United States-1
Obligations Concerned
Description of Non-Conforming Measures
All directors of a national bank must be U.S. citizens, except that the Comptroller of the Currency
may waive the citizenship requirement for not more than a minority of the total number of directors.
Measure: 12 U.S.C. 72 X X
Foreign ownership of Edge corporations is limited to foreign banks and U.S. subsidiaries of foreign banks, while domestic non-bank firms may own such corporations. Measure: 12 U.S.C. 619
Federal and state law do not permit a credit union, savings bank, or savings association (both of the latter two entities may be also called thrift institutions) in the United States to be provided through
branches of corporations organized under a foreign country’s law. Measures: 12 U.S.C. 1463 et X
seq. & 12 U.S.C. 1751 et seq. X
In order to accept or maintain domestic retail deposits of less than $100,000, a foreign bank must
establish an insured banking subsidiary. This requirement does not apply to a foreign bank branch that was engaged in insured deposit -taking activities on December 19, 1991. Measure: 12 U.S.C.
3104(d) X
Foreign banks are required to register as investment advisers under the Investment Advisers Act of
1940 to engage in securities advisory and investment management services in the United States, while domestic banks (or a separately identifiable department or division of the bank) are exempt from registration unless they advise registered investment companies. The registration requirement involves record maintenance, inspections, submission of reports and payment of a fee. Measure: 15
U.S.C. 80b-2, 80b-3 X X
10B-United States-2
Description of Non-Conforming Measures
Foreign banks cannot be members of the Federal Reserve System, and thus may not vote for
directors of a Federal Reserve Bank. Foreign-owned bank subsidiaries are not subject to this
measure. Measure: 12 U.S.C. 221, 302, 321 X
The United States undertakes no commitment with respect to paragraph (b) of Article IV of the Agreement in relation to the expansion, via the establishment of a branch or the acquisition of one or more branches of a bank without acquis ition of the entire bank, by a foreign bank into another state from its “home state,” as that term is defined under applicable law. Except as specifically set forth elsewhere in this schedule, such expansion shall be provided on a national treatment basis in accordance with headnote 2.
Measure: 12 U.S.C. 36(g); 12 U.S.C. 1828(d)(4); 12 U.S.C. 1831u(a)(4)
X
Interstate expansion by a foreign bank through the establishment of branches by merger with a bank located outside the “home state,” as that term is defined under applicable law, of a foreign bank shall
be provided on a national treatment basis in accordance with headnote 2, except as specifically set
forth elsewhere in this schedule. Measure: 12 U.S.C. 1831u X
Establishment of a federal branch or agency by a foreign bank is not available in the following states that may prohibit establishment of a branch or agency by a foreign bank:
• Branches and agencies may be prohibited in Alabama, Kansas, North Dakota, and Wyoming.
• Branches, but not agencies, may be prohibited in Delaware, Florida, Georgia, Idaho, Louisiana, Mississippi, Missouri, Oklahoma, and West Virginia.
Measures: 12 U.S.C. 3102(a)(1); 12 U.S.C. 3103(a)
Certain restrictions on fiduciary powers apply to federal agencies.
Measure: 12 U.S.C. 3102(d) X X
The authority to act as a sole trustee of an indenture for a bond offering in the United States is
subject to a reciprocity test. Measure: 15 U.S.C. 77jjj(a)(1) X X
Designation as a primary dealer in U.S. government debt securities is conditioned on reciprocity.
10B-United States-3
Description of Non-Conforming Measures
Measure: 22 U.S.C. 5341-5342 X X
A broker-dealer registered under U.S. law that has its principal place of business in Canada may maintain its required reserves in a bank in Canada subject to the supervision of Canada. Measure:
15 U.S.C. 78o(c) X
The United States may grant advantages, including but not limited to the following, to one or more
of the Government-Sponsored Enterprises (GSEs) listed below:
• Capital, reserves and income of the GSE are exempt from certain taxation.
• Securities issued by the GSE are exempt from registration and periodic reporting requirements under federal securities laws.
• The U.S. Treasury may, in its discretion, purchase obligations issued by the GSE.
Measures: 12 U.S.C. 1421 et seq. (Federal Home Loan Banks); 12 U.S.C. 1451 et seq.
(Federal Home Loan Mortgage Corporation; 12 U.S.C. 1717 et seq. (Federal National Mortgage Association); 12 U.S.C. 2011 et seq. (Farm Credit Banks); 12 U.S.C. 2279aa-1 et seq. (Federal Agricultural Mortgage Corporation); 20 U.S.C. 1087-2 et seq. (Student Loan
Marketing Association) X
10B-United States-4
PART II: UNITED STATES SCHEDULE OF NON-CONFORMING MEASURES WITH RESPECT TO INSURANCE
Headnotes
the schedule below.
2. National treatment commitments in the insurance sector are subject to the following limitation: national treatment with respect to insurance financial institutions will be provided according to a non- U.S. insurance financial institution’s state of domicile, where applicable, in the United States. State of domicile is defined by individual states, and is generally the state in which an insurer either is incorporated, is organized or maintains its principal office in the United States.
3. Market access commitments in the insurance sector are subject to the following limitation: Article 10.9.1(c) shall not apply to non-conforming measures relating to Article 10.4.
10B-United States-5
Sector: Insurance
Obligations Concerned: National Treatment
Cross-Border Trade
Level of Government: Central
Measures: 31 U.S.C. § 9304
Description: Branches of foreign insurance companies are not permitted to provide surety bonds for U.S. Government contracts.
10B-United States-6
Sector: Insurance
Obligations Concerned: National Treatment
Cross-Border Trade
Level of Gove rnment: Central
Measures: 46 C.F.R. § 249.9
Description: When more than 50 per cent of the value of a maritime vessel whose hull was built under federally guaranteed mortgage funds is insured by a non-US insurer, the insured must
demonstrate that the risk was substantially first offered in the
US market.
10B-United States-7
Sector: Insurance
Obligations Concerned: Market Access
Level of Government: All
Measures:
Description: The United States reserves the right to adopt or maintain any measure that is not inconsistent with the United States’ obligations under Article XVI of the General Agreement on Trade in Services. If the United States deems it necessary to invoke this right, it will endeavor to notify and consult
Singapore, to the extent possible, within a reasonable period of time in advance of implementation of the non-conforming measure, and give due consideration to the views expressed by Singapore in this respect. The United States affirms that it will provide Singapore with the opportunity to raise for review with the United States any aspects of the non-conforming measure
that may be of interest to Singapore.
10B-United States-8
Sector: Insurance
Obligations Concerned: National Treatment
Most-Favored-Nation Treatment
Cross-Border Trade
Senior Management and Boards of Directors
Level of Government: Regional
Measures: All existing non-conforming measures of all states of the
United States, the District of Columbia, and Puerto Rico
Description:
10B-United States-9