Logistics managers could soon be shipping more goods to Chile and Singapore, now that the U.S. Senate has approved free trade agreements with those countries. The pacts will take effect on January 1, 2004, bringing to six the number of countries that have eliminated trade barriers with the United States. The others are Mexico, Canada, Jordan, and Israel.

Thomas O'Keefe, president of Mercosur Consulting Group in Washington, D.C., says the new agreements bode well for U.S.-based companies that want to do business in Singapore and Chile.

"Logistics providers from the U.S. will be able to more effectively do business in those countries because it will be easier to establish themselves there," he observes. "Foreign companies must be given the same treatment as nationals. You can't [impose] nationality restrictions, for example. That's where you'll see the biggest impact."

Chile already had free trade agreements with both Canada and Mexico, and its open borders with those countries kept U.S. companies largely out of the loop, says O'Keefe. Although he doesn't foresee a dramatic upswing in dealings with Chile, he does think the removal of tariffs on U.S. goods will boost interest in trading with both Chile and Singapore.

Many observers believe the new pacts signal support in Congress for more open borders. "It's the trend that's important rather than the individual free trade agreements," says John Simpson, former president of the American Association of Exporters & Importers. "I think what [the United States Trade Representative] is accomplishing here is creation of momentum." That, Simpson believes, will not only open up the potential for additional free trade agreements in the United States, but will also push the World Trade Organization to act more quickly on other free trade issues.