Singapore will sign a free trade agreement (FTA) with the Pacific Alliance (PA), a trading bloc of four Latin American nations – Chile, Colombia, Mexico and Peru, at the end of this year.
Minister of State for Trade and Industry Alvin Tan said the agreement will enable businesses on both sides to access market opportunities and foster greater cooperation in areas such as e-commerce, customs, trade facilitation and maritime services.
In 2019, the total value of Singapore’s goods trade with PA reached 6.1 billion SGD (4.5 billion USD), accounting for 33.2 percent of Singapore’s total merchandise trade turnover with countries in the Latin American region. Meanwhile, the turnover for service trade with the PA in 2018 reached 2.6 billion USD, accounting for 28.2 percent of Singapore’s total service trade turnover with this region.
The PA was formally established in June 2012. Singapore became an Observer State to the PA in 2014 and a Candidate Associate State in 2017.
Singapore already has existing agreements with three of the four PA countries – Chile, Mexico and Peru – that are also member states of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.