Singapore signs free trade agreement with Pacific Alliance
25 February 2022
On 27 January 2022, the Ministry of Trade and Industry (“MTI”) issued a press release announcing that Minister for Trade and Industry Gan Kim Yong and his counterparts from the Pacific Alliance (“PA”) Member States (Chile, Colombia, Mexico, and Peru) signed the PA-Singapore Free Trade Agreement (“PASFTA”) and PA-Singapore Joint Declaration at the 16th PA Summit in Colombia.
With the signing of PASFTA and the PA-Singapore Joint Declaration, Singapore has become the first Associate Member of the PA, enabling Singapore and the PA to explore economic cooperation in sectors of mutual interest, such as the digital economy, logistics and infrastructure, and food trade.
PASFTA also complements Singapore’s network of free trade agreements (“FTAs”) and builds on existing agreements that Singapore has with PA countries, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Trans-Pacific Economic Partnership (P4), and the Peru-Singapore FTA.
Singapore companies will be able to enjoy greater market access to the PA by reducing export costs so that goods and services can be priced more competitively. In addition to chapters on the traditional areas of trade in goods, services, and investment, PASFTA also includes a chapter on international maritime transport services, a first for a Singapore FTA. This chapter aims to enhance physical connectivity between Singapore and the PA, and encourage the exchange of best practices and training for those in the maritime sector.
The press release is available from the MTI website www.mti.gov.sg.