Singapore inks PASFTA with Latin America

This is to establish new trade linkages with the region.

The PA-Singapore Free Trade Agreement was signed as of 26 January as part of efforts by Singapore and Latin America to establish new trade linkages.

Those who signed the agreement include Minister for Trade and Industry Gan Kim Yong and his counterparts from the Pacific Alliance (PA) Member States. These include Chile, Colombia, Mexico, and Peru. Meanwhile, Prime Minister Lee Hsien Loong delivered remarks virtually and also remained part of the signing ceremony.

Included in the PAFTA is an agreement that supplements Singapore’s network of FTAs and existing agreements with the member countries. Examples of these previous agreements include the comprehensive and Progressive Agreement for Trans-Pacific Partnership, the Trans-Pacific Economic Partnership, and the PeruSingapore Free Trade Agreement.

The move is also set to enable Singapore companies with greater market access to the PA through the reduction of export costs. A focus on international maritime export services is also present in the agreement with the aim of enhancing physical connectivity between Singapore and the PA.

“The PASFTA is a demonstration of Singapore and the Pacific Alliance’s shared commitment to greater economic integration and a rules-based, multilateral trading system. The PASFTA will allow us to create more opportunities for our businesses and support good jobs for our people. We look forward to the swift implementation of the agreement. As an Associate Member of the PA, Singapore is also committed to working with the PA on areas of mutual interest, to improve the quality of lives in our countries and regions,” said Gan Kim Yong, Minister for Trade and Industry.