Singapore looks to strengthen trade as Pacific Alliance confers Observer status

Expands economic ties with Latin America.

The Singapore Ministry of Trade and Industry (MTI) has announced that Singapore has been conferred an Observer status at the Pacific Alliance, which the agency said is "a reflection of the growing trade and economic ties between Singapore and 4 Latin American countries along the Pacific."

This decision was made by the Pacific Alliance’s founding members – Chile, Colombia, Peru and Mexico, at a recent meeting on 10 February 2014 in Cartagena, Colombia, MTI revealed.

Mr Lim Hng Kiang, Minister for Trade and Industry said: “We are pleased to participate in the development of the Pacific Alliance as an Observer. Singapore shares the Alliance’s commitment to free trade and economic integration.

Singapore’s participation will strengthen the existing ties between Singapore and the member countries of the Pacific Alliance, and helps to connect Latin America and Southeast Asia.”

The Pacific Alliance aims to establish the free movement of goods, services and people. It represents a combined market of 210 million, GDP of US$2.9 trillion and a foreign trade volume of US$ 1 trillion. This makes it the 9th largest economy in the world, representing 36% of Latin America’s total GDP for 2012.

Singapore has a number of agreements, concluded or already in force, with members of the Pacific Alliance, such as Investment Guarantee Agreements, Avoidance of Double Taxation Agreements, Free Trade Agreements and Air Services Agreements. Singaporean companies have been increasingly active in the Pacific Alliance countries, particularly in the urban planning, education, commodities, and food and beverage sectors. Singapore’s observer status offers a platform to foster greater collaboration with the Pacific Alliance countries.