On January 26, Singapore’s 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.
The PASFTA is a modern and comprehensive agreement that complements Singapore’s network of FTAs and builds on the existing agreements that Singapore has with the PA countries, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Trans-Pacific Economic Partnership (P4), and the Peru- Singapore Free Trade Agreement.
The PASFTA will enable Singapore companies to enjoy greater market access to the PA, by reducing their export costs so that their goods and services can be priced more competitively.
In addition to chapters on the traditional areas of trade in goods, services, and investment, the 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.
With the signing of the PASFTA and PA-Singapore Joint Declaration, Singapore will become the first Associate Member of the PA. This will enable Singapore and the PA to explore economic cooperation in sectors of mutual interest, such as the digital economy, logistics and infrastructure, and food trade.
Gan said, “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.”
Countries will now work on their respective ratification processes to bring the agreement into force. The PASFTA will enter into force after Singapore and two PA Member States have ratified the agreement.