Singapore to sign free trade agreement with Pacific Alliance next year

SINGAPORE: Singapore plans to sign a free trade agreement with the Pacific Alliance, which comprises Chile, Colombia, Mexico and Peru, next year, Prime Minister Lee Hsien Loong's press secretary said on Friday (Dec 11).

A "substantial conclusion" has been reached in the agreement after three years of negotiations, Ms Chang Li Lin said.

Mr Lee Hsien Loong on Friday attended the 15th Pacific Alliance Summit via video conference, his first participation in the annual meeting. Singapore was invited as a Candidate Associate State of the alliance.

"After three years of negotiations, we have made significant progress and the Pacific Alliance-Singapore FTA has managed to reach substantial conclusion," Ms Chang said.

Strengthened economic links between Singapore and the alliance will boost trade and investment, provide greater opportunities for businesses and strengthen ties between the two regions, she added. 

"We look forward to the signing of the PASFTA next year and to the deepening of economic ties."

In a press release issued after the summit, Minister for Trade and Industry Chan Chun Sing said the agreement will enable greater access to the Pacific Alliance markets for Singapore businesses.

The Pacific Alliance is collectively the eighth-largest economy and seventh-largest exporter in the world. In 2019, Singapore’s total trade in goods with the alliance was S$6.1 billion, which accounted for 33.2 per cent of its total trade in goods with Latin America.

Chilean President Sebastian Pinera hosted the summit. Colombia President Ivan Duque, Mexican President Andres Manuel Lopez Obrador and Peruvian President Francisco Sagasti were also present.