Latest news with #PASFTA
Straits Times
31-07-2025
- Business
- Straits Times
Deepening S'pore-Latin America ties a matter of urgency amid global trade uncertainty: Alvin Tan
Sign up now: Get ST's newsletters delivered to your inbox Minister of State for Trade and Industry Alvin Tan noted that the Republic must continue to build connections with existing and new partners. SINGAPORE - Singapore is strengthening ties with Latin America, with such efforts taking on greater importance and urgency amid the global trade uncertainty, said Minister of State for Trade and Industry Alvin Tan. Speaking at the Singapore Business Federation's LATAM Conference on July 31, he noted that the Republic must continue to build connections with existing and new partners. 'In a world of shifting trade patterns and economic headwinds, Latin America stands out as a region of great potential, one that Singapore and Singapore companies cannot afford to overlook,' he said While Singapore and the broader Asia-Pacific region are geographically distant from Latin America, Mr Tan said there are common characteristics between the regions, including a young and sophisticated workforce, widespread technology adoption, and common interests in areas such as sustainable development and innovation. Overall trade in goods between Singapore and Latin America also grew by more than 20 per cent over the past year, from $28.5 billion to $35.3 billion, with an uptick in the trade of machinery, electronics, petroleum and agricultural goods, he said. Trade in services between Singapore and Latin America is also growing, in engineering services telecommunications, computer and information services and transport services. 'Our strengthening trade architecture at the institution level will continue to promote and support these flows,' Mr Tan added. Top stories Swipe. Select. Stay informed. Singapore SMRT's finances hit by 2024 EWL disruption; profit after tax for trains division dips 8% Asia US-Malaysia tariff deal set for Aug 1 after Trump-Anwar phone call Asia Malaysia PM Anwar says Trump to attend Asean Summit in October Singapore Underground pipe leak likely reason for water supply issues during Toa Payoh fire: Town council Multimedia 60 years, 60 items: A National Day game challenge Singapore Driver in 2024 Tampines crash that killed 2 set to plead guilty in October Life Milo tees, kaya toast pimple patches, crockery: Here are the SG60 merch to collect Singapore 'Switching careers just as I became a dad was risky, but I had to do it for my family' He also noted that the Pacific Alliance-Singapore Free Trade Agreement (PASFTA) entered into force in May 2025 for Singapore, Chile and Peru. It marks Singapore's 28th FTA and is a major milestone in the Republic's economic ties with the Pacific Alliance. 'We hope the remaining Pacific Alliance member states, Mexico and Colombia, will complete their ratification processes soon. PASFTA will be the first FTA between Singapore and Colombia, once Colombia ratifies the agreement,' said Mr Tan. The four countries of the Pacific Alliance – Chile, Colombia, Mexico and Peru – have a combined gross domestic product of more than US$2.7 trillion (S$3.5 trillion) in nominal terms, accounting for about 40 per cent of the total GDP of the Latin America and Caribbean region, according to the World Bank. Mr Tan also said that Singapore is looking forward to the entry-into-force of the Mercosur-Singapore Free Trade Agreement (MCSFTA), a pact between the Republic and the Latin American nations of Argentina, Brazil, Paraguay and Uruguay – a group known by the Spanish acronym Mercosur. '(MCSFTA) will be the first FTA between Mercosur and a South-east Asian country, and will open new market opportunities for our businesses with this large South American bloc,' he said. On the green economy front, Mr Tan said that Singapore signed implementation agreements on carbon credit collaboration under Article 6 of the Paris Agreement with three Latin American partners – Peru, Chile and Paraguay – in the first half of 2025. 'These collaborations will facilitate increased investment, create jobs in the green economy, promote sustainable development and facilitate tech transfer, while enabling us to meet our respective climate targets,' he said. Mr Tan noted that several Latin American countries have also taken formal steps to accede to the Digital Economy Partnership Agreement (DEPA), which was signed by Singapore, Chile and New Zealand in 2020. DEPA establishes key rules on digital trade and economic collaborations on issues such as digital identities, cross-border data flows and artificial intelligence to help businesses, especially smaller ones, engage in digital trade and electronic commerce. Costa Rica substantively concluded its accession to DEPA in January, and Peru's accession is currently under way, said Mr Tan, who is also Minister of State for National Development. On the commercial front, he said that there are regular exchanges between Singapore and Latin American businesses. In July 2024, the Singapore Business Federation, supported by Enterprise Singapore, led a delegation of Singapore companies to explore manufacturing opportunities in Mexico. Mr Tan also said that he led a delegation of Singapore fintech companies to Sao Paulo in Brazil in September 2024, where they identified potential partners and new opportunities in areas such as financial services, digital payments and fintech regulation. He noted that there are four areas of opportunity in Latin America – manufacturing, innovation, green economy and agri-trade – that Singapore companies can explore. For example, Mexico's smart manufacturing market is projected to double by 2033, driven by the adoption of automation and the latest technologies in the automotive and electronics sectors. Factories in the state of Queretaro and the city of Monterrey are integrating AI and robotics, boosting productivity and attracting high-tech foreign investment. Meanwhile, venture capital investment in Latin America rose by 26 per cent in 2024, driven largely by activity in Brazil, Mexico and Argentina. Brazil's Sao Paulo is currently ranked among the world's top 30 innovation ecosystems, with a combined ecosystem value of US$113 billion and 11 unicorns. Mr Tan also said Latin America is known as the world's 'next global breadbasket', and is the largest net food-exporting region in the world. The Singapore Food Agency has approved the import of meat from more Latin American countries over the past few years, and Singapore can now import pork from Colombia and Mexico as well as both pork and poultry from Chile, Brazil and Paraguay. 'As a small, land-scarce country which imports more than 90 per cent of the food we consume, we can work with LATAM partners to strengthen Singapore's food security and open new, mutually beneficial commercial opportunities for our agri-food players,' said Mr Tan. He said that the Ministry of Trade and Industry, together with its agencies and industry partners, will continue to support Singapore's businesses in exploring these new opportunities in Latin America. 'This is a critical moment for Singapore to build new bridges with a region that offers strategic depth and complementary strengths – for resilience, innovation and long-term opportunity,' he said.
Straits Times
07-05-2025
- Business
- Straits Times
FTA with Pacific Alliance opens doors to new opportunities for S'pore businesses: Alvin Tan
State Minister for Trade and Industry Alvin Tan (centre) said the pact 'fosters an environment of predictability and fairness'. ST PHOTO: ARIFFIN JAMAR FTA with Pacific Alliance opens doors to new opportunities for S'pore businesses: Alvin Tan SINGAPORE – The free trade agreement between Singapore and the Pacific Alliance will serve as a platform for Singapore's businesses to access new markets and new opportunities in Latin America, said Minister of State for Trade and Industry Alvin Tan on May 7. Speaking at a dinner at The Fullerton Hotel to commemorate the recent entry into force of the Pacific Alliance-Singapore Free Trade Agreement (PASFTA) for Singapore, Chile and Peru, Mr Tan said the pact 'fosters an environment of predictability and fairness, which is crucial for our investors and businesses to make decisions, operate with confidence and thrive'. The FTA will give Singapore companies greater access to the Pacific Alliance countries – Chile, Colombia, Mexico and Peru – that are collectively deemed the world's ninth-largest economy, with a total population of 235 million. The four countries of the Pacific Alliance have a combined gross domestic product (GDP) of more than US$2.7 trillion (S$3.5 trillion) in nominal terms, accounting for about 40 per cent of the total GDP of the Latin America and Caribbean region, according to the World Bank. The PASFTA was signed on Jan 26, 2022. Singapore ratified the agreement in July that year, and Peru in February 2023. Chile ratified the pact in March 2025, bringing the PASFTA into force for the three countries on May 3. Mr Tan said that beyond the PASFTA, Singapore and its partners in Latin America are engaging in the avoidance of double taxation agreements, as well as frameworks to facilitate digital trade and green economy collaboration. 'These are ongoing efforts to further expand the network of trade-enabling agreements between Singapore and Latin America,' he said. The PASFTA will scrap most tariffs on goods traded between partner countries, and improve the transparency and efficiency of Customs procedural processing. Singapore service suppliers and investors will be treated as favourably as those from the Pacific Alliance. Also, Singapore firms will not be required to appoint individuals of any particular nationality to senior management. Singapore is already an FTA partner with Chile and Mexico through the existing Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and with Peru through the CPTPP and the bilateral Peru-Singapore FTA. The Ministry of Trade and Industry said Singapore's bilateral trade with the Pacific Alliance in 2024 was $12.5 billion. Some top traded products include electric machinery, refined metal products, cocoa products, wine and seafood. About 100 Singapore companies are already operating across the Pacific Alliance markets, mostly in sectors such as technology and the digital economy, food trade, infrastructure, and port management and logistics. Experts believe increased access to relatively new markets will be critical for Singapore companies at a time when the world's largest economy – the US – has turned hostile towards the global trading order it helped establish after World War II. Amid the turmoil, Singapore has vowed to continue strengthening multilateralism and free trade, and seek new opportunities in less-explored markets for its businesses. Mr Tan said Singapore and its trade partners are 'sailing through stormy conditions and choppy waters', and that geopolitical tensions are rising, trade barriers are going up, supply chains are fracturing, and businesses are navigating a volatile and uncertain world. 'In today's environment, the PASFTA takes on added significance as a reminder to all of us of the importance of international engagement and cooperation, and of upholding rules-based trade,' he said. Mr Francisco Tenya Hasegawa, Peru's Ambassador to Singapore, said his country looks forward to not only deepening commercial ties but also cooperation in environmental and strategic spheres with the Republic. He said Peru offers traders and investors world-class infrastructure, such as the Chancay Megaport, ready to receive and dispatch large vessels en route to Asia. Peru also has vast resources in different areas such as agriculture, poultry, fishery foods and superfoods, as well as rare minerals, and precious and semi-precious metals. 'The table is set. Let us seize this moment to expand markets, share innovation and grow together,' the ambassador said. Chile's Ambassador Tamara Villanueva said her country already has a strong presence in Asean markets, with more than 275 products from fresh fruits to seafood, and with the possibility of expanding this list to over 3,000 products in the future. She said Chile is positioning itself as a key enabler of the global energy transition by advancing sustainable mining practices and using its rich reserves of essential minerals, not just copper and lithium, but also molybdenum and rare earths needed for green technologies. The PASFTA – Singapore's 28th FTA – is a comprehensive agreement containing 25 chapters, including trade in goods, services and investment, small and medium-sized enterprises, good regulatory practices for trade and investment, and electronic commerce. It is also Singapore's first FTA with a chapter on international maritime transport services. This chapter aims to enhance physical connectivity between partner countries and facilitate the exchange of best practices and training opportunities. Join ST's Telegram channel and get the latest breaking news delivered to you.
Singapore Law Watch
06-05-2025
- Business
- Singapore Law Watch
Singapore-Pacific Alliance free trade agreement enters into force for Republic, Chile and Peru
Singapore-Pacific Alliance free trade agreement enters into force for Republic, Chile and Peru Source: Straits Times Article Date: 06 May 2025 Author: Ovais Subhani The pact will give Singapore companies greater access to the Pacific Alliance countries – Chile, Colombia, Mexico and Peru – that are collectively deemed the world's ninth-largest economy with a total population of 235 million. A free trade agreement has entered into force for Singapore, Chile and Peru, three of the five partner countries in the Pacific Alliance-Singapore FTA (PASFTA), said Singapore's Ministry of Trade and Industry (MTI) on May 5. The pact will give Singapore companies greater access to the Pacific Alliance countries – Chile, Colombia, Mexico and Peru – that are collectively deemed the world's ninth-largest economy with a total population of 235 million. The PASFTA was signed on Jan 26, 2022. Singapore ratified the agreement in July 2022, and Peru in February 2023. Chile ratified the pact in March 2025, bringing the PASFTA into force for the three countries first. The PASFTA will enter into force for Colombia and Mexico upon the completion of their ratification procedures. The free trade pact will scrap most tariffs on goods traded between partner countries, and improve transparency and efficiency of Customs procedural processing. Singapore service suppliers and investors will be treated as favourably as those from the Pacific Alliance. Also, Singapore firms will not be required to appoint individuals of any particular nationality to senior management. The four countries of the Pacific Alliance have a combined gross domestic product (GDP) of more than US$2.7 trillion (S$3.5 trillion) in nominal terms, accounting for about 40 per cent of the total GDP of the Latin America and Caribbean region, according to the World Bank. Singapore is already FTA partners with Chile and Mexico through the existing Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and with Peru through the CPTPP and the bilateral Peru-Singapore FTA. MTI said Singapore's bilateral trade with the Pacific Alliance in 2024 was $12.5 billion. Some top traded products include electric machinery, refined metal products, cocoa products, wine and seafood. About 100 Singapore companies are already operating across the Pacific Alliance markets, mostly in sectors including technology and the digital economy, food trade, infrastructure, and port management and logistics. Singapore's Olam Food Ingredients (OFI) has established itself as a leading coffee exporter in the market. It sources high-quality beans directly from farmers in Colombia, Mexico and Peru for its global customer base. Mr Manish Dhawan, OFI's president of the coffee division, said his company sees clear benefits in the PASFTA helping it better serve high-quality sustainable ingredients to roasters and manufacturing customers worldwide. He said the PASFTA is expected to reduce tariffs and export costs, provide a streamlined regulatory framework, simplify Customs procedures and enhance trade facilitation provisions. 'These changes are timely and will enable OFI to better support customers by navigating increasing tariff risks in the market today. Enhanced trade flows can also empower businesses like ours to scale investments in the region, and foster greater innovation,' said Mr Dhawan. Experts believe increased access to relatively new markets will be critical for Singapore companies at a time when the world's largest economy – the US – has turned hostile towards the global trading order it helped establish after World War II. Amid the turmoil, Singapore has vowed to continue strengthening multilateralism and free trade, and seek new opportunities in less-explored markets for its businesses. MTI said the PASFTA – Singapore's 28th FTA – is a comprehensive agreement containing 25 chapters, including trade in goods, services and investment, small and medium-sized enterprises, good regulatory practices for trade and investment, and electronic commerce. The PASFTA is Singapore's first FTA with a chapter on international maritime transport services. This chapter aims to enhance physical connectivity between partner countries and facilitate the exchange of best practices and training opportunities. Source: The Straits Times © SPH Media Limited. Permission required for reproduction. Print
Straits Times
05-05-2025
- Business
- Straits Times
Singapore-Pacific Alliance free trade agreement enters into force for Republic, Chile and Peru
The five-country FTA will enter into force for Colombo and Mexico when they complete the process. ST PHOTO: BRIAN TEO SINGAPORE - A free trade agreement has entered into force for Singapore, Chile and Peru, three of the five partner countries in the Pacific Alliance-Singapore FTA, said Singapore's Ministry of Trade and Industry (MTI) on May 5. The pact will give Singapore companies greater access to the Pacific Alliance countries - Chile, Colombia, Mexico, and Peru - that are collectively deemed as the world's ninth-largest economy in the world with a total population of 235 million. The PASFTA was signed on Jan 26, 2022. Singapore ratified the agreement in July 2022 and Peru in February 2023. Chile ratified the pact in March 2025, bringing the PASFTA into force for the three countries first. The PASFTA will enter into force for Colombia and Mexico upon the completion of their ratification procedures. The free trade pact will scrap most tariffs on goods traded between partner countries and improve transparency and efficiency of customs procedural processing. Singapore service suppliers and investors will be treated as favourable as those in the Pacific Alliance. Also, Singapore firms will not be required to appoint individuals of any particular nationality to senior management. The four countries of the Pacific Alliance have a combined gross domestic product of more than US$2.7 trillion (S$3.51 trillion) in nominal terms, accounting for about 40 per cent of the total GDP of the Latin America and the Caribbean region, according to the World Bank. Singapore is already FTA partners with Chile and Mexico through the existing Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and with Peru through the CPTPP and the bilateral Peru-Singapore FTA. MTI said Singapore's bilateral trade with the Pacific Alliance in 2024 was $12.5 billion. Some top traded products include electric machinery, refined metal products, cocoa products, wine and seafood. About 100 Singapore companies are already operating across the Pacific Alliance markets, mostly in sectors including technology and the digital economy, food trade, infrastructure, and port management and logistics. Singapore's Olam Food Ingredients (OFI) has established itself as a leading coffee exporter in the market. It sources high quality beans directly from farmers in Colombia, Mexico and Peru for its global customer base. Mr Manish Dhawan, OFI's president of coffee division, said his company sees clear benefits in PASFTA helping it better serve high-quality sustainable ingredients to roasters and manufacturing customers worldwide. He said the PASFTA is expected to reduce tariffs and export costs, provide a streamlined regulatory framework, simplify customs procedures, and enhance trade facilitation provisions. 'These changes are timely and will enable OFI to better support customers by navigating increasing tariff risks in the market today. Enhanced trade flows can also empower businesses like ours to scale investments in the region, and foster greater innovation,' said Mr Dhawan. Experts believe increased access to relatively new markets will be critical for Singapore companies at a time when the world's largest economy - the United States - has turned hostile towards the global trading order it helped establish after World War II . Amid the turmoil, Singapore has vowed to continue strengthening multilateralism and free trade, and seek new opportunities in less-explored markets for its businesses. MTI said the PASFTA - Singapore's 28th FTA - is a comprehensive agreement containing 25 chapters, including trade in goods, services, and investment, small and medium-sized enterprises, good regulatory practices for trade and investment, and electronic commerce. The PASFTA is Singapore's first FTA with a chapter on international maritime transport services. This chapter aims to enhance physical connectivity between partner countries and facilitate the exchange of best practices and training opportunities. Join ST's Telegram channel and get the latest breaking news delivered to you.
