Latest news with #PacificAlliance
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.
CNA
07-05-2025
- Business
- CNA
Singapore-Pacific Alliance FTA offers firms, investors a stable environment to grow: Alvin Tan
Minister of State for Trade and Industry Alvin Tan says the free trade agreement (FTA) between Singapore and Pacific Alliance offers businesses and investors a stable environment to grow. The FTA entered into force on May 5 to reduce tariffs and lower operating costs for businesses, and builds on bilateral trade, which reached S$12.5 billion last year. Alex Capri, Senior Lecturer at the NUS School of Business and author of Techno-Nationalism: How it's Reshaping Trade, Geopolitics and Society joins us in the studio to discuss how important the Latin American market is to Singapore and how this FTA will shape our trade relations with them.
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.
CNA
05-05-2025
- Business
- CNA
Free trade agreement between Singapore and Pacific Alliance enters into force for 3 countries
SINGAPORE: A free trade agreement (FTA) between Singapore and the Pacific Alliance came into force on Saturday (May 3) for three countries, the Ministry of Trade and Industry (MTI) said on Monday. The Pacific Alliance is a Latin American trade bloc comprising Chile, Colombia, Mexico and Peru. The FTA for Singapore, Peru and Chile was entered into force first, while Colombia and Mexico undergo their ratification processes. Combined, the Pacific Alliance represents the ninth-largest economy in the world, with a total population of 235 million. The agreement was signed in January 2022 by Singapore's Minister for Trade and Industry Gan Kim Yong and his counterparts from the Pacific Alliance member states. Singapore and Peru ratified the agreement in July 2022 and February 2023 respectively. It was ratified by Chile on Mar 4, bringing the agreement into force. This is Singapore's 28th free trade agreement. Singapore's bilateral trade with the Pacific Alliance in 2024 was S$12.5 billion (US$9.6 billion), accounting for more than a third of Singapore's total trade with the Latin American and Caribbean region. The top traded products include electric machinery, refined metal products, cocoa products, wine and seafood. There are also about 100 Singapore companies operating in the Pacific Alliance's markets, in sectors such as technology and the digital economy, food trade, infrastructure as well as port management and logistics. It is the first FTA between Singapore and Colombia. 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. KEY BENEFITS Countries under the agreement will not impose tariffs on each other's goods on most tariff lines. Colombia, in particular, will reduce or eliminate tariffs on 85.7 per cent of tariff lines after it ratifies the agreement. Businesses can also use materials from any member country to contribute towards a good's originating status, making it easier for their exports to qualify for preferential tariff treatment, under certain conditions. Singapore service providers can enjoy lower operating costs as they need not establish or maintain a local representative office in the Pacific Alliance for sectors which have been committed to liberalisation. They will also have preferential market access in legal, construction and tax advisory services. Singapore companies can also bid for the Pacific Alliance's government procurement projects.
