SINGAPORE – Singapore is planning to sign a free trade agreement next year with the Pacific Alliance, which consists of Chile, Colombia, Mexico and Peru, after making significant progress on it.
After three years of negotiations, the Pacific Alliance-Singapore free trade agreement (PASFTA) has reached a “substantial conclusion”, said Prime Minister Lee Hsien Loong’s press secretary, Ms Chang Li Lin, in a statement on Friday night (Dec 11).
PM Lee attended the Pacific Alliance Summit for the first time on Friday, via video conference.
Chile’s President Sebastian Pinera played host at the 15th Pacific Alliance Summit. Besides PM Lee, Colombia’s President Ivan Duque and Mexican President Andres Manuel Lopez Obrador and Peru’s President Francisco Sagasti attended the event.
Singapore, Chile, Mexico and Peru are also part of another free trade agreement, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
The Pacific Alliance Summit is held annually among member states Chile, Colombia, Mexico and Peru.
The Latin American trade bloc makes up the eighth largest economy in the world. Singapore has been invited to the summit as a Candidate Associate State of the Pacific Alliance.
Ms Chang said the progress on the PASFTA is welcome news, especially as many economies grapple with challenges brought by Covid-19.
“Strengthened economic links between Singapore and the Pacific Alliance across the Pacific Ocean will boost trade and investment, provide greater opportunities for our businesses and strengthen people-to-people ties between our two regions. We look forward to the signing of the PASFTA next year and to the deepening of economic ties.”