The Free Trade Agreement (FTA) between Singapore and the Pacific Alliance, a bloc made up of Mexico, Colombia, Peru, and Chile, has been in force since May 3 of this year, according to the Ministry of Foreign Trade and Tourism (Mincetur).
This trade agreement will provide significant benefits to Peruvian companies seeking to enter the value chains between these markets.
“The Pacific Alliance-Singapore FTA is part of this bloc's strategy to continue positioning itself as a platform for economic and trade integration with global reach, particularly in the Asia-Pacific region,” emphasized Desilú León Chempén, head of Mincetur.
“With this new FTA, we are improving access conditions for our companies,” she added.
This FTA entered into force for Peru, Chile, and Singapore, as the parties that have completed their internal procedures. It is expected Mexico and Colombia expedite their procedures to bring it into force in these countries soon.
Among the benefits of the FTA are integration and complementarity through the possibility of accumulating native materials and inputs, which will enable Peruvian companies, especially micro, small, and medium-sized enterprises (MSMEs), to become suppliers of inputs and intermediate products to the member countries.
Likewise, it opens up new opportunities to develop capacities in key sectors such as cross-border trade in services and e-commerce, facilitating the internationalization of companies through digital services, more integrated logistics solutions, and greater opportunities for technological cooperation.
"This agreement also allows for greater collaboration on strategic pillars for Peru, such as the digital economy, technology, logistics, trade facilitation, and business connectivity," explained Minister León.
“This allows us to promote innovation among Peruvian companies and foster their integration into global value chains with a high technological component,” she added.
This agreement gives new impetus to Peru's relationship with Singapore. The bilateral agreement with this country has been in force since August 1, 2009, and we are partners through the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which entered into force for Peru on September 19, 2021.
Trade with Singapore
Trade between Peru and Singapore in 2024 was US$100 million, with exports from Peru to Singapore amounting to US$22 million and imports from Singapore to Peru amounting to US$78 million.
Peru mainly exported minerals (44% of exports) and agricultural goods (42%) to Singapore, and imported nutritional chemicals (20%), lubricants (16%), plastic (11%), among others.
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(END) NDP / MDV
Published: 5/5/2025