Singapore boosts trade links with Chile and Peru via PASFTA

Key features include tariff elimination on the majority of goods, streamlined customs procedures, among others.

The Pacific Alliance–Singapore Free Trade Agreement (PASFTA) officially entered into force on May 3 for Singapore, Chile, and Peru, marking Singapore’s 28th free trade agreement. 

The milestone follows Chile’s ratification in March this year, after earlier approvals by Singapore and Peru in 2022 and 2023, respectively. The deal will take effect for Colombia and Mexico once they complete their ratification processes.

Established in 2012, the Pacific Alliance is a Latin American economic bloc comprising Chile, Colombia, Mexico, and Peru.

Together, the member states represent the world’s ninth-largest economy with a combined GDP of over US$2.7t and a population of 235 million. In 2024, Singapore’s bilateral trade with the bloc reached $12.5b, led by sectors such as electronics, metals, cocoa products, and seafood.

PASFTA builds on Singapore’s existing agreements with individual PA members and introduces new provisions to deepen economic ties.

Key features include tariff elimination on the majority of goods, streamlined customs procedures, and enhanced cooperation in digital trade, services, investment, and maritime transport.

Notably, it is Singapore’s first FTA to include a dedicated chapter on international maritime transport services.

The agreement is also expected to benefit Singapore businesses operating in the region, including around 100 companies in sectors like infrastructure, food trade, and technology.

The Ministry of Trade and Industry said PASFTA will support Singapore’s economic diversification and strengthen its connectivity with fast-growing markets in Latin America.