SINGAPORE – Peru has become the first of the four Latin American nations in the Pacific Alliance bloc to ratify a free-trade deal with Singapore.
The ratification was announced by the Peruvian embassy in Singapore on Thursday.
Singapore signed the trade pact with the four-nation Pacific Alliance – it also comprises Chile, Colombia and Mexico – in January 2022 after four years of negotiations.
The agreement needs ratification by all four members of the alliance to come into effect.
The Peruvian embassy noted that the trade deal “will promote value-added exports to Singapore and the creation of productive value chains”, which will help “the social and economic development of our countries” and improve living standards.
Singapore’s Trade and Industry Minister Gan Kim Yong congratulated Peru for the ratification and hoped other members would do the same promptly.
He added that the pact “will catalyse greater economic cooperation in areas of mutual interest such as digital and green economies, supply chain connectivity, and business and people links”.
The Pacific Alliance agreement builds on agreements Singapore already has with Pacific Alliance countries, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the Trans-Pacific Economic Partnership and the Peru-Singapore Free Trade Agreement.
The Trade and Industry Ministry said the new deal will enable Singapore companies to enjoy greater market access to the Pacific Alliance, which has a combined population of 230 million people.
It will reduce export costs so that Singapore’s goods and services can be priced more competitively and also includes a chapter on international maritime transport services.
The chapter, a first for a Singapore free-trade deal, aims to enhance physical connectivity between Singapore and the Pacific Alliance nations and encourage the exchange of best practices and training for those in the maritime sector.
Singapore has an extensive network of 27 free-trade agreements with partner countries and trading blocs.
