Pacific Alliance and Singapore sign trade agreement

The Pacific Alliance and Singapore concluded the negotiations for a Free Trade Agreement, an important event for the growth of the regional bloc made up of Colombia, Chile, Peru and Mexico.

“It is an honor for me to announce the closing of such important negotiations. In recent years, the Pacific Alliance has strengthened trade and partnership ties with this Asian economy. With the agreement in negotiations, it is established that Singapore will become the first associated state of the Pacific Alliance, ”said the Colombian Minister of Commerce, María Ximena Lombana, when making the announcement on July 22.

According to the Minister, the agreement with Singapore will strengthen commercial ties with Asian economies within the framework of the plan to reactivate international trade after the Covid-19 pandemic.

“This agreement reaffirms the Pacific Alliance’s commitment to greater trade liberalization and regional integration. In addition, it emphasizes our interest in inserting ourselves in Asia Pacific. The treaty will also focus on encouraging the attraction of investments, facilitating government procurement contracts and enhancing the access of service providers to a wide range of sectors, ”added Minister Lombana.

Official data from the Pacific Alliance indicate that in 2019 the total trade of goods with Singapore was 6,100 million dollars, which represented 33.2% of the total exchange of goods with Latin America.

Currently, the Pacific Alliance represents 41% of the Gross Domestic Product (GDP) of Latin America, receives 38% of the Foreign Direct Investment (FDI) of the region and annually exports about 627 billion dollars.

Economic weight of the Pacific Alliance:

– Global GDP of the Pacific Alliance $ 2.08 trillion

– 41% of the total GDP of Latin America – Annual GDP per capita: $ 9,475 (average)

– 38% of the total Foreign Direct Investment in LA (FDI)

– 627 billion dollars in exports 

– 75 Free Trade Agreements with the world

– 591 thousand 880 million dollars in exports

– 55 million tourists

– 2,240 scholarships assigned

Source: Ministry of Commerce, Industry and Commerce of Colombia, 2019 data.