The PASFTA, Singapore’s 28th free trade agreement, officially enters into force on 3 May 2025, strengthening ties with key Latin American markets

The Pacific Alliance-Singapore Free Trade Agreement (PASFTA) has officially entered into force on 3 May 2025, marking a significant milestone for Singapore’s international trade relations. The agreement, which includes Chile and Peru as the first to implement it, solidifies Singapore’s 28th Free Trade Agreement (FTA). The PASFTA aims to enhance trade and investment ties between Singapore and the member countries of the Pacific Alliance (PA) – Chile, Colombia, Mexico, and Peru.

Established in 2012, the Pacific Alliance is a Latin American trade bloc that collectively represents the 9th largest economy globally, with a combined population of 235 million people. Singapore’s strong trade presence is evident, with nearly 100 Singaporean companies operating across the Pacific Alliance markets. The agreement builds upon existing FTAs, with Singapore already having trade agreements with Chile and Mexico through the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and with Peru via both the CPTPP and a bilateral FTA.

The signing of the PASFTA took place at the 16th Pacific Alliance Summit in Colombia on 26 January 2022, with then-Minister for Trade and Industry, Gan Kim Yong, and his counterparts from the Pacific Alliance member states. After ratifications from Singapore and Peru in 2022 and 2023, Chile’s ratification on 4 March 2025 triggered the agreement’s entry into force for these three countries. The agreement will come into force for Colombia and Mexico upon the completion of their respective ratification procedures.

This agreement underscores Singapore’s commitment to expanding its trade network with Latin America, offering greater opportunities for businesses in both regions. With the PASFTA now in effect, Singaporean companies will benefit from enhanced market access, lower trade barriers, and broader investment prospects within the Pacific Alliance markets.

Source: MTI Singapore