The Pacific Alliance–Singapore Free Trade Agreement (PASFTA) entered into force on 3 May 2025, enhancing trade ties with Latin America and offering wide-ranging economic benefits.
The Pacific Alliance–Singapore Free Trade Agreement (PASFTA) officially came into force on 3 May 2025 for Singapore, Chile, and Peru, marking a major step forward in economic engagement between Singapore and Latin America. This milestone brings Singapore’s total number of Free Trade Agreements to 28.
The Pacific Alliance (PA), formed in 2012, includes Chile, Colombia, Mexico, and Peru—together representing the ninth largest economy in the world with a combined population of 235 million. PASFTA builds on Singapore’s existing agreements with individual PA countries and establishes a modern and comprehensive economic partnership tailored to current business needs.
Key benefits of PASFTA include reduced tariffs, streamlined customs procedures, and increased access to government procurement opportunities. It also covers sectors such as e-commerce, maritime transport services, trade in goods and services, investment, and SME development.
The agreement is expected to particularly benefit Singapore companies already operating in the region, including those in technology, logistics, infrastructure, and agri-business. PASFTA reflects Singapore’s long-term strategy to remain connected, competitive, and relevant in the global economy, especially as interest grows in tapping Latin America’s expanding middle class and resource-rich markets.
