On January 26, 2022, the Pacific Alliance and Singapore signed the Free Trade Agreement at the XVI Summit of the Pacific Alliance. After concluding negotiations in July 2021, Singapore became an associated country of this international organization whose members are Colombia, Chile, Mexico and Peru.
The Agreement contains 25 chapters that regulate highly relevant aspects, such as e-commerce, public procurement, telecommunications, maritime services, cooperation, good regulatory practices, SMEs and the temporary entry of business persons. In addition, essential points for the exchange of goods between the parties are regulated, such as market access, customs procedures and trade facilitation, technical barriers to trade and sanitary measures.
The signing of the Agreement represents an opportunity to expand the region's integration area thanks to the free circulation of goods, services and capital to and from Singapore. For Colombia in particular, Singapore joins the list of strong trade allies thanks to which Colombian products will have easier access to new markets with significant tariff benefits. In turn, Singapore will be a strategic ally for the region thanks to its geographic location, its logistical development and the fact that it is a recognized hub for innovation and technology.
Singapore is among the 10 countries with the highest GDP per capita in the world, with USD 66,263 according to the International Monetary Fund. Singapore's statistics department recorded a GDP growth of 7.2% during 2021, and a volume of exports of USD 454 billion and USD 404 billion of imports. In addition, Singapore has made direct investment in other countries for about USD 690 billion.
The Pacific Alliance is the eighth-largest exporter in the world with a combined population of 230 million, a combined GDP of more than USD 2.6 trillion, and annual exports totaling USD 627 billion.
All Member States must now complete their internal ratification procedures to formalize the entry into force of the Agreement. In the case of Colombia, the final text will be reviewed by the Congress of the Republic and the Constitutional Court. Once accepted, the President may formally ratify it. In Singapore, the text will be reviewed and ratified by the executive branch.
Following the signing of the Agreement with Singapore, the Pacific Alliance negotiations with other states such as Australia, New Zealand and Canada are expected to make significant progress.
Brigard & Urrutia's Customs and International Trade Team, together with our Asia-Pacific consultant Lucía Orozco located in Singapore, will be pleased to answer any questions regarding this new Agreement.