Free trade agreement enters into force for Singapore, Peru and Chile

Pact gives Singapore firms greater access to Pacific Alliance countries; will enter into force for Colombia, Mexico when ratified

- Ovais Subhani

A free trade agreement has entered into force for Singapore, Chile and Peru, three of the five partner countries in the Pacific Alliance-Singapore FTA (PASFTA), said Singapore's Ministry of Trade and Industry (MTI) on May 5.

The pact will give Singapore companies greater access to the Pacific Alliance countries — Chile, Colombia, Mexico and Peru — that are collectively deemed the world's ninth-largest economy with a total population of 235 million.

The PASFTA was signed on Jan 26, 2022. Singapore ratified the agreement in July 2022, and Peru in February 2023. Chile ratified the pact in March 2025, bringing the PASFTA into force for the three countries first.

The PASFTA will enter into force for Colombia and Mexico upon the completion of their ratification procedures.

The free trade pact will scrap most tariffs on goods traded between partner countries, and improve transparency and efficiency of Customs procedural processing.

Singapore service suppliers and investors will be treated as favorably as those from the Pacific Alliance. Also, Singapore firms will not be required to appoint individuals of any particular nationality to senior management.