Pacific Alliance–Singapore Free Trade Agreement Enters into Force for Peru

By Espinosa Bellido Abogados

The Pacific Alliance – Singapore Free Trade Agreement (PASFTA) has entered into force on 3 May 2025 for Peru, Chile and Singapore. The PASFTA is Singapore’s 28th Free Trade Agreement. It is expected Colombia and Mexico expedite their procedures to bring it into force in these countries soon.

Established in 2012, the Pacific Alliance (PA) is a Latin American trade bloc comprising Peru, Chile, Colombia and Mexico. Combined, the Pacific Alliance represents the 9th largest economy in the world and a total population of 235 million. 

The Pacific Alliance has also an expanding middle class which offers opportunities for companies to meet the region’s growing demand for quality consumer products and services. Its young and increasingly educated population also provides for a skilled labour force.

Singapore’s bilateral trade with the Pacific Alliance in 2024 included top traded products like electric machinery, refined metal products, cocoa products, wine and seafood. This accounts for more than a third of Singapore’s total trade with the Latin America and the Caribbean region.

About 100 Singapore companies are operating across the Pacific Alliance markets. 

Among the benefits of the FTA are integration and complementarity through the possibility of accumulating native materials and inputs, which will enable Peruvian companies, especially micro, small, and medium-sized enterprises (MSMEs), to become suppliers of inputs and intermediate products to the member countries.

Likewise, it opens up new opportunities to develop capacities in key sectors such as cross-border trade in services and e-commerce, facilitating the internationalization of companies through digital services, more integrated logistics solutions, and greater opportunities for technological cooperation.

Trade between Peru and Singapore in 2024 was USD 100 million, with exports from Peru to Singapore amounting to USD 22 million and imports from Singapore to Peru amounting to USD 78 million.

Peru mainly exported minerals (44% of exports) and agricultural goods (42%) to Singapore, and imported nutritional chemicals (20%), lubricants (16%), plastic (11%), among others.