Singapore becomes from this Wednesday the first Associated State of the Pacific Alliance, the trade bloc made up of Colombia, Chile, Mexico and Peru.
(Read: This is how Peru sees the arrival of Singapore to the Pacific Alliance).
The protocol act was carried out this Wednesday in Malaga Bay (Buenaventura)where the pro tempore president of the trade coalition, Colombian President Iván Duque, stressed that this “is a great opportunity for the trade bloc” in the ten years it has been in force.
“This is the first time in this first decade that an associate member has arrived. Singapore arrives with its experience, with its tradition as one of the main centers of innovation in science and technology on the planet and also arrives with a valuable contribution to the fourth industrial revolution. It also comes with a to enrich trade and investment relations being one of the world leaders in foreign trade logistics.“, President Duque mentioned.
(What’s more: Colombia will host the summits of the Pacific Alliance, Prosur and Caricom).
The president also pointed out that this incorporation opens the possibility so that “very soon” the arrival of Ecuador is consolidated in the same capacity as an Associated State. The president of the Andean country, Guillermo Lasso, also attended this summit.
On the other hand, the Singapore Prime Minister Lee Hsien Loongmentioned that this is a “very important moment” for his country that will allow it to “create stronger ties” to improve collaboration between Asia and Latin America.
However, to enter into force, the free trade agreement that was signed must be approved in the legislative bodies of the countries of the bloc. In the Colombian case, it must have the endorsement of the Constitutional Court.
(Read: What Singapore will bring to the Pacific Alliance).
In terms of content, the treaty is made up of 25 chapters in disciplines such as: access to goods markets, sanitary and phytosanitary measures, rules of origin, technical barriers to trade, economic and customs cooperation, trade facilitation, investment, electronic commerce. , cross-border trade in services, maritime services, telecommunications, temporary entry of business people, state-owned companies, public procurement, competition policy, good regulatory practices, gender, SMEs, and legal and institutional matters.
“With this new Trade Agreement between Singapore and the Pacific Alliance, we are fulfilling the vision of getting closer to the Asia Pacific by improving the trade relationship, attracting investment, expanding access to the goods market and promoting access for service providers in a wide range of sectors,” said the Trade Minister, Maria Ximena Lombana.
Reaching the Singapore market through this trade agreement will allow the countries of the Alliance use regional inputs from different countries, promoting regional production chains. Investors from that country are expected to be attracted to the bloc’s extended market as a production and export platform for the region.
The Pacific Alliance is made up of Chile, Colombia, Mexico and Peru, has a population 230 million inhabitants, a GDP per capita of US$19,000 and exports that reach US$627,000 million. This makes the group the eighth largest exporter in the world.
(Keep reading: The commitments of the presidents of Peru and Colombia after their meeting).
The Asian country became an Observer State of the Pacific Alliance in 2014 and a candidate for Associated State in 2017. The negotiations to a Trade Agreement were finalized in July 2021.
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