LIMA, Feb 25 (NNN-ANDINA) — By Supreme Decree published on Wednesday, Peru has ratified the Pacific Alliance-Singapore Free Trade Agreement (PASFTA) and has become the first country in the bloc to do so.
Thus, Peru has become the first nation in the PA to ratify the treaty which —once it enters into force for the four member States (Chile, Colombia, Mexico, and Peru)— will make Singapore the first Associate State of said bloc.
The PASFTA is a trade and investment opportunity for micro, small, and medium-sized companies, as well as for the promotion of innovation and a greater participation of Peru in global value chains.
Thanks to the entry into force of said agreement, materials originating from Pacific Alliance member countries, which are incorporated into merchandise produced in Singapore, will be deemed as originating in the Asian country.
Similarly, materials originating in Singapore that are incorporated into goods from PA members will be deemed as originating in the country in question.
For Peru, this treaty complements the economic-commercial relationship that it maintains with Singapore.
There is currently a bilateral trade agreement in force since 2009, plus the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) ratified in 2021 to contribute to Peruvian exports growth.
In addition, as an Associate State, Singapore will be allowed to participate in meetings of the various instances of this integration mechanism, host activities that contribute to the alliance, and develop work of mutual interest in the economic-commercial and cooperation fields.
The Pacific Alliance is an economic and development initiative among four member nations – Chile, Colombia, Mexico, and Peru.
The bloc constitutes an integration area to boost growth, as well as to achieve the free movement of goods, services, capital, and people.
Meanwhile, the Ministry of Trade & Industry (MTI) of Singapore congratulated Peru for being the first Pacific Alliance Member State to ratify an FTA with the Asian country.
Via its official Twitter account, the Singaporean government agency congratulated Peru on the ratification of said treaty last Thursday.
According to the MTI, said treaty will boost economic cooperation between both regions.
“Congratulations to Peru for being the first Pacific Alliance country to ratify the Pacific Alliance-Singapore Free Trade Agreement –a partnership that will catalyse greater economic corporation between our regions, in areas of mutual interest!” it expressed via Twitter. — NNN-ANDINA
