The Peru-Singapore Free Trade Agreement: What You Need to Know
The Peru-Singapore Free Trade Agreement (PSFTA) is an agreement that was signed between the two countries in 2008. The agreement aims to facilitate trade between Peru and Singapore by reducing or eliminating tariffs on goods and services, promoting investment, and improving access to the market.
This agreement is essential for both countries because it opens up avenues for economic cooperation and trade. Singapore, a hub for commerce and investments in Southeast Asia, is an essential market for Peruvian products such as agricultural goods, minerals, and textiles. On the other hand, Peru, one of the largest economies in South America, presents significant opportunities for Singaporean companies looking to expand their reach in the region.
The PSFTA covers various aspects of trade and investment, including the liberalization of trade in goods, trade in services, and the protection and promotion of investment. The agreement`s provisions are designed to foster an open and transparent trading environment that benefits both Peru and Singapore.
Some of the essential features of the PSFTA include the elimination of tariffs on over 90% of traded goods, simplified customs procedures, the protection of intellectual property rights, and the promotion of e-commerce. The agreement also includes provisions for resolving disputes between investors and states and promoting cooperation in areas such as customs, trade facilitation, and technical regulations.
The PSFTA has resulted in significant benefits for both countries. For instance, the agreement has helped to increase trade between Peru and Singapore, which has grown steadily since the agreement was signed. In 2019, Peru`s exports to Singapore were valued at $290 million, while Singapore`s exports to Peru were worth $139 million. By creating a mutually beneficial trading environment, the PSFTA has also encouraged investments in both countries.
The PSFTA has also played an important role in strengthening economic ties between Peru and Singapore. In addition to promoting trade and investment, the agreement has facilitated exchanges in other areas such as education, culture, and tourism.
In conclusion, the Peru-Singapore Free Trade Agreement is an essential agreement that has helped to promote economic cooperation between two countries that are geographically distant but share many common interests. The agreement has been successful in increasing trade, reducing barriers to entry, and encouraging investment in both economies. With the bilaterally beneficial provisions of the PSFTA in place, it is expected that trade between Peru and Singapore will continue to grow, creating more opportunities for businesses and individuals on both sides.