SINGAPORE – Singapore strengthened its economic ties with the Pacific Alliance (PA) with the signing of the PA-Singapore Joint Work Plan for Mexico Collaboration on Tuesday, May 17.
Minister of State for Trade and Industry Alvin Tan signed the agreement with Mexican Foreign Secretary Marcelo Ebrard.
Mexico currently holds the rotating presidency of the PA, which includes Chile, Colombia, Mexico and Peru. Taken together, the bloc has a combined gross domestic product (GDP) that makes it the world’s eighth largest economy.
The agreement sets out initiatives of mutual interest that Singapore and the Palestinian Authority should work on, with targets and deadlines to be achieved.
Areas of collaboration include the digital economy, technology and innovation, including in fintech and electronic payments.
Green energy and sustainability is another area identified for partnership, as in low carbon technologies like hydrogen and carbon capture.
Other areas include connectivity, logistics and trade facilitation, as well as the links between businesses and people.
The PA-Singapore Joint Work Plan builds on the PA-Singapore Free Trade Agreement and PA-Singapore Joint Statement signed by Minister of Trade and Industry Gan Kim Yong and Ministers of Trade and PA foreign affairs during the 16th PA summit held in January in Colombia.
The work plan also includes regular dialogue and cooperation between the PA and Singapore to strengthen ties between the two regions for long-term and enduring relations, the Ministry of Trade and Industry (MTI) said on Tuesday. ) in a press release.
PA has a combined population of 230 million and a combined GDP of over US$2 trillion (S$2.780 billion) in nominal terms.
The block’s average growth is expected to be 3.3% over the next five years, compared to a regional average of 2.5%.
Singapore’s trade and investment with PA accounts for almost a third of the republic’s total trade and investment with Latin America, MTI noted.
There are over 100 Singaporean companies in the PA, covering sectors such as trade, technology and innovation, and infrastructure.
Mr. Tan, who is in Mexico from Sunday to Thursday (May 19), called on his counterparts from the Mexican ministries of foreign affairs, culture, finance, agriculture and rural development, as well as leaders of the Senate Mexican.
He also met with Mexican companies and business leaders, as well as Singaporean companies based there.
He spoke to Mexican youth and businesses during a fireside chat at Mexico’s Tec de Monterrey University.
Mr. Tan is accompanied by officials from MTI and Enterprise Singapore during his visit.
Singaporean companies in the Pacific Alliance include e-commerce platform Shopee, food and agribusiness company Olam International, blockchain accelerator Tribe Accelerator and technology solutions company CrimsonLogic.