Singapore, Peru sign free trade agreement
SINGAPORE, May 30 (Xinhua) — Singapore and Peru have signed a Free Trade Agreement (FTA) in order to strengthen bilateral ties, said a government statement here Friday.
It was signed by Peru’s Minister for Foreign Trade and Tourism Mercedes Araoz and Singapore’s Minister for Trade and Industry LimHng Kiang in Peru’s capital Lima on Thursday.
Negotiations on the FTA began in 2004 and concluded in 2007. This FTA is the second bilateral FTA between Singapore and a South American country, said the statement.
The "broad-based and comprehensive agreement" covers issues such as trade in goods, rules of origin, to competition policy and dispute settlement.
Over 87 percent of Singapore’s total exports to Peru will benefit from duty free treatment immediately upon entry into force of the FTA.
Tariffs for the rest of the goods currently exported by Singapore to Peru will be phased out over a 10 year period. All Peruvian exports will be granted tariff-free access to Singapore immediately.
The FTA will also provide Peruvian and Singapore companies with enhanced access to each other’s markets, and will enhance trade and investment links between the two countries.
Peru is Singapore’s 17th largest trading partner in Latin America, with trade in 2007 valued at 37.2 million U.S. dollars, while Singapore is Peru’s largest destination for manufactured exports in Southeast Asia.