This Wednesday, Peru ratified, by supreme decree, the free trade agreement between the Pacific Alliance there Singapore (PASFTA, for its acronym in English) and becomes the first country of this regional integration mechanism to strengthen a trade relationship with this country located in Southeast Asia.
The Peruvian Ministry of Foreign Affairs has asked members of the Pacific Alliance to maintain their pragmatism without politicization
The Ministry of Foreign Affairs of Peru stressed that this block has achieved important achievements in economic and commercial integration and cooperation since its creation, which is why it reaffirmed its commitment to continue the work of this alliance.
Thus, PASFTA promote trade and investment opportunities for Peruvian micro, small and medium-sized enterprises, as well as the promotion of innovation, e-commerce, public procurement, temporary admission of entrepreneurs and greater Peruvian participation in global value chains.
He free trade treaty means an opportunity to promote intra-bloc links with Asian markets. With the entry into force of this trade agreement, materials from one or more members of the Pacific Alliance incorporated into a good produced in the territory of Singapore will be considered as originating in that Asian country.
The Ministry of Foreign Affairs asked AMLO not to politicize the Pacific Alliance and demanded that he cede the presidency to Peru
The Ministry of Foreign Affairs stressed that “the transfer of the presidency pro tempore is not a concession” but “an obligation contained in a treaty which binds the four countries” which make up the Alliance
Similarly, it will allow materials originating in Singapore, incorporated into goods produced in the territory of a member of the Pacific Alliance are considered to originate in that member country.
The treaty will complete the economic and trade relationship between Peru and Singapore, which is currently given by a bilateral trade agreement in force since 2009 and by the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) ratified in 2021, with the aim of contributing to the growth of Peruvian exports and a commitment to greater trade and economic integration with markets in the Asia-Pacific region.
Once PASFTA comes into force for the four member countries of the Pacific AllianceSingapore will become the first Associated state of the bloc and in such a state, this Asian country will participate in the meetings of the various instances of the integration mechanism.
Mexican MP assures that AMLO seeks to position itself as an “ideological leader” and of the left in Latin America
Sofía Carvajal argued that the president of Mexico violated foreign policy principles by questioning the government of Dina Boluarte and not ceding the presidency pro tempore to Peru.
In addition, you will have the opportunity to lead activities that contribute to the promotion of Pacific Alliance and may, with member countries, develop work on issues of mutual interest in economic-trade and cooperation areas, such as the digital economy, technology and innovation; green growth and sustainability; connectivity, logistics and trade facilitation; business links, personal contacts, education and capacity building.
The fact that Peru was the first of the member countries of the bloc to ratify this treaty, comes after last Saturday, its government affirmed that the Pacific Alliance “must not be politicized” and accused the President of Mexico, Andrés Manuel López Obrador (AMLO)to deviate from the principles of the bloc”, since he refused to cede his presidency pro tempore (PPT) in Peru, as it corresponds, for having considered that the government of Dina Boluarte is “false”.
There Peruvian Ministry of Foreign Affairs rpointed out, in a statement, that López Obrador “refuses to comply with the obligation that binds his State to transfer the PPT to Peru, because he has decided to support the coup d’etat of former President Pedro Castillo, broadcast live in his message to the nation on December 7, 2022″.
“With this, President AMLO departs from the principles contained in the Framework agreement referring to democracy and the rule of law and has politicized the Pacific Alliance, with the sole aim of weakening it,” he said.
Likewise, the Peruvian Ministry of Foreign Affairs He stressed that the transfer of the presidency pro tempore to Peru “is not a concession, it is an obligation contained in a treaty that binds the four countries that make up the Alliance”.
– Singapore is the logistics and financial center of Southeast Asia, with a PBI per capita of about 95,000 USD.
– He Peru-Singapore merchandise trade It is made up of goods that Peru exports (29% of trade), highlighting zinc (55% of exports), fruits (15%) and shark fins (9%); and goods that Peru imports (71% of trade), mainly nutritional supplements (20% of imports), plastic (11%) and methionine (10%).
– Over the past 12 years, the stock of foreign direct investment from Singapore to Peru reached $366 million, concentrated mainly in the energy and fisheries sectors.