The Chile Singapore Free Trade Agreement (CSFTA) is a bilateral trade agreement that was signed on 18 November 2005. The agreement is aimed at promoting trade and investment between Chile and Singapore and providing a framework for the management of trade relations between the two countries. The agreement entered into force on 1 March 2006.
Under the CSFTA, both Chile and Singapore agreed to eliminate tariffs on a wide range of goods and services, including industrial and agricultural products. This agreement has resulted in a significant increase in trade between the two countries. In 2019, Chile exported over US$324 million worth of goods to Singapore, while Singapore exported over US$143 million worth of goods to Chile. The top exports from Chile to Singapore include copper, wine, and asparagus. The top exports from Singapore to Chile include petroleum, integrated circuits, and refined oil.
In addition to the elimination of tariffs, the CSFTA also includes provisions on intellectual property rights, government procurement, and dispute settlement mechanisms. The agreement provides a framework for the promotion of bilateral investment, including investment in infrastructure, mining, energy, and telecommunications.
The CSFTA has been beneficial for both Chile and Singapore. For Chile, the agreement has increased its access to the Singaporean market, which is a gateway to the rest of Southeast Asia. For Singapore, the agreement has provided greater access to the South American market and has allowed Singaporean companies to tap into the natural resources and market potential of Chile.
In conclusion, the Chile Singapore Free Trade Agreement has been successful in facilitating trade and investment between the two countries. The elimination of tariffs and the inclusion of provisions on intellectual property rights and dispute settlement mechanisms have provided a stable and predictable environment for businesses to operate in. As a result, the agreement has not only benefited Chile and Singapore but has also contributed to the growth of the global economy.