Singapore’s Bilateral Agreements with Mexico
Pacific Alliance – Singapore Free Trade Agreement (PASFTA)
With the newly concluded Pacific Alliance – Singapore Free Trade Agreement (PASFTA) in 2021, doing business in Mexico is getting easier for Singapore companies.The PASFTA with the Pacific Alliance trade bloc (comprising Colombia, Chile, Mexico, and Peru) will pave the way for Singapore companies to access a combined market of 223 million people and a combined GDP of US$4.05 trillion, the 8th largest economy in the world.
Singapore–Mexico Double Tax Avoidance Agreement (DTA)
DTAs provide relief from double taxation in the situation where income is subject to tax for both countries.
The provisions of the DTA apply to persons who are residents of one or both of the Contracting States. Please refer to IRAS for more information.
Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
CPTPP eliminates tariffs for Singapore’s exports to CPTPP markets.
The CPTPP entered into force in December 2018. A key benefit of the CPTPP is that import tariffs on Singapore’s trade with Mexico (which Singapore had no trade agreement with) have been eliminated. Other key benefits are trade facilitative Rules of Origin, greater access to services sectors, investment protection and guarantees, more opportunities in government procurement and a facilitative framework for the digital economy.
International Investment Agreement (IIA)
IIAs promote and protect investments between two countries.Singapore and Mexico signed a Bilateral Investment Treaty on 3 April 2011. The IIA promotes greater investment flows between Mexico and Singapore, and sets out standards of protection for investments made in one country by investors from the other country. Read more
Making inroads into Mexico: Promising opportunities for Singapore companies
Amid supply chain disruptions, the Embassy of Mexico and EnterpriseSG quickly mobilised efforts to ensure a steady flow of essential supplies between Mexico and Singapore.
Singapore companies look to Mexico as nearshoring gains ground
Geopolitical tensions and supply chain uncertainties are prompting some manufacturers to consider setting up operations in Mexico to produce items for the US market.