Panama-Singapore Free Trade Agreement (PSFTA)

• Tariff Elimination and Improved Market Access: The PSFTA has eliminated tariffs for 98% of Singapore’s exports to Panama and all duties for Panamanian products that enter Singapore.

• Key exports that will benefit from the FTA include refined oil, chemicals, electronics, beer and processed food.

• Rules of Origin and Customs Procedures: Exporters and producers from Singapore no longer require a formal certificate of origin to qualify for preferential treatment. Companies only need to produce a certificate of origin on export invoices. The self-certifying system improves business competitiveness, as it generates time and cost savings.

Singapore and Panama have made commitments to provide non-discriminatory market access to each other’s markets, allowing businesses to compete on a level playing field. Key sectors that Singapore investors can benefit from include: (i) research and development; (ii) courier services; and (iii) transport services.

The PSFTA provides safeguards against unreasonable expropriation, outlines provisions for non-discriminatory treatment, and facilitates dispute settlement processes. This gives investors and businesses in Panama and Singapore greater certainty over their investments.

The PSFTA has established a single government procurement market. Under the Government Procurement chapter, companies are ensured fair and non-discriminatory treatment in competing for government contracts. This gives companies an equal opportunity to gain access to Panama’s Government Procurement market.