Trade agreements are only useful if businesses use them to enter new markets and forge new partnerships, he says
[SINGAPORE] There are promising opportunities for Singapore’s businesses in Latin America, particularly in three areas: connectivity and supply chains, agri-food resilience, and green and digital economies.
Minister of State for Trade and Industry Foo Cexiang said this at the Singapore Business Federation’s (SBF) third LATAM Conference on Thursday (Sep 24). The event brought together 145 business leaders, government representatives and industry stakeholders from Singapore and Latin America.
“For Singapore and South-east Asian businesses, Latin America offers growing markets, trusted partners and expanding opportunities in food, sustainability, digital innovation and logistics,” said Foo, who is also Minister of State for Manpower.
“For Latin American businesses, Singapore’s strengths in trade, connectivity, finance and innovation make us a natural gateway into South-east Asia.”
Economic links between the two are growing rapidly, with trade in goods more than doubling over the past five years to S$35 billion in 2025, he said. Services trade also nearly doubled in the same period to more than S$21 billion in 2024.
Foo pointed to the Mercosur-Singapore Free Trade Agreement (MCSFTA) as a major milestone for Singapore-LATAM trade architecture. It provides preferential market access and creates opportunities for Singapore businesses to diversify their markets, strengthen supply chains and explore new markets.
The agreement entered into force for Singapore, Paraguay, Uruguay and Brazil earlier this year, and is expected to come into effect for Argentina in November. It will then be fully in force across Singapore and all four Mercosur founding members.
When fully ratified, MCSFTA will be the first such agreement for the LATAM economic bloc with a South-east Asian country.
“But trade agreements are only useful if businesses use them,” Foo said. “Their true value lies in helping businesses enter new markets more easily and forge new partnerships.”
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Key collaboration areas
One opportunity area he highlighted was connectivity and supply chains. There is considerable potential to more closely connect these networks – not just through ports and shipping, but also digitalisation and trade facilitation.
In this space, Singapore and Brazil have already signed a memorandum of understanding to establish the Singapore-Brazil Green and Digital Shipping Corridor. This combines Brazil’s renewable-energy resources and potential to produce alternative marine fuels with Singapore’s role as the world’s largest bunkering port and a leading global maritime hub.
Another area where Singapore and Latin America can collaborate is in agri-food resilience, with the latter being the largest net food exporter globally, and an important partner in strengthening food resilience for import-dependent Singapore.
Latin America already contributes to the diversity of Singapore’s food supply, Foo said, noting Brazil as a source for chicken, beef and pork, Mexico for avocados and Argentina for beef.
This April, the Singapore Food Agency (SFA) approved processed poultry and pork from Peru for import, he added.
“With our connectivity, logistics capabilities and trusted food-safety regulations, Singapore can serve as a platform for Latin American food producers seeking to reach consumers across South-east Asia,” he added.
Furthermore, the global transition towards cleaner energy is creating new collaboration opportunities for the two regions, Foo said, flagging Latin America as a major critical mineral source for clean energy technologies.
“In many ways, the world’s green transition will be shaped by resources that are abundant in Latin America and technologies that are being developed around the world.”
Green solutions will also provide cooperation opportunities, he said. Singapore has signed implementation agreements on carbon credits collaboration with Peru, Chile and Paraguay.
Similarly, in the digital economy, Latin America is fast emerging as a digital innovation hub, particularly in fintech and e-payments. It houses more than 3,000 fintech companies, and attracted nearly US$3 billion in venture capital in 2024.
“For Singapore and South-east Asian businesses, this points to a large and digitally savvy market,” Foo said, highlighting Shopee’s growth in Brazil after entering in 2019. “Our governments are also helping to create the conditions for more of such connections.”
Singapore and Chile, together with New Zealand, founded the Digital Economy Partnership Agreement (DEPA), to facilitate digital trade and promote interoperability between their digital economies.
Costa Rica recently acceded to DEPA, while Peru has concluded its accession negotiations.
Pathways have been built through agreements, but governments alone will not write the next chapter, Foo said.
“It will be written by businesses, by investors, by entrepreneurs. And by people who are willing to venture into new markets, build new partnerships and discover new opportunities together.”
