Business Roundtable organised by the Latin American Chamber of Commerce as part of the State Visit of the President of Paraguay - Ms Grace Fu

It is a pleasure to join you today for this business roundtable and networking session hosted by the Latin American Chamber of Commerce. My thanks to Mr Enrique Barcelli, Ms Angela Torres and their team for organising this session.

Singapore and Paraguay may be many thousands of miles apart, and we may not share a common language or culture. However, we enjoy a warm bilateral relationship, and we share important similarities. We both have relatively small populations, and we are both surrounded by much larger neighbours. We are also pro-trade and support international partnerships and multilateralism. 

At present, trade between Paraguay and Singapore is modest, with much room to grow. In December 2023, Singapore and the MERCOSUR signed a landmark free trade agreement. The MERCOSUR-Singapore Free Trade Agreement, or MCSFTA, will be the first free trade agreement between Paraguay and Singapore, and it will establish the infrastructure and frameworks to support greater bilateral trade and investment. Once in force, the MCSFTA will provide regulatory certainty and assurance, and we hope that this will encourage more Singapore companies to explore the opportunities in Paraguay and the MERCOSUR region, and vice versa. 

For example, there are provisions in the MCSFTA that simplify and expedite customs procedures, with specific commitments to ensure the swift release of perishable goods by our respective customs authorities. Paraguayan service providers will also benefit from enhanced access to the Singapore market, enjoying the same treatment as their Singaporean counterparts in sectors including computer and R&D services. 

Beyond trade facilitation, the MCSFTA will also lay the foundation for cooperation on initiatives such as supporting the internationalisation of our respective Micro, Small and Medium Enterprises (MSMEs), to help them build capabilities and connect with new partners in each other’s regions. 

I look forward to the coming-into-force of the MCSFTA between Paraguay and Singapore, once we have completed our respective ratification procedures.

There is untapped potential in the Singapore-Paraguay economic relationship. One promising area is in agri-food trade. As a global trading hub with a strong focus on food security, Singapore continually seeks high-quality and reliable food sources. Paraguay, with its strengths in poultry, beef and agricultural production, is well positioned to support these needs as well as the needs of the larger Southeast Asian region. 

Our food safety and regulatory agencies have been working closely to facilitate the necessary approvals for Paraguay to export poultry, pork and beef to Singapore. We look forward to welcoming Paraguayan meat and other agri-products into the Singapore market in the near future.

There is also significant potential in connecting our carbon services ecosystems and players to drive credible, high-impact climate solutions, as we work together to address the global challenge of climate change.

President Peña with his administration has taken decisive steps to position Paraguay as a key player in the global carbon market. Through the implementation of new legal frameworks, Paraguay is enabling the international trading of high-integrity carbon credits, in sectors such as forestry and ecosystem restoration.

Singapore, in turn, has developed into a vibrant carbon services and trading hub, offering the infrastructure, expertise and market access needed to scale up carbon finance globally. Today, we have over 120 companies in our carbon services and trading ecosystem. We welcome the incubation of more of these businesses in Singapore and are keen to be involved in the co-creation of solutions to spur on the development of carbon markets.

By linking Paraguay’s robust carbon credit potential with Singapore’s global platforms, we can unlock significant opportunities, not just for climate action, but also for our businesses to innovate and invest in the green economy. I look forward to the concrete partnerships and commercially viable projects that will emerge from this collaboration, which will advance our joint climate ambitions and deliver tangible benefits to local communities.

Today’s event, organised by the Latin American Chamber of Commerce with the support of Enterprise Singapore and Paraguay’s investment and export agency REDIEX, is an example of the many outreach initiatives by our agencies and Trade Associations and Chambers to grow awareness among the Singapore business community of the fast-growing and dynamic Latin American region. It is an honour to have President Peña and his distinguished delegation here to share on the investment opportunities in Paraguay.

To the Singapore companies in attendance today, your presence is a strong signal of your interest to explore new opportunities for trade and investment, and your openness to new possibilities. I hope that the information shared today, and the new connections made will lead to fruitful and mutually beneficial partnerships.

Thank you again to the Latin American Chamber of Commerce for hosting us this afternoon. I look forward to a productive session ahead.