In a bid to promote greater investment flows, Singapore and Colombia have this week signed an Investment Guarantee Agreement (IGA) in Bogota. This is according to the Ministry of Trade and Industry Singapore. Singapore company registration specialist Rikvin recognizes the agreement as a step towards widening Singapore’s network of economic partners. Singapore has to date 41 IGAs in force.
The IGA provides a legal framework for their investments and includes key features such as non-discriminatory treatment for investors and investments in both countries; prompt, adequate and effective compensation in the event of expropriation; guarantee transfers of capital, proceeds and other funds related to investments; and access to international arbitration to resolve investment disputes.
Analysis by Rikvin shows that the IGA builds on a memorandum of understanding (MOU) signed between IE Singapore and the National Business Association of Colombia (ANDI) last year. The MOU was signed to improve collaboration between Singaporean and Colombian companies and to encourage Singapore companies to tap Colombia as part of their emerging market growth strategies.
The latest IGA with Colombia demonstrates yet another instance of Singapore’s commitment to bolstering its network of economic partners.
Amid a slowdown in China and slow recovery in Europe, we are optimistic that Singapore firms are in good stead to include Colombia as part of their emerging markets strategies and tap opportunities in said sectors.”
According to IE Singapore, Colombia is Singapore’s 59th largest trading partner in 2012. Total trade amounted to S$1.06 billion, up 40.1% from S$755.9 million in 2011. In addition, Singapore’s exports to Colombia amounted to S$138.7 million in 2012, up from S$120.1 million in 2011.
Colombia also offers access to larger markets under the Pacific Alliance, which consists of Mexico, Chile and Peru. This then represents a combined market of 215 million consumers with a total GDP of over US$2 trillion.
Opportunities for Singapore companies are for the taking in sectors such as oil & gas, agri-commodities, e-Government, infrastructure (ports, airports, urban transport, logistics) development, aerospace (maintenance, repair & overhaul) and consumer goods.
Commenting on the agreement, Mr. Satish Bakhda, Head of Operations at Rikvin said, “The latest IGA with Colombia demonstrates yet another instance of Singapore’s commitment to bolstering its network of economic partners. Amid a slowdown in China and slow recovery in Europe, we are optimistic that Singapore firms are in good stead to include Colombia as part of their emerging markets strategies and tap opportunities in said sectors.”