Singapore, Chile, and New Zealand have kicked off formal negotiations for the Green Economy Partnership Agreement (GEPA), a pact aimed at harmonizing trade rules to boost environmental goods and services across borders. The launch occurred on October 31, 2025, during the Asia-Pacific Economic Cooperation (APEC) leaders’ summit in Gyeongju, South Korea, with trade ministers Grace Fu of Singapore, Alberto van Klaveren of Chile, and Todd McClay of New Zealand signing the agreement under the watchful eyes of their respective prime ministers and presidents, Lawrence Wong, Gabriel Boric, and Christopher Luxon. This trilateral effort marks a bold step in embedding sustainability into international commerce, addressing the urgent need for coordinated action as global economies race toward net-zero emissions targets.
The GEPA seeks to dismantle trade barriers for green technologies, establish unified standards for items like sustainable aviation fuel, carbon credits, and renewable energy certificates, and promote low-carbon innovations to accelerate the shift to resilient supply chains. Building on a Joint Working Group on Trade and the Green Economy formed in November 2024 during the previous APEC meeting in Peru, the pact complements ongoing multilateral discussions at the World Trade Organization (WTO) and APEC forums. It positions the three nations as trailblazers in turning environmental imperatives into economic opportunities, potentially unlocking billions in investments for clean tech and sustainable practices.
Singapore’s Prime Minister Wong said the pact would strengthen “coherence and common foundations” for green cross-border flows, arguing that trade can accelerate the global green transition by moving essential goods, services, technologies, and finance. Chile’s President Boric cited his country’s progress, now generating 70% of its electricity from cleaner sources, and expressed confidence that the agreement would deliver greater opportunities and benefits for citizens. New Zealand’s Prime Minister Luxon noted a worldwide shift toward more resilient and greener economies, calling it both a challenge and a major economic opportunity. Collectively, their comments highlight the pact’s potential to create jobs in emerging green industries, bolster a rules-based trading system, and limit disruptions caused by divergent climate policies.
This initiative reflects Singapore’s evolution from a bustling entrepôt to a global hub for innovative trade deals, often partnering with like-minded economies to influence broader agendas. It draws from the trio’s history of collaboration, including the foundational Trans-Pacific Strategic Economic Partnership that blossomed into the 12-nation Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in 2018, as well as the 2020 Digital Economy Partnership Agreement (DEPA), which South Korea joined in 2024 and now attracts interest from nine other economies.
(Sources: The Straits Times, Channel News Asia, The Business Times)
