Singapore and the United Mexican States signed an Investment Guarantee Agreement today at the sidelines of the Asia Pacific Economic Conference (APEC) Ministerial Meeting.

The agreement was signed by Singapore's Minister for Trade and industry, Mr Lim Hng Kiang and Mr Gerardo Ruiz Mateos, the Secretary of Economy of Mexico.

The Agreement demonstrates the deepening bilateral economic relations between the two countries.

It also augers well for the business communities, as investors from both nations can benefit from greater certainty and protection when investing in the other country.

Total bilateral trade between Singapore and Mexico amounted to S$3 billion in 2008, a 25 per cent increase from 2007, making Mexico Singapore's fourth largest trading partner in Latin America and 33rd largest worldwide.

As at end 2007, Singapore's stock of direct investment in Mexico stood at S$925 million while Mexico's FDI to Singapore was estimated to be S$183 million.

Singapore investments in Mexico are mainly in contract manufacturing for electronics OEMs, logistics and infrastructure.

Under the Agreement, investors will be accorded non-discriminatory treatment, compensation in the event of expropriation or nationalisation of their investments, free transfer of capital and returns from investment and access to international arbitration for settlement of investment-related disputes between the investor and the host state.