Negotiations for the Peru Singapore Free Trade Agreement  (PeSFTA) were launched on 19 November 2004 following a meeting between Prime Minister Lee Hsien Loong and then Peruvian President Alejandro Toledo Manrique at the sidelines of the APEC Economic Leaders Meeting in Santiago, Chile. The negotiations commenced formally in February 2006.

The PeSFTA is a comprehensive agreement covering areas such as trade in goods, rules of origin, trade remedies, sanitary and phytosanitary (SPS) measures, technical barriers to trade (TBT), trade in services, investment, government procurement, customs procedures, temporary entry of persons, competition policy, institutional provisions and dispute settlement.

The PeSFTA was signed on 29 May 2008 by Peru's Minister for Foreign Trade and Tourism, Ms Mercedes Araoz and Singapore’s Minister for Trade and Industry, Mr Lim Hng Kiang.

The Agreement entered into force on 1 Aug 2009.