14 smaller WTO members, including Singapore, tie up to support open and fair trade

(Photo credit: ST Photo/Brian Teo)

Source: The Straits Times

Fourteen small and medium-sized members of the World Trade Organisation (WTO), including Singapore, established a partnership on Sept 16 to boost their trading links, amid strains on the rules-based trading system.

The other members of the Future of Investment and Trade (FIT) Partnership, launched in a ministerial meeting held virtually, are Brunei, Chile, Costa Rica, Iceland, Liechtenstein, Morocco, New Zealand, Norway, Panama, Rwanda, Switzerland, the United Arab Emirates (UAE) and Uruguay.

Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong, who represented Singapore at the meeting, said the partnership reflects member nations’ collective purpose to support the rules-based multilateral trading system, and address the challenges of today and tomorrow.

“We hope the FIT Partnership will be a catalyst for innovation that can be scaled up to the multilateral level to strengthen the WTO,” he said in a statement.

“Singapore will continue to work with our partners to ensure that our economies remain open, connected and future-ready.”

The Ministry of Trade and Industry (MTI) said the new initiative by the 14 partners came in the light of recent developments in global trade that have placed significant strain on the rules-based trading system, threatening to fragment markets and dampen global growth.

Economic observers have said that US President Donald Trump’s on-and-off tariff policy threatens to depress global trade and stall economic growth, especially for small and open economies.

At the launch, which was also attended by WTO director-general Ngozi Okonjo-Iweala, the 14 partners issued a joint ministerial declaration setting out the partnership’s objectives, principles and priorities.

These reflect the partners’ belief in international trade and its role in driving prosperity, enabling growth and innovation, and building resilience against economic shocks.

The members agreed that the body will serve as an agile and informal platform to foster cooperation between private and public partners and catalyse new initiatives that address emerging challenges and opportunities in three domains – supply chain resilience; investment facilitation; and non-tariff barriers and trade facilitation.

The FIT Partnership will also act as an enabler of trade technology.

MTI said Singapore will host the inaugural FIT Partnership Ministerial Meeting on the sidelines of the Bloomberg New Economy Forum in Singapore scheduled for Nov 19 to 21.

Ministers of the body agreed to work towards endorsing concrete initiatives that will be announced at the meeting in November.

“The FIT Partnership is designed to be a principles-based grouping that will champion a forward-looking trade agenda, address emerging challenges and opportunities in trade and investment, and promote dialogue between public and private stakeholders,” said a joint statement by the 14 member countries.

Measures that restrict trade risk fragmenting the global economy and dampening economic growth, increasing the risk of inflation and unemployment.

“The FIT Partnership will champion open and fair trade so that all countries can benefit from increased economic security and job opportunities,” said the members.

The founding members will work together to develop solutions-oriented initiatives to strengthen the rules-based trading system and will strive to amplify the collective influence of the members on the global stage.

The FIT Partnership plans to invite other countries that are interested in its objectives and willing to uphold its principles to join, ensuring that the initiative remains inclusive, agile and adaptable to a rapidly changing global landscape.

The initiative is in line with Singapore’s plans to boost trading relations with other like-minded countries to mitigate the negative impact of US tariffs on global trade.

Speaking at the virtual meeting, DPM Gan said: “Small and medium-sized countries, like us, which rely on a predictable, open and level playing field for growth and development will be most affected, but we have agency.

“We are nimble and agile, and can play a pivotal role as pathfinders, bridge-builders and advocates for a system that is open, fair and fit for the future.”

Mr Gan said the partnership will start with concrete initiatives that will help businesses navigate an increasingly complex and digital global environment.

New Zealand Trade and Investment Minister Todd McClay said discussions on the establishment of the partnership began 12 months ago among four countries – New Zealand, Singapore, the UAE and Switzerland – which reached agreement during a quadrilateral meeting of trade ministers in Switzerland in May this year.

“We are a group of small and medium-sized trade-dependent nations determined to take a proactive approach to opening markets, attracting investment, and removing barriers,” he said on New Zealand’s government news portal Beehive.

“With one in four New Zealand jobs dependent on trade, it’s vital we are out hustling and shaping new opportunities. This partnership will help ensure our companies are well placed to compete and succeed, and will contribute to the government’s goal of doubling the value of exports in 10 years,” he said.