As protectionism rears ugly head, trade cooperation vital for recovery

WITH scores of countries around the world dealing with a damaging recession and fresh waves of coronavirus infections, there are louder calls for more governments to discard their protectionist agenda and realise that such behaviour is self-defeating and will harm their economies and people in the long run.

As this troubled year draws to a close next week, there has been some positive news on the trade cooperation front heading into 2021. In mid-November, 15 nations - including Singapore, China and Japan - finally inked the Regional Comprehensive Economic Partnership (RCEP) free trade agreement (FTA), currently the world's largest free trade pact and arguably the most significant signed in years given the vast size and scope.

Days later, the leaders of the Asia-Pacific Economic Cooperation (Apec) bloc issued their first joint statement in three years and, crucially, pledged to work towards free, open and non-discriminatory trade and investment to give a much-needed boost to their economies. Apec, whose members account for 60 per cent of the world's total GDP, also pledged to refrain from backtracking and resorting to protectionist measures to keep markets and borders open.