G-20 summit hits positive notes but also leaves unfinished agenda

THE latest summit of the Group of 20 (G-20), which ended in the Chinese city of Hangzhou on Monday, was held against a sobering backdrop: sluggish global economic growth which the International Monetary Fund (IMF) predicts will be just 3.1 per cent this year; a slowdown in world trade; rising populism and a backlash against globalisation in many advanced economies; serious income inequalities in large parts of the world; and a refugee crisis triggered by brutal wars in the Middle East.

G-20 leaders deserve credit for trying to address some of these problems, but there were also striking examples of major issues on which there was little or no progress. Perhaps the most significant positive that emerged was the group's unequivocal endorsement of globalisation and open trade. In their communique, the leaders expressed their "determination to ensure a rules-based, transparent, non-discriminatory, open and inclusive multilateral trading system". They also endorsed the "important role" of bilateral and regional trade agreements, adding that "we reiterate our opposition to protectionism on trade and investment in all its forms".

These statements stand in stark and refreshing contrast to some of the current trends that we witness, in relation to trade, on both sides of the Atlantic. In the United States, the main presidential candidates have opposed the Trans-Pacific Partnership (TPP) - a landmark trade agreement involving 12 countries, including Singapore, which has already been signed and is awaiting ratification. For good measure, the Republican candidate Donald Trump has vowed to impose draconian protectionist measures on China, Mexico and other countries. At the same time, the proposed Transatlantic Trade and Investment Partnership (TTIP) between the US and the European Union (which the US presidential hopefuls also oppose) has run into serious trouble in the EU - made worse by the exit from the grouping of Britain, a key supporter of the TTIP.