'Multi-bilateral' trade order the way forward - and it's achievable

Having a network of loosely coordinated bilateral and regional trade deals might be messy, but is preferable to the kind of G20 bilateral deal-making that could splinter the world.

Published Mon, Jul 1, 2019 · 09:50 PM

China

IT IS now more than a decade since then-French President Nicolas Sarkozy declared that "the G20 foreshadows the planetary governance of the 21st century". Yet, the latest summit in Japan at the weekend underlined that there is a significant danger that the forum - prized by member states for the status it brings - may potentially wither away as a key multilateral organ in the face of resurgent bilateralism.

The G20 - which accounts for some 90 per cent of global GDP, 80 per cent of world trade, and around 66 per cent of global population - has been a key political story since the turn of the millennium. Upgraded from a finance minister body to one where heads of state have met since 2008, it was supposed to be a step toward a more inclusive global leadership in the liberal world order.

The intent was nothing short of seizing the mantle from the G7 as the premier forum for economic cooperation and economic governance. But that has not happened in the decisive way expected.