Rescuing globalisation

THE future of the international trading system is under threat not only from the immediate danger of a US-China trade war but also from a longer-term reaction against globalisation. These were key points addressed at the first Singapore Trade Policy Forum, organised by the Centre for Multilateralism Studies of the S Rajaratnam School of International Studies at Nanyang Technological University. The Forum brought together 40 senior people from governments, business and universities across the Asia-Pacific region for an in-depth discussion of how trade policies need to change to meet these threats.

There was convergence on the seriousness and significance of the risks. These include a protracted trade war, Brexit fallout, weakening of the WTO Dispute Settlement mechanism and a lack of inclusiveness in trade-driven growth. Businesses are concerned with a US trade discourse which sees manufacturing jobs as the only ones worth focusing on, at other industries' expense.

Participants agreed that there were no quick fixes. The immediate priority was to contain the damage as far as possible and, looking ahead, to mount a broad-based campaign to renew the consensus for a stable rule-based trading system. Governments and businesses in this region are uniquely well placed to take a lead in the short-term response, at the upcoming Asean and Apec summits and through concluding the RCEP negotiations. As trade success stories, they are also crucial to rewriting a positive trade narrative.