With multilateralism under pressure, cooperate more across trade groupings: PM Wong
This is one of three areas where Apec economies can work together for their mission of free and open trade, he says
[GYEONGJU] With multilateralism under pressure, Asia-Pacific Economic Cooperation (Apec) economies should step up cooperation across different trade groupings, to realise the long-term goal of an Asia-Pacific free trade area, said Prime Minister Lawrence Wong on Friday (Oct 31).
This is one of three areas where Apec members can work together, he said in his intervention at the first session of the Apec Economic Leaders’ Meeting.
There are already comprehensive free trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and Regional Comprehensive Economic Partnership, he noted.
“These are important building blocks, and we should build bridges between them to promote interoperability.”
He also highlighted sectoral agreements such as the Green Economy Partnership Agreement, for which Singapore, Chile and New Zealand launched negotiations earlier that morning, and new platforms such as the Future of Investment and Trade Partnership.
“Apec can nurture these initiatives, build bridges around them and scale up the promising ones,” he said.
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Under pressure
Multilateralism is under pressure, and while the global economy may be resilient now, “there are drawing headwinds and rising pressure towards fragmentation”, noted PM Wong.
In this uncertain times, it is important to remember Apec’s founding mission of championing free and open trade and investment, he said.
Apart from cooperating across groups, Apec member economies must shore up the rules-based multilateral trading system with the World Trade Organization (WTO) at its core.
This entails reforming the WTO so it remains effective and relevant, he added. He agreed with earlier calls for Apec to support the launch of the reform process at the WTO Ministerial in Cameroon next year.
Noting that the WTO’s consensus decision-making principles have become “a recipe for paralysis”, he called for new mechanisms for ‘outcome-oriented’ decision-making.
The WTO must also take a flexible approach to multilateralism, so like-minded countries can move first and others can join when ready.
A third area is for Apec economies to explore “practical projects” with the private sector in areas such as trade facilitation.
Simplifying and digitising trade processes can reduce business costs, he noted, adding that he looks forward to the establishment of an Apec Centre of Excellence for Paperless Trade, which the Apec Business Advisory Council has recommended.
“We can transform Apec into a paperless trade region – driving efficiency while accelerating sustainability and integration.”
He concluded: “Apec can make a difference by embracing the spirit of cooperation, being pragmatic, and staying forward-looking.”
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