Fourteen countries from across continents on Tuesday (16 Sep) announced an initiative committed to open, fair trade and enhancing investment flows.

The Future of Investment and Trade (FIT) Partnership was launched at a virtual ministerial meeting, with representatives issuing a joint declaration in support of a rules-based multilateral trading system, and reaffirming the vital role that foreign direct investment (FDI) plays in developing infrastructure, fostering international trade, and enabling sustainable economic growth.

The founding members are Brunei, Chile, Costa Rica, Iceland, Liechtenstein, Morocco, New Zealand, Norway, Panama, Rwanda, Singapore, Switzerland, the United Arab Emirates, and Uruguay.

The director-general of the World Trade Organization (WTO), Ngozi Okonjo-Iweala, was also present at the launch. Singapore was represented by Deputy Prime Minister Gan Kim Yong.

The members pledged to work together to develop “solutions-oriented initiatives” to strengthen the rules-based trading system, a joint statement said.

“The FIT Partnership will strive to amplify the collective influence of its members on the global stage,” it added.

The partnership seeks to be an “agile platform” for trade-related collaborations; this includes strengthening supply chains, removing non-tariff trade barriers, facilitating investment, and integrating emerging technologies.

As the partnership grows, it will invite other countries interested in these objectives and willing to uphold its principles. This ensures the initiative remains inclusive, agile and adaptable to a rapidly changing global landscape, the statement said.

This comes as measures that restrict trade risk fragmenting the global economy, dampening global economic growth, and heightening inflationary and unemployment pressures.

The statement said: “For small and medium-sized countries that rely on open and fair trade with the world, the rules-based multilateral trading system is vital to our stability and prosperity.”

In the ministerial declaration, the 14 leaders laid out four objectives the partnership will work towards.

The first is affirming the need for principles of open and fair trade, and adherence to the rules-based trading system. The second objective is support for inclusive growth through enhancing access to resources and technology.

Addressing contemporary and emerging trade issues is the third, and enhancing FDI flows with the aim of fostering greater and more sustainable growth is the fourth objective.

The FIT Partnership agrees to adhere to a set of principles, which include minimising and removing “unnecessary barriers” to trade and investment, promoting transparency and predictability in trade and investment policies, and facilitating a level playing field.

The ministers also outlined four priorities: supply chain resilience; investment facilitation; non-tariff barriers and trade facilitation; and recognising trade technology as a horizontal enabler that can enhance progress across its priorities.

The FIT Partnership will develop “concrete actions” to advance these priorities, the declaration said.

In a separate statement by Singapore’s Ministry of Trade and Industry, DPM Gan said Singapore hopes the FIT Partnership will be a catalyst for innovation that can be scaled up to the multilateral level to strengthen the WTO.

“Singapore will continue to work with our partners to ensure that our economies remain open, connected, and future-ready,” he added.

A set of “concrete initiatives” are expected to be endorsed and announced at the inaugural FIT Partnership Ministerial Meeting to be hosted by Singapore on the sidelines of the Bloomberg New Economy Forum from 19 to 21 Nov.

Source: The Business Times © SPH Media Limited. Permission required for reproduction.