Singapore, 13 other small-medium countries launch partnership to support open and fair trade

SINGAPORE: Singapore and 13 other countries announced on Tuesday (Sep 16) the establishment of a partnership aimed at supporting open and fair trade, as global markets face growing fragmentation.

The Future of Investment and Trade (FIT) Partnership brings together Brunei, Chile, Costa Rica, Iceland, Liechtenstein, Morocco, New Zealand, Norway, Panama, Rwanda, Singapore, Switzerland, the United Arab Emirates and Uruguay.

The grouping was unveiled at a virtual ministerial meeting that was also attended by World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala.

Citing the significant strain on the global rules-based trading system in recent years, the Ministry of Trade and Industry (MTI) said the partnership was established in the face of fragmenting markets and dampening global growth.

“These developments have been concerning for small, medium and trade-dependent countries, like Singapore, who rely on an open and level-playing field for our growth and development,” the ministry said in a press release.

The partnership reflects its members' belief in international trade, and its role in driving prosperity, enabling growth and innovation and building resilience against economic shocks, said the ministry.

In a joint press release, the member countries said they would work together to "develop solutions-oriented initiatives to strengthen the rules-based trading system".

The FIT Partnership, described by MTI as "agile and informal" and non-binding, will act as a platform for the countries to collaborate on a range of trade topics. 

These include the strengthening of supply chains, the removal of non-tariff trade barriers, the facilitation of investment and the adoption and integration of emerging technologies.

It will also promote dialogue between public and private stakeholders and work to enhance foreign direct investment flows. 

Speaking at the meeting, Singapore Deputy Prime Minister Gan Kim Yong said the partnership's initiatives were "not abstract concepts but practical tools" that will help businesses navigate an increasingly complex and digital global environment. 

He also expressed hopes that the platform would catalyse innovation that could be taken to the multilateral level to strengthen the WTO.

“I am confident that through partnerships like this, we can build a more resilient, inclusive, and prosperous future,” he said.  

Echoing Mr Gan's sentiments about the partnership's "concrete initiatives", member countries said the platform would be “distinguished by its focus on having real-world impact”.

“As it grows, it will invite other countries interested in these objectives and willing to uphold its principles, ensuring that the initiative remains inclusive, agile and adaptable to a rapidly changing global landscape,” they said.

Singapore will host the first FIT Partnership Ministerial Meeting on the sidelines of the Bloomberg New Economy Forum in November.

The members’ ministers have agreed to work towards endorsing concrete initiatives to be announced at the meeting, said MTI.