Trade and the world economy · 4 mentions in this passage
Lower trade costs in these decades have boosted global real GDP by an estimated 6.8%, and in the case of low income countries, by around 33%. Under the GATT and subsequently the WTO, disputes even between unequal powers could be settled by adjudication rather than the exercise of unilateral coercion But we all know the multilateral trading system has frayed. This year's WTO conference in Yaoundé could not even reach consensus on several key issues, including the moratorium on the customs duties for electronic transmissions, which lapsed tariffs and supply chain restrictions have also returned as instruments of coercion. The consequences of all this cannot be overstated for Singapore. Trade is three times our GDP. For many in this hall, access to markets and technology are absolutely essential for our development. When the rules governing trade are eroded, all of us will pay the price. I know that consensus amongst 193 states is difficult, but it remains the gold standard. And I would ask all of you to recollect the BB, NJ agreement which entered into force this year. This is clear evidence that even in this time, we can still build common rules for shared challenges. And Singapore is proud that our ambassador, Vina Lee, presided over the negotiations that concluded this agreement by consensus. Having said that, even when consensus is elusive, we cannot allow collective action to be held hostage or to be paralysed. We need more flexible coalition of states and partners who are willing and able to move forward, whilst remaining open to others to join when they are ready. Such coalitions already serve large and small economies alike The Rcep, the Regional Comprehensive Economic Partnership, is the largest trade agreement in the world. The Cptpp, the Comprehensive and Progressive Trans-Pacific partnership now stretches from Asia to Latin America to the United Kingdom, and in July 19th, small and medium sized trading nations of the Future of Investment and Trade Partnership met in Auckland. Not to negotiate a grand bargain, but to systematically reduce trade frictions and to strengthen supply chain resilience. Excellencies, this is not a retreat from multilateralism. It is a pragmatic and flexible effort to sustain cooperation when broader agreement is not yet possible, while remaining open for those who are ready to join later on. The objective remains the same to preserve the benefits of cooperation, widen participation over time, and ultimately bring these arrangements into the multilateral global architecture. Third, we must collectively formulate new rules and be prepared to create new institutions, if necessary, for new technologies.
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