Free trade counteracts global shocks - ADB

The Asian Development Bank (ADB) called on economies to continue with free trade and free movement of capital and not resort to protectionism amid the world’s vulnerabilities to various shocks.

- LOUISE MAUREEN SIMEON

During the opening session of the multilateral lender’s 57th annual meeting held recently in Tbilisi, Georgia, ADB president Masatsugu Asakawa said people in the Asia Pacific region are facing challenges that demand close attention and coordination.

This is amid continued geopolitical tensions in many parts of the world that affect supply chains and the unrelenting impact of worsening climate change.

Asakawa maintained that globalization is not dead despite what happened during the pandemic and with current conflicts across economies.

“It is true that global trade and supply chains are vulnerable to shocks. But the answer cannot be protectionism and segmentation,” Asakawa said.

“Free trade and free movement of capital have benefited our region for decades, and this must be the way forward,” he said.