Malaysia, Paraguay join new trade grouping at Singapore meeting

Future of Investment and Trade Partnership issues declaration on supply chain resilience

- Ovais Subhani Senior Business Correspondent

Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong giving his opening remarks during the Future of Investment and Trade Partnership ministerial meeting at the Shangri-La hotel on Nov 18.

(ST PHOTO: BRIAN TEO)

Malaysia and Paraguay are the latest members of the Future of Investment and Trade (FIT) Partnership, now a coalition of 16 small and medium-sized countries that aims to advance open and fair trade practices amid growing challenges to the global trading system.

The first in-person ministerial meeting of the group, held at Shangri-La hotel in Singapore on Nov 18, issued a declaration on supply chain resilience, to enhance cooperation and coordination in identifying or mitigating ongoing or imminent major supply chain risks and disruptions.

The signatories to the nonbinding supply-chain agreement are Brunei, Chile, Costa Rica, Iceland, Liechtenstein, Malaysia, New Zealand, Norway, Panama, Singapore, Switzerland, the United Arab Emirates (UAE) and Uruguay.

Three members Morocco, Rwanda and Paraguay - opted not to join the declaration for now.

The group maintains the principle of flexible geometry the opposite of the rigid structures of most trade agreements - allowing members who are ready and willing to advance on specific initiatives first, while keeping the door open for other members to join as and when they are ready to do so.

The meeting also welcomed representatives from six nonmember countries - Australia, Canada, Indonesia, Peru, the Philippines and Thailand that participated as observers to better understand the FIT Partnership and its initiatives.