These are vital foundations upon which rests the economic success and aspirations of Singapore, Australia, Malaysia, Indonesia and others in the region. Strong defence of the institution of world trade has been a long time coming, but it has finally arrived at the Osaka G20 meeting.
SINGAPORE (July 1): The world is waiting for the outcome of the meeting between Chinese President Xi Jinping and US President Donald Trump at the G20 meeting on June 28 and 29. This has become the main course on the menu but the real substance in the G20 is the momentum generated by Prime Minister Lee Hsien Loong’s statements at the Shangri-La Dialogue meeting a few weeks ago in Singapore. Momentum has been added by Indonesian President Joko Widodo. Recently, Australia too added its weight to this push, finally acknowledging that despite its so-called special relationship with the US, the collateral damage from Trump’s unilaterally declared trade war was dangerous on a global scale. Japanese Prime Minister Shinzo Abe is reported to also be supportive.
Lee’s statement was more nuanced than the megaphone stoushes favoured by some other countries. Global economic prosperity does not depend upon the victory of one side over another. It depends on the web of trade relationships that connect smaller countries with each other and with each of the economic giants. Like it or not, the World Trade Organization is a central part of this relationship. It is the WTO structure of sometimes irritating rules and regulations that is the glue that holds together the smooth operation of trade, trade financing and trade settlement.
