PM Wong urges Apec leaders to deepen economic integration in the region

LIMA – Take steps towards a free trade area spanning the Pacific Ocean, as difficult as that might be, Prime Minister Lawrence Wong urged world leaders at the

Asia-Pacific Economic Cooperation (Apec) summit in Lima, Peru.

He was speaking of the Free Trade Area of the Asia-Pacific (FTAAP), a trade deal involving all 21 Apec members that has been in the works for years.

Addressing leaders at an informal dialogue on Nov 15, PM Wong called for deeper regional economic integration and made suggestions on how Apec might achieve its goals.

“Step by step, we can put in place these developments to show that FTAAP is not a pipe dream,” he added.

PM Wong said the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and Regional Comprehensive Economic Partnership should be kept inclusive.

These trade pacts are key pathways for FTAAP and should be open to those who can and will meet accession standards, he added, noting this will expand benefits to existing and new members.

Leaders should also ensure existing partnerships stay fit for purpose, PM Wong said. For instance, Asean and its partners are upgrading their trade agreements, while CPTPP members are undertaking a general review of the deal.

In his speech, PM Wong noted that the world is at an inflexion point after decades of free trade and globalisation.

“Support for globalisation is weakening. There are widespread perceptions that the benefits of trade have been unfairly distributed,” he said.

“Geopolitical tensions are reconfiguring supply chains, and trade-restrictive measures are on the rise, both within and beyond Apec.”

This changing operating environment is straining the rules-based multilateral system and increasing the risk of wider economic fragmentation, PM Wong said.

Given this backdrop, it is timely to re-emphasise Apec’s original goal of creating prosperity through economic integration, and revitalise the spirit of win-win cooperation, he added.

Apart from deepening regional economic integration by working towards the FTAAP, PM Wong said, Apec has to continue making progress on inclusive and sustainable growth.

“This will demonstrate that trade and investment bring benefits to our people,” he said.

He also suggested that Apec members establish norms for cooperation in emerging areas, such as the digital and green economies, to seize new opportunities.

For instance, digital agreements help to improve connectivity across borders and allow businesses to access opportunities from technology.

And green agreements can unlock new jobs and industries in sustainability, while facilitating Apec members’ green transitions, PM Wong said.

“Apec is now more relevant than before,” he added.

On Nov 16, PM Wong will take part in the Apec Economic Leaders’ Meeting. He will be in Rio de Janeiro, Brazil, from Nov 17 to 20 for the Group of 20 summit.