Prevent Protectionism, Push for Multilateral Cooperation

AP PHOTO/VINCENT THIAN

Monitors showing U.S President Donald Trump, right bottom, hold up declaration together with other leaders attending the first virtual Asia-Pacific Economic Cooperation (APEC) leaders\' summit, hosted by Malaysia, in Kuala Lumpur, Malaysia, Friday, Nov. 20, 2020. Leaders from the Asia-Pacific Economic Cooperation forum have begun a virtual meeting to seek ways to revive their coronavirus-battered economies, with U.S. President Donald Trump participating for the first time since 2017.

KUALA LUMPUR, FRIDAY  — Asia-Pacific leaders have called for more open trade and stressed the importance of multilateral cooperation. Apart from strengthening that stance as a way to support post-COVID-19 economic recovery, they also criticized trade protectionism.

This theme came up at the Asia-Pacific Economic Cooperation (APEC) Summit held online in Kuala Lumpur, Malaysia, on Friday (20/11/2020). With regard to the theme, the meeting of United States President Donald Trump and Chinese President Xi Jinping at the event attracted particular attention.

Xi, in a speech on Thursday, promised to open the Chinese market widely. According to him, openness enables a country to move forward w

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Trump\'s speech on Friday was not open to the media. Oh Ei Sun, an analyst with the Singapore Institute of International Affairs, said Trump wanted to reiterate his administration\'s trademark emphasis on protectionism and, in its process, seek to prevent China from becoming the leader of global free trade.

Maintaining open markets is believed to be important to help the global economy recover.

Japanese Prime Minister (PM) Yoshihide Suga and New Zealand PM Jacinda Ardern warned world leaders against the temptation to retreat to trade protectionism rather than multilateralism. Protectionism is seen as a major setback in the midst of efforts to restore the world economy after the Covid-19 pandemic. Maintaining open markets is believed to be important to help the global economy recover.

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At the meeting with CEOs from Asia-Pacific, Suga said a free and open Indo-Pacific would become the foundation of prosperity in the region. "Amid the risk of the temptation to prioritize an inward view [protectionism] in the face of a global economic downturn, making rules for a free and fair global economy is very important," said Suga.

The APEC meeting this time took place a week after Japan, China and 13 other Asia-Pacific countries, including ASEAN members, had signed the world\'s largest free trade agreement covering a third of the world\'s population, namely the Regional Comprehensive Economic Partnership (RCEP).

FAMER ROHENI / MALAYSIA DEPARTMENT OF INFORMATION / AFP

This handout photo from Malaysia\'s Department of Information taken and released from the official command centre on November 19, 2020 shows Indonesian President Joko Widodo delivering a speech via virtual meeting during the APEC CEO Dialogues 2020, ahead of the Asia-Pacific Economic Cooperation (APEC) leaders\' summit in Kuala Lumpur.

After China\'s strong influence in the RCEP, Suga is now pushing for the expansion of another trade pact, namely the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP), potentially opening the way for China and Britain to join.

"Japan will aspire to [the creation of] the Asia-Pacific Free Trade Area through the initial RCEP agreement and the implementation and expansion of a stable CPTPP with the chairmanship of Japan next year," said Suga.

However, during the Trump administration, the US withdrew, and the partnership initiative was held by Japan and at the same time changed its name to CPTPP.

The CPTPP Forum connects 11 countries in the Asia-Pacific region, including Canada, Australia and Japan, previously known as the Trans-Pacific Partnership (TPP). The US joined the TPP during President Barack Obama\'s era. However, during the Trump administration, the US withdrew, and the partnership initiative was held by Japan and at the same time changed its name to CPTPP.

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The US president-elect, Joe Biden, is believed to be willing to consider the need to re-engage with Asia, including in trade forums such as the CPTPP.

Don\'t repeat mistakes

Jacinda Ardern echoed the same hope. New Zealand, which will lead the Asia-Pacific Economic Cooperation (APEC) in 2021, hopes that openness will become the basis for this economic cooperation, especially to accelerate global economic recovery.

"Amid the efforts of dealing with the biggest economic challenges of this generation, we must not repeat our historical mistakes by retreating to protectionism. APEC must continue to be committed to keeping markets open and trade running," she said. Ardern urged APEC countries to always work together to "revive growth and plan for long-term economic recovery" that is sustainable, inclusive and digitally possible.

Suga and Ardern\'s calls are in line with the latest report by the International Monetary Fund (IMF), which states that the global economy is trying to rise from the adversity caused by Covid-19. However, in a report aimed at the G-20 countries, the IMF emphasized that the economic recovery will not be even across the globe.

FANDY AZLAN/MALAYSIA DEPARTMENT OF INFORMATION VIA AP

In this photo released by Malaysia Department of Information, a screen shows New Zealand\'s Prime Minister Jacinda Ardern, left, and Microsoft President Brad Smith speak via virtual meeting during the APEC CEO Dialogues 2020, ahead of the Asia-Pacific Economic Cooperation (APEC) leaders\' summit in Kuala Lumpur, Malaysia, Friday, Nov. 20, 2020.

IMF managing director Kristalina Georgieva stated that efforts to restore the economy will be difficult and prone to setbacks. Georgieva urged developed economies to act quickly and together to provide support and ensure the global availability of the Covid-19 vaccine. (AP/REUTERS/MHD/BEN)