Globalisation an ‘irreversible historical trend’: Xi Jinping

Globalisation an ‘irreversible historical trend’: Xi Jinping

Context:

• Chinese president Xi Jinping laid out his country’s credentials as the new champion of world trade calling globalisation an “irreversible historical trend”, in comments that offered a contrast to the “America First” doctrine espoused by Donald Trump moments earlier.

Introduction:

• Mr Xi was speaking at the APEC summit in Vietnam
• President Xi Jinping conceded that the philosophy behind free trade needed to be repurposed to be “more open, more balanced, more equitable and more beneficial to all” but defended multinational trade deals, which he said helped poorer nations benefit from global commerce.
• “We should support the multilateral trading regime and practice open regionalism to allow developing members to benefit more from international trade and investment,” he said.

America’s stand:

• The U.S. president Donald Trump used his speech at the APEC business meet to promote his vision for a free and open Indo-Pacific region. “
• The use of the term Indo-Pacific by President Trump has led to speculation that it may have something to do with Washington preparing the ground for a revival of the so-called Quadrilateral strategic alliance between the US, Japan, Australia and India to counter China’s rise.
• In his address, Mr. Trump also praised countries like Indonesia, Thailand, the Philippines, Malaysia and Japan, which also briefly touched on the bloody history of the Vietnam war, in which Da Nang was a key battlefield.
• China has already reacted cautiously over a proposal by the Trump administration for a working-level quadrilateral meeting with India, Japan and Australia, saying Beijing hopes that it would not target or damage a “third party’s interest”.

About APEC:

• Asia-Pacific Economic Cooperation (APEC) is a forum for 21 Pacific Rim member economies that promotes free trade throughout the Asia-Pacific region.
• The Asia-Pacific Economic Cooperation (APEC) was established in 1989.
• It has became the pre-eminent economic forum in the Asia-Pacific economic region.
• Its primary purpose is to facilitate economic growth and prosperity in the region.
• APEC operates on the basis of non-binding commitments and dialogue.

Aims:

• APEC aims to strengthen regional economic integration by removing impediments to trade and investment “at the border”.
• Enhancing supply chain connectivity “across the border”
• Improving business environment “behind the border”
• It also help member countries built the institutional capacity for  trade and investment reforms

Why India want to join?

• APEC would provide India with an opportunity to socialize with the developed economies of Asia-Pacific region.
• With India’ entry in APEC, its chances to get into TPP and FTAAP brightens
• APEC is a missing link between India’s Act East Policy.
• APEC membership would embed India in the premier organization promoting free trade and economic cooperation in Asia.

Barriers for India

• Large trade deficit is not allowing India to be more liberal in trade policies.
• APEC member economies also have concerns over India’s trade policy and record in international trade negotiations.
• India’s role in endangering the WTO trade facilitation agreement has created a negative and constructive image in the eye of other countries.
• APEC membership would allow India to engage member countries on evolving trade and investment rules and norms.