A report from the Financial Times indicates that the UAE, Singapore, and several other nations are preparing to establish a new coalition to enhance “trade openness” as countries worldwide aim to strengthen their trade connections during the presidency of Donald Trump.
The proposed coalition, set to be named the “Future Investment and Trade Partnership” or “FIT-P,” is expected to consist of approximately 10 nations, including New Zealand alongside the UAE and Singapore as key founding members.
Other potential members include Morocco, Rwanda, Malaysia, Uruguay, Costa Rica, Panama, Paraguay, and Norway, according to diplomats and officials from Asia, Latin America, and Australia involved in the planning. The final list of participants has yet to be confirmed, but the initiative will focus on “rules-based” international trade.
Building Trust
The group, which aims to implement trust-building measures in areas like digital trade, is scheduled to be launched in a virtual meeting in November, followed by an in-person event planned for July 2026, as stated by officials.
One participant in the discussions noted, “Initially, the goal is to maintain it as a loose coalition to promote trade openness and international trade rules, but it could evolve into something more significant over time. It’s a work in progress.”
Key areas of focus include encouraging members to provide equal treatment for both paper-based and digital trade documents, essential for improving efficiency in commerce. Some countries still do not recognize digital documents.
Bilaterals
The new initiative, which a second diplomat mentioned would be formally announced next month, arises at a time when the Trump administration is undermining global consensus on trade by sealing a series of rapid bilateral agreements aimed at reducing the US trade deficit.
Deals with the European Union, Japan, and other major trading partners have disrupted supply chains and raised questions about the feasibility of the “most-favored-nation” principle, which calls for equal treatment among all trading partners.
This pressure to uphold the rules-based global trade system has prompted the EU and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), comprising 12 members, to announce plans to deepen their relationships.
Cecilia Malmström, a former European trade commissioner now with the Peterson Institute for International Economics, has advocated for strengthened cooperation between the EU and the Trans-Pacific Partnership, asserting that the new plan could complement broader efforts to stabilize global trading systems.
Digital Documents
Officials involved in the coalition indicated that it particularly targets smaller nations, aiming to create a more flexible forum capable of developing common understandings in areas such as digital documentation, acceptance of electronic signatures, and e-commerce regulations.
One official referenced the Digital Economy Partnership Agreement (DEPA), established in 2020 by Chile, New Zealand, and Singapore to create a framework for the new digital economy, which South Korea joined last year, as a model for the initiative.
Not all eligible nations have confirmed their final decision to join, with some awaiting further details on the specific offerings of the coalition.
A representative from one contacted country remarked, “There are many other trade groups — we don’t want to join another group just for the sake of it; we seek more information on its advantages and mechanisms.”