Free trade pacts must to revive global economy

There is no gainsaying the fact that globalization has produced many economic benefits and free trade has spurred global prosperity. However, of late, protectionism is taking over economic liberalization and has triggered a rising concern in emerging economies.
Leaders attending the Asia-Pacific Economic Cooperation (APEC) meeting in Lima expressed wariness about the peril that protectionism poses to global economy. They reaffirmed that they would keep their markets open and
promote globalization in all its forms.
The sagging world’s economy needs free trade deals like never before. Trade-distorting measures will not serve anybody good. The path of protectionism will hit the sluggish markets hard and wreak havoc on global trade. We can see its impact on Britain’s post-Brexit trade scenario. It should teach the world a lesson in globalization and economic openness.
As anti-free trade and anti-globalization sentiments take roots in some countries, the International Monetary Fund (IMF) has sounded a grim warning of “slow growth trap” in the next few years. As long as the tide of isolationism grows, the threat from building walls will continue to hover over economies.
While the EU-Canada Comprehensive Economic and Trade Agreement (CETA) brought into focus the overriding irritants in free trade deals, it also offered hope and showed the way forward for bilateral business accords. CETA was able to pass the hurdles as both the parties were willing to be flexible and transparent. CETA proved a point that free trade deals are not bad in itself and if followed in full faith by both sides, these can be saviours for the slowing world economy. It is important that compatible pacts are encourgaed to prevent economic stagnation that many nations are reeling from.
At the APEC summit, China’s foreign ministry said in a statement that China and Russia will push for a free-trade area in the Asia-Pacific region. This free-trade zone will succeed only when there is cooperation and coordination
between the various countries who join it. The deals that are sealed should give importance to inclusive growth and not aim at short-term advantages. The agreements should be based on ethics and mutual trust. They ought to be liberal, but at the same time follow business standards and regulations that do not ignore the environment and health of the people.
Such free-trade areas must be established in different parts of the world
because these will help to integrate trade. Trade integration is vital to prevent the recessionary trend that the global economy is grappling with today. Emerging economies should be given a push through liberalized trade policies by the developed world. It is imperative to integrate since the fruits of economic development in the current global system won’t be restricted to a specific place. If one country makes economic advancement, it will in turn help others as well.
Trade openness is the need of the hour. However, fairness and harmonizing of standards would hold the key to success of any trade agreement. Bilateral business pacts that reduce tariff and non-tariff barriers will ensure that the world moves towards an economic revival and shakes off market volatility
and vulnerability.