Last week, the Financial Times revealed that Singapore, the UAE, and other countries are gearing up to introduce the Future of Investment and Trade Partnership (FIT-P). This development marks more than a new acronym in the global trade lexicon; it highlights a significant shift in the global economy. Agile, smaller nations are taking the lead in preserving rules-based trade as larger powers increasingly focus inward.
FIT-P, which aims to include around ten countries like New Zealand, Uruguay, Norway, and Rwanda, seeks to enhance “trade openness” through practical strategies, such as acknowledging digital trade documents and developing new confidence-building measures. While they may seem technical, these initiatives are crucial for creating supply chains that are faster, fairer, and more resilient for the future.
A Unique Opportunity for the UAE
For the UAE, this initiative extends beyond diplomacy. It aligns with our role as a global trade hub that bridges East and West. From Jebel Ali Port to our modern air corridors, Dubai has thrived on openness and connectivity. Recently, the UAE has accelerated bilateral agreements through its Comprehensive Economic Partnership Agreements (CEPAs) with partners throughout Asia, Africa, and Latin America.
Our research at DMCC, highlighted in the Future of Trade 2024 report, indicates that regionalisation and emerging blocs are reshaping global commerce. Three main forces are driving this change:
1. Accelerated regionalisation – new alliances form in response to geopolitical shifts.
2. Supply chain restructuring – prioritizing resilience over cost-efficiency.
3. Digital transformation and AI – redefining trade dynamics.
FIT-P is perfectly aligned with these trends. By beginning with a coalition of like-minded smaller economies, the group can establish standards for digital trade and sustainability without the deadlock seen in larger multilateral forums.
The Importance of Digital Trade
A main focus of FIT-P is digital trade, an area where the UAE is heavily invested. Currently, some countries still reject digital trade documents, hampering commerce and adding unnecessary costs. Achieving equal recognition of digital and paper records might seem minor, but our analysis shows it could unlock significant efficiencies in global trade.
The UAE is already a leader in digital trade and fintech innovation. Collaborating with FIT-P partners allows us to enhance these efforts and help establish global norms benefiting businesses of all sizes.
A Rules-Based Solution
The context for FIT-P is evident: rising protectionism from major economies. Bilateral “napkin deals” and tariff threats have eroded confidence in the World Trade Organization, raising questions about equal treatment principles. Smaller economies cannot remain passive as supply chains disintegrate.
As Cecilia Malmström, former EU trade commissioner, noted, initiatives like FIT-P illustrate that many nations still value trading within clear rules and transparency. This coalition can work alongside entities like the EU and CPTPP to advocate for plurilateral global rules.
Implications for Business
For businesses in the UAE and beyond, this isn’t just theoretical policy. It translates into faster, cheaper, and more secure trade transactions. It brings clearer rules for digital services, which are increasingly important in cross-border exchanges. It also offers greater stability in a volatile world.
At DMCC, we witness these trends daily within our community of over 25,000 companies. Our research emphasizes that agility will be key to success in the next decade. Nations and businesses that embrace innovation, sustainability, and open trade will thrive.
The launch of FIT-P serves as a reminder that small nations can significantly influence the future of global commerce. The UAE is proud to be a part of this effort.
