Can Essential Trade Survive Distruptions?

When global shocks hit, can essential trade still flow?

Singapore and New Zealand have signed the Agreement on Trade in Essential Supplies (ATES) to keep essential goods moving during global disruptions. The agreement focuses on preventing export restrictions on listed supplies, maintaining logistics flows, and ensuring timely information sharing during crisis periods.

Our Deputy Director of Research, Aidonna Jan Ayub, highlights that while the agreement is legally binding, countries still retain flexibility to impose measures if necessary. However, these actions are expected to be reviewed and withdrawn as soon as practicable. With no formal dispute settlement mechanism, enforcement relies mainly on diplomatic channels, reflecting a broader effort to preserve stability in an increasingly uncertain global trade environment.