FIT-P: Singapore, the UAE, and others form a new trade alliance amid global uncertainty - Trade Treasury Payments

A major shift is taking place in global trade as smaller nations form a new alliance to protect their interests. Singapore, the UAE, and New Zealand are planning to launch a new trade grouping called the Future of Investment and Trade Partnership (FIT-P). 

This comes at a time when international trade is facing growing challenges from rising protectionism as the Trump administration continues to undermine global trade agreements through a series of quick bilateral napkin deals aimed at reducing US trade deficits. These deals with the EU, Japan, and other major US trade partners have disrupted supply chains and threatened the long-standing principle of treating all trade partners equally.

FIT-P membership and strategic objectives

Singapore, the UAE, and New Zealand will lead the group as founding members, with about 10 countries expected to join. Morocco, Rwanda, Malaysia, Uruguay, Costa Rica, Panama, Paraguay, and Norway are being considered as potential members.

An official involved in the planning stated, “The idea, at the start, is to keep it as a loose coalition to bolster trade openness and international trade rules, but it may evolve into something bigger over time. It is a work in progress”.

The group will hold its first virtual meeting in November, followed by an in-person event in July 2026. They will focus first on building confidence in digital trade and pushing for equal treatment of paper and digital trade documents, an important step toward more efficient global trade, especially since some countries still don’t accept digital documents.

A focus on smaller nations

FIT-P focuses on smaller countries. By creating a more flexible forum, these nations hope to develop shared approaches to digital documents, e-signatures, and rules for electronic trade.

An example is the Digital Economy Partnership Agreement (DEPA), created in 2020 by Chile, New Zealand, and Singapore, as a model. That agreement set up rules for the digital economy and grew when South Korea joined last year.

However, not all invited countries have agreed to join yet. There are concerns about joining another trade group without a clear justification. Many nations are requesting additional details on potential benefits and operational mechanisms before committing. This hesitation reflects a growing sense of forum fatigue among trade officials as they need to weigh the benefits of new initiatives against the diplomatic resources required to participate effectively.

Part of a broader response

The FIT-P initiative is taking place alongside other efforts to preserve global trade rules. The EU and the 12-member Indo-Pacific CPTPP trade bloc have already announced plans to strengthen their cooperation.

Cecilia Malmström, former EU trade commissioner now at the Peterson Institute for International Economics, sees potential for these efforts to work together. “It shows that many countries want to trade within clear rules and transparency. This group could co-operate with EU-CPTPP and together push for plurilateral global rules,” she said.

As major powers rethink global trade structures, smaller nations are taking action during this uncertain time for global trade.

Note: The news was first reported by the Financial Times.