RCEP Becomes A Real Solution For The World Economy Hit By High Inflation

Minister of Trade Muhammad Lutfi. (Photo: ANTARA)

JAKARTA - Trade Minister Muhammad Lutfi reminded all participants in a discussion panel sponsored by Channel News Asia (CNA) from Singapore that the Regional Comprehensive Economic Partnership (RCEP) could be a real solution for the world economy hit by high inflation today.

This condition is caused in particular by the barriers to world trade caused by protectionism and trade wars, as well as the non-functioning of the World Trade Organization (WTO) properly.

"When developed countries apply double standards, the WTO does not move," said Lutfi, quoted from Antara, Friday, May 27.

Lutfi said the current high world commodity prices are an opportunity for farmers in large developing countries such as Indonesia, India, Brazil and China to enjoy more benefits.

According to him, this is a new equilibrium in world food commodity trade.

"Don't spoil it by blaming one country, such as China, for an unfavorable trade position. It's dangerous for some developed countries to group together to justify double standards," said Lutfi.

What is meant by double standards by the Minister of Trade is that advanced countries blame and interfere with world free trade, when they do not benefit from their trade position with a certain country, for example China.

In fact, said Lutfi, in the past when their trading position was advantageous, so that farmers in the United States, Europe and Japan prospered, all developing countries were forced to open their markets.

"There must be togetherness and equality of opportunity in world free trade," said Trade Minister Lutfi.

Lutfi had a tense debate with other panelists, namely the CEO of Suntory Holdings, one of the world's largest food and beverage manufacturers from Japan, Tak Miinami.

The CEO expressed pessimism about the current world trade situation, especially because China is currently closing its markets due to the Zero-Covid policy implemented by Chinese President Xi Jin Ping. So China, according to him, needs to be limited in its role in world trade.

Lutfi regretted this view, especially considering that Japan had already felt like a developed country.

According to him, the world must recognize the fact that when China began to dominate world trade, its positive impact could be felt by the entire world community with increasingly affordable prices of goods.

"We in Indonesia really feel the benefits. Moreover, China is also the main source of technology transfer for developing countries today," said the Trade Minister.

In fact, continued Trade Minister Lutfi, China only joined the WTO in 2001. But the benefits are far more pronounced than the more than forty years since world trade was dominated by Western capitalism.

"Let the current high food prices be a signal for farmers and ranchers in developing countries including Indonesia to increase production, so that later prices will fall automatically due to abundant supply," said the Minister of Trade.