23-05-2025
- Business
- New Straits Times
For developing countries, it is time to embrace fair trade
In an era marked by geopolitical uncertainty and the failure of free market systems to address development disparities, Global South countries are beginning to rethink their dependence on the Western-dominated international trade system.
While the free trade paradigm is promoted as a driver of shared prosperity, it has proven to be structurally biased, favouring developed economies while marginalising the interests of developing nations.
An alternative framework is now gaining momentum — a South-South trade model built on the principles of justice, reciprocity, economic sovereignty and solidarity. Within this framework, the emphasis shifts from free trade to fair trade — a system rooted in equitable benefits, transparency and the right to self-determined development.
Prime Minister Datuk Seri Anwar Ibrahim is one of Asia's most vocal advocates for this new direction.
In various international platforms, including the Global South Dialogues, the World Islamic Economic Forum and Asean summits, he repeatedly emphasised the urgent need to establish a just and balanced trade order.
Trade is not merely about economic exchange; it is a reflection of global justice and shared human dignity.
As Asean chairman, Anwar is actively positioning both Malaysia and the regional bloc as influential actors within the Global South, advocating for a rebalancing of global power — moving away from bipolar dominance towards a more equitable, multipolar world order.
Across his diplomatic engagements — from South America and Southeast Asia to his latest visit to Russia — the prime minister has consistently called for stronger South-South cooperation, aiming to strengthen collective economic and political leverage, to be free from the dominance of developed nations or the Global North.
In his 2024 keynote speech at the Qatar Economic Forum, he stated: "The current global system tilts towards the major powers, multinational corporations, and Western financial institutions. It denies developing countries the right to develop their own capacities."
In his view, free trade agreements often pressure developing nations to liberalise markets prematurely while receiving limited access to developed markets in return.
He advocates for greater South-South cooperation as a strategic alternative to Western hegemony.
Developing nations must actively build trade systems based on mutual respect and shared goals — systems that reflect their values and development needs rather than Western prescriptions.
Under his leadership, Malaysia has intensified economic engagement with fellow Global South nations, including Indonesia, Turkiye, Egypt, Bangladesh and many African countries.
These partnerships are not limited to commodities but also include technology transfers, local currency settlements and infrastructure development.
This approach strengthens collective autonomy, allowing Southern countries to chart a trade path independent of traditional power centres such as the International Monetary Fund, World Trade Organisation, or Bretton Woods institutions.
Fair trade should be a guiding principle for the future of international trade.
Unlike free trade, which centres on deregulation and profit maximisation, fair trade emphasises just wages, sustainable practices, stable pricing and the empowerment of small producers.
These ideas reflect a broader vision of economic justice where trade supports human development and communal well-being, not just corporate gain.
Malaysia, with its strong halal economy, Islamic finance leadership and multicultural trade history, is well-positioned to lead this transformation as a coordinator of fair, inclusive and justice-driven trade practices.
Today's global trade landscape is at a crossroads. The liberalised free trade model dominated by Western powers is increasingly being challenged, while the voices of the Global South grow louder in calling for a more ethical and multipolar system.
Anwar's vision is a call to reimagine trade as a tool for global justice. Under this vision, fair trade becomes the lifeblood of a new economic order — one that places people before profit and dignity above deregulation.
Towards this new order, the Global South must not only cooperate but innovate — forging trade alliances, financing structures, and institutions that reflect their shared destiny.
