Asia-Pacific Countries Emphasize Free and Open Trade Amid Trump's Tariffs

Strategic Insights -

Asia-Pacific Economic Cooperation (Apec) member countries are strongly advocating for free and open trade, despite US President Donald Trump's tariffs and apparent departure from multilateralism. A senior official at the Apec secretariat, Carlos Kuriyama, expressed confidence that the annual summit would reach a joint declaration, citing the hard work of all member countries, including the US. Kuriyama highlighted several initiatives, including a trade pact between China and the Association of Southeast Asian Nations (Asean) bloc, which has upgraded earlier this week. The US Treasury Secretary, Scott Bessent, represented the US at the Apec summit, but Trump's policies have often countered free trade and multilateralism.

Key Takeaways:

  • Most Apec member countries are heading towards free and open trade, as stated by Carlos Kuriyama, Director of the Policy Support Unit at the Apec secretariat.
  • The trade pact between China and the Asean bloc is cited as an example of efforts towards reducing trade barriers and policy uncertainty.
  • Apec's 21 member economies, which account for 61% of world GDP, are expected to record economic growth of 3.1% this year and 2.9% next year.
  • The US is engaging with all members "very actively" to find a way to adopt a joint statement and launch initiatives.
  • Trump's trade deals, including agreements with South Korea and China, have contributed to reducing trade barriers and policy uncertainty for Apec.
  • The current global trade order is characterized by weakening multilateralism, making it challenging to achieve consensus among member countries.
  • Apec remains an important arena for countries to discuss and find solutions to global trade issues.

Statistics:

  • 61%: The percentage of world GDP accounted for by Apec's 21 member economies.[1]
  • 3.1%: Economic growth expected for the current year among Apec member countries.[1]
  • 2.9%: Economic growth expected for next year among Apec member countries.[1]
  • 21: The number of economies represented at the Apec summit.[2]

Sources:

[1] Reuters, citing Carlos Kuriyama, Director of the Policy Support Unit at the Apec secretariat.

[2] Apec summit attendance list, cited by Kuriyama.