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International trade

Marcos and Xi Unite on Global Trade Restoration Amid Maritime Tensions

Strategic Insights

— 2 min read

Philippine President Ferdinand Marcos Jr. and Chinese President Xi Jinping have come together to call for the restoration of global trade mechanisms, despite ongoing maritime disputes between their countries. At the 32nd Asia-Pacific Economic Cooperation (Apec) summit, Marcos urged the full restoration of the World Trade Organization's (WTO) dispute settlement powers to stabilize global trade, which he believes is being threatened by intensifying geopolitical tensions, technological disruptions, and protectionism. Xi, too, emphasized the importance of safeguarding the multilateral trading system to ensure inclusive economic globalization. The absence of the WTO's dispute settlement mechanism is particularly detrimental to small economies, Marcos argued, highlighting the need for a functioning dispute settlement body to maintain economic stability.

Key Takeaways:

  • Marcos and Xi united in calling for the restoration of global trade mechanisms at the 32nd Apec summit, citing the need to address global trade uncertainty due to geopolitical tensions, technological disruptions, and protectionism.
  • Marcos highlighted the importance of the WTO's dispute settlement powers for small economies, emphasizing that rules are a "potent equalizer" for these countries.
  • The absence of a functioning WTO dispute settlement mechanism is detrimental to small economies, according to Marcos, and can lead to economic instability.
  • The US has been blocking appointments to the WTO's appellate body, crippling its ability to function since the US imposed a 10-percent tariff on imports in April.
  • The Philippines, along with other US trade partners, negotiated with the US to lower the tariff rates, resulting in a reduction from 20% to 19% in July.
  • China retaliated against the US by imposing tariffs on US goods, sparking a trade war between Washington and Beijing.
  • Trump and Xi agreed to roll back some of the trade restrictions during a meeting last Thursday, marking a possible de-escalation of the trade war.

Statistics:

  • The US imposed a 10-percent tariff on most imports in April, sparking trade tensions with its partners.
  • The Philippines initially faced a 20% duty under the new tariff regime but managed to negotiate a reduction to 19% in July.
  • China imposed tariffs on US goods in response to US trade actions, contributing to the ongoing trade war between Washington and Beijing.
  • The WTO's appellate body has been crippled since the US blocked appointments to new judges, preventing it from having a quorum.
  • The Apec summit took place from [no specific date mentioned] at the Hwabaek International Convention Center in Gyeongju, South Korea.

Sources:

  • "Marcos urges Marcos-Xi Meet: 'Unblock' WTO dispute settlement powers," BusinessMirror (August), cited in the article but with no specific date mentioned.
  • "Trump and Xi Agree to Roll Back Some Trade Restrictions," article cited in the text but without specific details.

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