Asia Pacific trade envoys to discuss multilateral cooperation in tariff era

Trade representatives from the Asia-Pacific region will convene in South Korea this week to engage in discussions on multilateral collaboration, occurring during a period when nations are racing to address U.S. President Donald Trump’s extensive tariffs.

Trade delegates from 21 member economies of the Asia-Pacific Economic Cooperation group will participate in two days of discussions beginning Thursday in Jeju, a resort island in South Korea, as part of the second round of senior officials’ meetings leading up to an annual APEC leaders’ summit later this year.

The APEC trade representatives meeting occurs in the context of rising protectionism prompted by Trump’s tariffs, which have affected over half of the group. APEC represents nearly 50% of worldwide trade and 60% of global GDP.

Participants will engage in private sessions covering wide-ranging subjects from multilateral trade to restoration and sustainability, with the official agenda anticipated to address the functions and reform priorities of the World Trade Organization in light of present global challenges.

The officials are also anticipated to address additional subjects like enhancing the Asia-Pacific free trade zone, promoting digital commerce, increasing preparedness for artificial intelligence, and fostering sustainable, inclusive development. The Trump administration perceives the WTO as an organization that has allowed China to obtain an unjust export benefit and has recently taken steps to suspend U.S. contributions to it.

Last month, the WTO significantly reduced its prediction for global merchandise trade from strong growth to a downturn, indicating that U.S. tariffs and their spillover effects might result in the worst trade slump since the peak of the COVID pandemic.  Trump has introduced high tariffs against rival China, neighbours Canada and Mexico, Asian allies Japan and South Korea, and several Southeast Asian countries including Vietnam, Thailand, Indonesia and Malaysia, among other trading partners.