Apec ‘concerned’ about challenges to global trade
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South Korea’s Minister for Trade, Mr Cheong In-Kyo, said the joint statement was hard-won, with clear “significant differences” in positions early on in the talks.
PHOTO: REUTERS
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JEJU – The Asia-Pacific Economic Cooperation (Apec) said on May 16 that it was concerned about the challenges to global trade, as ministers from the group’s members met in South Korea under the shadow of growing woes from US tariffs.
Trade ministers from the top economies that make up Apec are meeting on South Korea’s Jeju Island amid concerns for the global trading system since US President Donald Trump unveiled bombshell levies on most partners
The US is a key Apec member and was represented by Trade Representative Jamieson Greer, who held a series of bilateral meetings with nations eager to soften the blow of Washington’s tariffs.
“We are concerned with the fundamental challenges faced by the global trading system,” trade ministers from the 21-member group said in a joint statement.
They urged greater cooperation, saying they remain committed to Apec as a means of “bringing us together to address the economic challenges facing our region”.
South Korea’s Minister for Trade, Mr Cheong In-Kyo, said the joint statement was hard-won, with clear “significant differences” in positions early on in the talks.
But at the last minute, the countries “dramatically” reached an agreement, he said, with Apec emphasising the importance of global trading mechanisms such as the World Trade Organisation (WTO), as well as sustainable supply chains.
This “sends a highly positive signal to global markets”, he said, adding that “Apec members can work together to navigate the current highly uncertain global trade environment effectively”.
At the meeting, Singapore’s Minister-in-charge of Trade Relations Grace Fu reiterated the country’s commitment to the rules-based multilateral trading system with the WTO at its core.
She also spoke on Singapore’s initiatives in implementing artificial intelligence and other innovation efforts for trade facilitation, as well as green solutions that contribute to sustainable growth, said Singapore’s Ministry of Trade and Industry in a statement on May 16.
Ms Fu emphasised the key role Apec plays in driving collaboration and innovation to turn shared challenges into new trade and development opportunities, amid a challenging global environment.
Singapore’s Minister-in-charge of Trade Relations Grace Fu (front row, sixth from left) at the meeting on South Korea’s Jeju Island.
PHOTO: MTI
No joint response to US
Mr Cheong said there had been no discussion of joint responses to US tariffs, saying it was not possible as “each country faces significantly different circumstances”.
South Korea recorded a US$66 billion (S$85.5 billion) trade surplus with the US in 2024 – behind only Vietnam, Taiwan and Japan – making it a key target of Mr Trump’s trade tirade.
Highly dependent on exports, the country has been hit hard by the 25 per cent tariffs on automobiles
Mr Greer also met South Korea’s Trade, Industry and Energy Minister Ahn Duk-geun later in the day.
Mr Ahn said in a press conference that the two sides agreed to hold a second round of technical consultations. The South Korean delegation will fly to Washington next week to discuss issues such as trade and economic security.
Mr Ahn said he emphasised to Mr Greer that South Korea has a free trade agreement with the US.
“I made it clear that, against this backdrop of strong industrial cooperation, the current tariff issue has become a significant concern.”
Mr Trump announced additional “reciprocal” tariffs of up to 25 per cent on South Korean exports in April, but later suspended them until early July
“Our objective is to finalise an agreement before that date, and we are making every effort to meet this timeline,” said Mr Ahn.
“I believe other countries are in a similar situation, and the United States has no reason to delay either.”
Seoul aims to leverage the talks with commitments to purchase more US liquefied natural gas and offer support in shipbuilding, a sector in which South Korea is a leader, after China.
Earlier on May 16, Mr Greer met Mr Chung Ki-sun, the vice-chairman of HD Hyundai, which owns South Korea’s largest shipbuilding company.
HD Hyundai said in a statement that discussions covered cooperation with US shipmaker Huntington Ingalls Industries.
Mr Greer is also set to meet the chief executive of South Korean shipbuilder Hanwha Ocean, which provides maintenance, repair and overhaul services for US Navy vessels.
Shares of Hanwha Ocean rose nearly 3 per cent on the morning of May 16, while HD Hyundai Heavy Industries gained as much as 3.6 per cent. AFP
