From Jiang Tao
As the results of the U.S. presidential election become clear, global markets are quickly entering a period of reflection, considering the potential implications for the next four years. In this context, the APEC (Asia-Pacific Economic Cooperation) Summit held in Lima, Peru, emerges as one of the most significant international events. Peru’s Foreign Minister, Elmer Schialer Salcedo, announced that all APEC member economies will send representatives to the summit, emphasizing the ongoing importance of economic cooperation amid the rise of populism and protectionism.
Since its founding in 1989, APEC has played a pivotal role in promoting regional economic integration and advancing trade liberalization. Originally established by 12 countries, the organization has grown to include 21 economies, positioning it as a crucial platform for linking the economies of the Pacific Rim.
According to APEC’s official website, the region’s average tariff rate has dropped from 17% in 1989 to just 5.3% in 2021, while total merchandise trade among member economies has increased more than nine-fold. By October 2022, the number of trade facilitation measures implemented within APEC exceeded restrictive trade measures by reaching 601.
Today, APEC accounts for approximately 40% of the world’s population, 60% of global GDP, and nearly 50% of global trade. Each APEC Leaders’ Meeting serves not only as a venue for heads of state to exchange views and negotiate cooperation but also as a barometer for global economic trends.
However, APEC’s journey has not been without challenges. In recent years, some member economies have adopted protectionist policies, including “decoupling,” “de-risking,” and the promotion of “nearshoring” and “friendshoring.” These actions reflect the so-called “new Washington Consensus,” which calls for greater intervention in economic affairs, with an emphasis on reshaping global trade partnerships in ways that challenge the existing international order. These shifts threaten to undermine the political and economic framework APEC has diligently worked to build.
The focus of APEC has expanded beyond trade liberalization. Today, the urgent challenge is ensuring economic sustainability in an increasingly volatile global environment. The aftermath of the COVID-19 pandemic has left many economies struggling to recover, and disruptions to international supply chains have only worsened the crisis. At the summit, discussions on cooperation in areas such as the digital economy, clean energy, and inclusive development are essential for addressing these pressing issues.
On November 9, Chinese President Xi Jinping introduced the idea of an “Asia-Pacific dream” in his address to the APEC CEO Summit. In his speech, Xi highlighted themes of Asia-Pacific integration and connectivity, aligning with the central goals of the summit. Last month, Raúl Pérez Reyes Espejo, Peru’s Minister of Transportation and Communications, announced that the $1.3 billion Chancay Port infrastructure project will soon be operational, positioning it as a new regional trade hub. Part of China’s Belt and Road Initiative, this project will not only boost Peru’s economy, contributing $4.5 billion annually (1.8% of GDP), but will also enhance connectivity between Latin America and Asia.
The issue of connectivity has gained increasing attention in recent years, as leaders recognize that the world is more interconnected than it may appear. Connectivity is a key factor in unlocking development potential and achieving synchronized economic growth. For the Asia-Pacific region, the world’s most dynamic economic bloc, enhancing connectivity is critical for overcoming the global economic slowdown. China’s Belt and Road Initiative (BRI) plays a central role in this effort, seeking to build infrastructure and strengthen ties between regional economies. APEC and the BRI share significant overlap in their membership and objectives, enabling them to mutually reinforce one another and foster stronger collaboration.
We must acknowledge that APEC’s resilience stems from its inclusive and dynamic approach to cooperation. Informal Leaders’ Meetings, for example, often lead to more tangible outcomes than formal gatherings. Whether considered from a long-term or short-term perspective, APEC will continue to serve as a bridge between the East and West, fostering collaboration and mutual growth. In today’s volatile global landscape, it is only by adhering to the principles of cooperation and win-win outcomes that we can hope to achieve the shared goal of global prosperity and sustainable development.
–The Author is also a Reporter for CGTN Radio
