Jeju: Trade ministers from the Asia-Pacific Economic Cooperation (APEC) have reiterated the importance of the World Trade Organization (WTO) in addressing global trade issues, amidst rising uncertainties due to increasing protectionist policies.
According to Yonhap News Agency, this consensus was reached in a joint statement adopted unanimously by the trade chiefs after a two-day multilateral meeting held on South Korea's southern island of Jeju. The statement underscored the significance of the WTO in advancing trade issues and acknowledged its rules as integral to the global trading system. It also expressed concern over the fundamental challenges faced by the global trading system, particularly in light of U.S. tariffs.
WTO reform was a crucial agenda item at the meeting, especially considering the organization's role in facilitating free trade amid rising protectionism, prominently seen in U.S. trade policies under President Donald Trump. WTO Director-General Ngozi Okonjo-Iweala, who attended the meeting, forecasted a reverse in global trade market growth this year and emphasized the organization's commitment to reestablishing itself as a vital institution for fostering a stable trading environment, according to South Korean Trade Minister Cheong In-kyo.
The joint statement, as noted by Cheong, also included South Korea's proposal for an artificial intelligence (AI) for trade initiative. This initiative aims to promote the use of AI technology and the voluntary exchange of information related to trade-related AI standards and technologies. Cheong explained that AI technology could enhance customs procedures to boost the efficiency of trading firms and aid businesses in identifying opportunities and risks.
South Korea plans to host a dialogue on the AI for trade initiative between the public and private sectors in Incheon in August, intending to lead further discussions on the initiative, according to Seoul's trade ministry.
The APEC trade ministers also agreed to continue discussions on global supply chain issues, addressing "cross-sectoral challenges" and strengthening cooperation on the matter. Cheong highlighted that there were significant challenges in producing the joint statement due to sharp differences in views on the global trade environment among APEC member countries. While he did not specify the countries, there had been speculation that tensions between the U.S. and China could impede the statement's issuance, especially concerning terms like "trade protectionism."
"Issues where the parties had significant differences from the beginning remained points of contention throughout. At the core, the disagreement was rooted in differing perspectives on the current global trade system," Cheong explained.