Opinion: APEC to lead the way in fight against protectionism

CGTN
OPINIONS Wang Peng


Editor's note: Wang Peng is an Associate Researcher at the Chongyang Institute of Renmin University of China and the Charhar Institute. His areas of research include CPC building, Chinese foreign policy and Asia-Pacific international security. The article reflects the author’s opinion, and not necessarily the views of CGTN.

Papua New Guinea Foreign Affairs and Trade Minister Rimbink Pato opened the APEC Ministers Responsible for Trade Meeting on May 25. This meeting aims to urge greater leadership in APEC to tackle uncertainty and enable more inclusive growth throughout the Asia-Pacific region.

APEC stands at a crossroads

Thanks to the past decade of cooperation and development, APEC has now become the most energetic and attractive economic cooperative organidation in the world. However, along with this great and sustained development, new problems and obstacles have emerged.

Taking stock of challenges across the changing landscape of global trade, the trade ministers from the APEC member economies attended the meeting in order to keep trade moving and open opportunities for people in all countries of the region.

Asia-Pacific Economic Cooperation (APEC) leaders pose for a group  photo in Shanghai, China on Oct 20, 2001./VCG Photo

In addition, the APEC region are also convened in the midst of rising sentiments in some quarters against the multilateral trading system, rapid global warning caused by deteriorating climate change, as well as the rapid development of information and communication technology that has created a whole new dimension of international trade.

New techniques, new engines of growth, and new mechanisms of trade system, are all double-edged swords. They may offer new opportunities to restart a fairer globalidation, or increase the already severe inequality among nations in the world, and hence put sand in the wheels of international trade. A major one among those problems is the rising of protectionism.

As the chair of the APEC business advisory council suggested, now the APEC stands at a crossroads. One road takes us to open markets, dynamic flows of goods, services and investment. The other takes us back to protectionism. How should APEC use its strength to stop holding back progress?

Creating new pillars for APEC: China and the B&R Initiative

Looking back on history after World War II, America and a number of international regimes, organisations, norms and institutions that were created and led by American hegemony have shaped globalisation for more than 70 years.

But now, the leader, America under the administration of Donald Trump, has begun to abandon the principles, values, and institutions that it once upheld. Trump and his supporters view international trade as a zero-sum game, and instead are seeking a so called "reciprocal mode" and "favorable balance of trade". In doing so, they do not hesitate to wage a trade war against America’s economic partners, or even its allies, such as Japan, South Korea, the EU, and so forth. APEC as a multilateral framework promoting international trade is not favored by the Trump administration, which prefers the bilateral approach.

Darcy Lai, Managing Director and Regional Head of Global Banking, Corporate and Institutional Banking at Greater China & North Asia of Standard Chartered Bank, attends the Belt and Road Summit in Hong Kong, China on Sep 11, 2017./VCG Photo

Therefore, it is urgent for APEC to find or create new pillars to deepen its economic integration in this changing world. A possible answer is China’s Belt and Road Initiative.

A deep cooperation between countries that favor B&R initiative within the framework of APEC may offer a key driver of global economic growth, create jobs for our people, reduce poverty and ensure that no one is left behind, as many ministers agreed at the meeting.

Especially, underscoring the importance of narrowing digital divides, it is widely accepted that APEC countries have to work together to ensure that economic development is sustainable and inclusive. And in this field, the various programs of digital infrastructure buildings proposed by China’s B&R Initiative may provide the most practical aid for those economies.

What is more, considering ways forward in APEC to improve regional connectivity and market integration, the B&R projects may also ease the business across borders and participate in trade by widening access and use of digital technologies.

In this vein, the minister’s meeting this year has sent a strong message to the global community that all members of APEC are confident in creating and maintaining a free, non-discriminatory and all-inclusive multilateral trading system, with higher levels of necessary infrastructure buildings and fairer norms and institutions regulating the international trade among them. This will provide a great opportunity to the people of APEC countries, as well as declaring leadership on a global level.

APEC Meeting: Importance of inclusiveness in economic growth

by Netralnews.Com, en.netralnews.com

PORT MORESBY, NNC – The two-day Asia-Pacific Economic Cooperation (APEC) Trade Ministers meeting, on May 25-26, 2018 in Port Moresby, Papua New Guinea, resulted in several agreements.

Among other things, the expansion of access for the participation of all levels of the Asia-Pacific community in economic and trade activities; optimisation of digital technology utilisation; internationalisation of Micro, Small and Medium Enterprises (MSMEs); strengthening connectivity across the region; and the creation of inclusive and sustainable growth.

Representing the Minister of Trade of the Republic of Indonesia, Director General of International Trade Negotiations at Ministry of Trade Iman Pambagyo welcomes various APEC initiatives and emphasises the importance of inclusiveness in economic growth.

"The development of internet and digital technology has greatly changed the pattern of global activity, including trade. We want all the people of Indonesia to benefit the economy as much as possible because these changes can encourage welfare equity," said Iman in a press release on Saturday.

According to him, the digital economy brings opportunities as well as challenges for all APEC economies, including Indonesia. "Indonesia is well aware of today's digital-based economic phenomenon. Going forward, we do not want to fall asleep and instead will prepare a variety of policies that benefit, as well as provide certainty and security," said Iman.

He added that in this case, Indonesian MSMEs and e-commerce platform plays an important role. "MSMEs represent almost 99 percent of Indonesian business people today. Through the right incentives, such as the facilitation of fast-growing e-commerce activities, our MSMEs will be able to increase their competitiveness and penetrate the global market optimally."

In addition to issues on digitalization and inclusiveness, in terms of trade, APEC also continues to accelerate the pace of achieving the 2020 Bogor Goals, fostering regional economic integration and connectivity in the Asia Pacific region.

The year 2020 will be an important moment for APEC. Departing from a deal 26 years ago in Bogor, APEC's big priority is to reduce various trade and investment barriers. The first phase for advanced economies has been made in 2010. Two years from now, achievements in developing economies should be able to complement APEC's success to create open and free trade and investment in Asia Pacific.

Ministers release joint statement following APEC trade meeting

xinhuanet.com

PORT MORESBY, Papua New Guinea, May 26 (Xinhua) -- In a sign of unity and cooperation, 21 Asia-Pacific trade ministers released a joint statement following the conclusion of Saturday's summit.

Over two days, the 24th APEC Ministers Responsible for Trade Meeting in Papua New Guinea's (PNG) capital city of Port Moresby, discussed a range of ways member economies can work together to strengthen cooperation, deepen economic integration and promote digital connectivity across the region.

"As a driver of economic growth and greater regional integration, through trade and investment liberalization and facilitation, APEC continues to contribute to job creation and the improvement of living standards in the Asia Pacific," the statement said.

"However, we recognise that the full benefits of trade have not reached all segments of our societies.

"The widening income gap, social inequality and the need to narrow the digital divide, as well as the increasing impact of environmental degradation pose great challenges."

In response, the ministers pledged to uphold the role of APEC as an "engine for sustainable economic growth and prosperity" which lays the foundations for a "shared future."

With this year's APEC theme, "Harnessing Inclusive Opportunities, Embracing the Digital Future", the minister's joint statement included a total of 52 acknowledgments, much of which focused on the importance of the Internet, e-commerce and digital economy.

"Technology and innovation, they are changing the pace of global trade and fostering innovative and inclusive growth in the Asia-Pacific region," the statement said.

"We are committed to promoting cooperation... and working together to bridge the digital divide."

The statement also reaffirmed the need for adequate investment through public-private partnerships in order to develop "quality infrastructure," that can drive growth and improve living standards.

"We encourage economies to continue joint work through policy dialogues and investment-related capacity building including community engagement to communicate the benefits of investment," the statement said.

Other topics addressed by the ministers included the role of female entrepreneurs will play in future economic growth, environmental sustainability and food security.

Chair of the meeting and foreign minister of PNG Rimbink Pato, accompanied the acknowledgements of the ministers with a statement of his own, expressing gratitude for the cooperation shown by delegates at the summit.

"We underscore that trade liberalization and facilitation are essential for achieving sustainable global growth and remain committed to continuing APEC's leadership to promote free and open markets," Pato said.

"Our commitment to keep our markets open, to fight against and to rollback protectionist and trade distorting measures, and we reaffirm our leaders' pledge to extend the standstill commitment until the end of 2020."

APEC trade ministers fail to agree on multilateral trade system

mainichi.jp | May 26, 2018

PORT MORESBY (Kyodo) -- Trade ministers from 21 Pacific Rim economies concluded talks in the south Pacific nation of Papua New Guinea on Saturday, but failed to reach a consensus on the issue of a multilateral trading system.

Following the two-day gathering of the Asia-Pacific Economic Cooperation forum, the ministers released a joint statement covering key discussion areas including promoting the digital economy and deepening regional economic integration.

However, the ministers struggled to agree on the issue of a multilateral trading system as embodied in the World Trade Organisation.

As a result, the APEC chairman, Papua New Guinea Foreign Affairs and Trade Minister Rimbink Pato, released a separate statement reflecting his assessment of the prevailing views of APEC economies.

"We underscore that trade liberalization and facilitation are essential for achieving sustainable global growth and remain committed to continuing APEC's leadership to promote free and open markets," said the statement.

"We therefore reaffirm our commitment to keep our markets open, and to fight against and to roll back protectionist and trade distorting measures, and we reaffirm our leaders' pledge to extend the standstill commitment until the end of 2020."

Both statements will be put to APEC leaders for their consideration ahead of their summit in November, also to be held in the Papua New Guinea capital Port Moresby.

APEC groups Australia, Brunei, Canada, Chile, China, Hong Kong, Indonesia, Japan, South Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, the Philippines, Russia, Singapore, Taiwan, Thailand, the United States and Vietnam.

APEC trade ministers united to ensure economic growth, free trade, connectivity

by Levi J Parsons, xinhuanet.com

PORT MORESBY, Papua New Guinea, May 26 (Xinhua) -- The 24th APEC Ministers Responsible for Trade Meeting concluded in Papua New Guinea's (PNG) capital city of Port Moresby on Saturday, with the nation's foreign mister and co-chair of the meeting Rimbink Pato labeling the talks a huge success.

"We have agreed to work collaboratively as we seek to drive sustainable economic growth and prosperity for the Asia Pacific region," Pato told reporters.

"Although there is a lot of ongoing work for APEC in the years ahead, we need to improve connectivity and deepen regional economic integration, as a united group we can address our challenges in cooperation so we ensure the success of economic growth, trade liberalization and freeing of markets."

With 21 member economies represented at the trade minister's two-day meeting, much of the talks focused on enhancing digital connectivity and using new technologies to drive economic growth.

"We have had a number of examples of small businesses over the last week presenting to senior officials and ministers on the question of what you can do in a remote area in terms of how you can connect up very small businesses to international markets," executive director of the APEC secretariat Alan Bollard told Xinhua.

One of those presentations came from a local PNG team who demonstrated how smartphone technology could be utilized to link makers of hand woven bilum products in remote villages with buyers from international markets.

According to PNG's delegate Wera Mori, this discussion on the digital future of the South Pacific was extremely fruitful.

"No doubt digital technology is very important," the commerce and industry minister told Xinhua.

"We must, not only be able to communicate but also connect with the rest of the world."

"It is a challenge but when there is a vision there is a way and we are working toward achieving that (with APEC)."

Member economies also agreed to work closely on improving food supply chains, bolstering free trade agreements, ensuring sustainable fishing across the Asia Pacific and creating more opportunities for female entrepreneurs.

APEC Leaders Meeting will take place in November in Port Moresby.

U.S-China spat casts shadow over Asia-Pacific free trade drive

by Jason Scott, bloomberg.com
May 25, 2018 

APEC unsettled by uncertainty over potential for trade war
Australia’s Coulton says ‘giants in the room’ having issues

The U.S and China’s on-again, off-again trade dispute is casting a shadow over Asia-Pacific nations’ efforts to further open up global trade, a senior Australian government official said.

Delegates at an Asia-Pacific Economic Cooperation forum in Port Moresby this weekend pledged to keep pursuing a free and fair international trading regime, in the face of rising protectionist sentiment. The Papua New Guinea capital in November will also host an Apec summit that will include Donald Trump and Xi Jinping, amid ongoing risks the US and China could unleash tit-for-tat tariffs.

“The two giants in the room are having issues,” Australia’s Assistant Trade Minister Mark Coulton said on the conference sidelines Saturday. Delegates are “certainly watching closely and are concerned because they don’t want to be caught up in the by-wash.”

Trump is on a mission to deliver on his election pledge to crack down on unfair trade practices by foreign countries. He proposed tariffs on up to $150 billion of Chinese imports, prompting preparations in Beijing to retaliate. While the U.S. appeared to step back from imposing the penalties earlier this week, the president’s changeable policy positions mean this hasn’t completely allayed market concerns.

Asian economies, which include many APEC members, would suffer more than China if Trump made good on his threats, according to an analysis by Bloomberg Economics. It estimates that for every 10 percent drop in China’s exports, growth in Asian economies would be cut by an average of 1.1 percentage points, while China’s would fall just 0.3 percentage point.

Far from Washington and Beijing, Port Moresby played host to representatives of the 21 APEC members, including U.S. Deputy Trade Representative Jeffery Gerrish and China’s Vice Minister of Commerce Wang Shouwen. Talks between the pair have been “cordial and generally constructive,” Coulton said.

“They’ve been quite measured in their contributions,” Coulton said. “They’ve both indicated their basic commitment to free trade. They haven’t been complete in their endorsement,” he said, adding that caveats like “fair” have been invoked quite regularly.

Some Confusion
Coulton said his discussions with fellow APEC delegates had revealed some confusion about how the mounting tensions between the world’s two biggest economies will play out.

“The elephant in the room is trying to pin down whether they’re going down a particular path on this,” he said. “If that was understood, maybe countries could work toward that, but maybe the irregular nature of what’s happening at the moment is what’s unsettling.”

Still, he said, that made other Apec members “even more determined” to ensure they “keep channels open and keep growing the opportunities for free trade and hopefully the storm that’s happening at the moment will settle down.”

Apec members reaffirmed a commitment to keep their markets open “and to fight against and to roll back protectionist and trade-distorting measures,” chair Rimbink Pato, who is also Papua New Guinea’s minister for foreign affairs and trade, said in a statement at the meeting’s conclusion.

They also pledged to recommit toward achieving a free-trade area in the Asia-Pacific and to bridge the “digital divide,” according to the final communique.

Australia funds Lae School of Nursing new academic building

Australian High Commission

Students of the Lae School of Nursing in Morobe Province will greatly benefit from the new infrastructure support provided by the Australian government.

 

Opening of the academic building at the Lae School of Nursing by Health Secretary Pascoe Kase, Australian High Commissioner Bruce Davis and Morobe Governor Ginson Saonu

Secretary for Health Pasco Kase and Australian High Commissioner, Bruce Davis opened the new academic building at the Lae School of Nursing on Tuesday, May 8.

The major infrastructure upgrade support valued at approximately K25 million is part of the Angau Hospital redevelopment project, an initiative under the Joint Understanding between the governments of Papua New Guinea and Australia.

Delegates with students in front of the new academic building at the Lae School of Nursing

Developments include the renovation of the administration building and construction of a new academic building complex. 

The new building complex includes tutorial rooms, a computer lab, library and student mess.

Tour inside the training facility at the Lae School of Nursing

The new facilities, which have the capacity to cater for over 300 students, will deliver a conducive teaching and learning environment for both staff and students.

Security lighting has also been installed to enable students to access school facilities and Angau Hospital for clinical practicals in the evenings.

The project, which was completed late last year and provided job opportunities and skills development for an estimated 90 local  construction workers, who were involved in the construction of the facilities.

The Lae School of Nursing was established in the 1960s and has a longstanding relationship with Angau Hospital, which continues as the school’s teaching hospital.

Through Australia’s partnership with Papua New Guinea, this assistance to the Lae School of Nursing will help to ensure the ongoing provision of adequately trained staff for the expanded facilities at Angau  Hospital, as well as addressing potential shortages of skilled health workers throughout the country.