APEC ministers renew commitment to free trade

LIMA – Ministers of the Asia Pacific Economic Cooperation (APEC) member-economies have renewed their commitment to free trade, vowed to help small businesses, blasted protectionism that they said distort trade and promised to fight corruption.

In a nine-page joint statement on their meeting here on Nov. 17 and 18, the APEC ministers said open trade policies “are essential for sustained recovery and boosting growth for coming years.”

“Faced with rising skepticism over trade and stagnated trade growth, we reiterate our commitment to build an open economy in the Asia-Pacific featuring innovative development, interconnected growth and shared interests,” the APEC ministers said.  

“We also believe that the benefits of trade and open markets need to be communicated to the wider public more effectively, emphasizing how trade promotes innovation, employment and higher living standards, and creates opportunities for our citizens that can support inclusive growth,” they added. 

The ministers also promised to use policy tools – monetary, fiscal, and structural – to strengthen global demand and address supply constraints.

“We reaffirm our commitment to strengthen the multilateral trading system and recognize the important role of international trade to job creation, sustained economic recovery, development and prosperity,” they said. “We underline our confidence in the value and centrality of the rules-based, transparent, non-discriminatory, open and inclusive multilateral trading system embodied in the WTO (World Trade Organization).”

Foreign Affairs Secretary Perfecto Yasay Jr. and Trade Secretary Ramon Lopez represented the Philippines during the two-day meeting.

The APEC ministers’ meeting came amid concerns that the election of Donald Trump as the next president of the United States and the withdrawal of the United Kingdom from the European Union or “Brexit” could lead to protectionist policies that can stifle free trade. 

Trump, who defied pollsters by defeating Hillary Clinton in the US presidential race, has vowed to dump the Trans Pacific Partnership, renegotiate the North American Free Trade Agreement and impose tariffs on countries like China and Mexico. 

The UK, meanwhile, voted to leave the EU last June in a move seen as a protest against bailouts on less wealthy member countries, liberal immigration policies and restrictions that prevent the British government from signing its own trade deals.

The ministers of the 21-member economic bloc promised to support the effort of the WTO and other international groups in monitoring protectionism, which they said would weaken trade.

“We reaffirm the pledge made by our leaders against protectionism through a standstill commitment that we recommend be extended until the end of 2020 and to roll back protectionist and trade-distorting measures, which weaken trade and slow down the progress and recovery of the international economy,” the APEC ministers said.  

“We reaffirm our collective and individual commitment to further promote trade and investment liberalization and facilitation and to reduce or eliminate restrictions and enhance cooperation to address ‘behind-the-border’ barriers through undertakings in line with APEC’s work on structural reform.” 

The APEC ministers also cited the need to modernize micro, small and medium enterprises (MSMEs) and to work for an environment that would enable such businesses to flourish. They also vowed to help small businesses enhance their capacities and gain access to capital and information and communications technology infrastructure.

“It is important for each APEC economy to promote MSMEs’ active participation in global value chains through measures to address challenges faced by MSMEs in conducting overseas business development (like) improving infrastructure (and) ensuring transparency in legal systems and business practices,” the ministers said. 

To encourage investments, the APEC ministers promised to address corruption and other illegal trade practices.

“We will commit to highlight the importance of best practices shared on the implementation of anti-corruption and anti-bribery compliance programs designed to prevent and detect bribery, considering incentives by member economies to encourage businesses to establish effective voluntary anti-corruption programs and support for our pathfinder dialogues on fighting corruption and illicit trade,” they said.