Trade ministers from the 21 economies of the Asia-Pacific Economic Cooperation (APEC) issued a joint statement advocating for significant reforms in the World Trade Organization (WTO) during their recent two-day meeting in Jeju, South Korea.

The statement acknowledges the pivotal role of the WTO in managing global trade issues while highlighting the need for the organization to adapt to recent geopolitical and economic developments.

The APEC ministers underscored that the WTO currently faces multiple challenges that necessitate 'meaningful, necessary, and comprehensive reform' to enhance its relevance and responsiveness in the context of the evolving global trade landscape.

The joint statement subtly addressed the ongoing trade disputes, specifically between China and the United States, which have escalated tensions and disrupted critical supply chains.

Both nations are involved in a series of retaliatory tariffs that have significant ramifications for international trade.

Recent changes to US tariff policies, announced by President Donald Trump, have particularly affected several APEC member economies, with over half experiencing increased tariffs on goods as part of a strategy to address trade deficits.

Among the impacted nations, the Philippines has faced a 17% reciprocal tariff, reflecting broader concerns among APEC members regarding the implications of tariffs and trade disputes for the global economy.

However, the joint statement refrained from proposing specific solutions to these tariff-related challenges, focusing instead on broader issues concerning supply chains.

The APEC group emphasized the importance of maintaining dialogues about supply chain resilience to foster sustainable economic growth throughout the region.

The statement noted, 'We support efforts to ensure that supply chain issues continue to be discussed within APEC to enhance the resilience of supply chains for sustainable economic growth across the APEC region.' Additionally, it recognized the crucial relationship between trade and food security, aiming to minimize disruptions in food supply chains while promoting sustainable agricultural practices.

Despite the acknowledgment of serious trade issues, the statement revealed significant disparities in viewpoints among APEC member states regarding tariffs.

However, a collective interest in deeper economic integration was evident, emphasizing the potential for a proposed Free Trade Area of the Asia-Pacific (FTAAP) to facilitate this goal.

Ministers also explored the potential benefits of digital transformation, the role of artificial intelligence in trade facilitation, and initiatives aimed at empowering micro, small, and medium enterprises (MSMEs).

Commitments were made to advance the cross-border recognition of electronic trade-related documents, furthering APEC’s agenda of enhancing trade efficiency and connectivity among member economies.