Shaping APEC’s role

APEC Summit Week in Lima marks the 35^th anniversary of APEC's founding. The members will review and assess accomplishments and set a direction for future cooperation. Under the theme "Empower, Include, Grow", host Peru will promote three priorities: trade and investment for inclusive growth and connectivity; innovation and digitalization to promote the transition from an informal economy to a formal, global economy; and sustainable growth for self-reliant development.

Major events will be held on Thursday and Friday, including the APEC Summit to discuss APEC’s inclusive development agenda, APEC's vision and action plan, the Dialogue between APEC Leaders and guests on enhancing the effectiveness of APEC cooperation and promoting inter-regional economic linkages, the Dialogue between APEC Leaders and the APEC Business Advisory Council (ABAC), and the APEC CEO Summit with its theme "Gateway to the Land of Opportunity".

Other sessions will discuss the role of small and medium-sized enterprises and the participation of indigenous communities in the development process. New Zealand's Minister of Land Information Chris Penk said that given global trade instability, APEC plays an even more important role.

"APEC is the premier forum in the region, promoting ideas to improve and increase trade. Obviously, its traditional role is an incubator of ideas, which are always welcomed, particularly at this time, where we have a number of challenges within the region and globally as well. Free dynamic trade environment is that we want to encourage," said Penk.

Amid geopolitics complications like the conflicts in Ukraine and the Middle East, the APEC Summit is expected to promote dialogue between leaders of countries and create a synergy effect similar to last year’s event in San Francisco, where US President Joe Biden met Chinese President Xi Jinping.

Renato Reyes, Peru's senior official in charge of APEC, said: “APEC was established in 1989 with the mandate to be a non-political forum, unaffected by geopolitical issues. However, it has been changing. For the past three years, we have seen how APEC responds to reality. I think it’s APEC’s new strength.”

Side events

A topic outside the main agenda that may generate much discussion this year is the impact of the US Presidential election on global trade, particularly among APEC members.

Observers say Trump’s presidency will force APEC economies to prepare response scenarios to changes in US trade policy. During his election campaign, Trump repeatedly said he will increase import taxes on goods imported into the US, ranging from 10% to 60%, or even 100% in some cases.

Trump’s statements raise doubts about whether President Joe Biden, who is attending the Summit, can make any firm commitments to APEC’s priorities. US Assistant Secretary of State for Western Hemisphere Affairs Brian Nichols said the US has been committed to APEC for more than three decades and that is unlikely to change under the new administration.

"The American people have selected our next President and look forward to the next administration setting their own policy and goals. You know, the United States has had numerous Presidents since APEC began and we've been engaged and active in the Pacific region continuously over the course of 38 years. We are very excited to continue that in the years ahead."

 Another side event that is attracting public attention is economic and infrastructure cooperation between China and Latin American countries, particularly Peru. Chinese President Xi Jinping is scheduled to join Peruvian leaders to inaugurate the Chancay port, 80km from Lima. This, the largest deep-water port in South America, was built by the Chinese Cosco Group at a cost of 3.5 billion USD. Once operational, it’s expected to be the main South American port for trade with Asian countries as it can halve the transport time by sea (from 40 days to 20 days) because vessels won’t have to go through the Panama Canal.