The Asia-Pacific Economic Cooperation (APEC) convened this year in Peru from Nov. 10 to Nov. 16 amid protests and transportation strikes, which are due to organized crime and extreme citizen insecurity. This APEC meeting was hosted in hopes of achieving the goal of “free and open trade & investment” across the Asia-Pacific region. APEC — initially consisting of 12 members in 1989, that now total 21 members — gathered to promote trade and economic growth between these economies.
Among the leaders in attendance were the host, Peruvian President Dina Boluarte, as well as Chinese President Xi Jinping, Indonesia’s President Prabowo Subianto, U.S. President Joe Biden, Canada’s Prime Minister Justin Trudeau, and Australia’s Prime Minister Anthony Albanese, among others.
Despite the summit’s conversation focusing mainly on future economic tactics and sustainability, Saturday ended with leaders discussing their worries about Donald Trump’s protectionist threats. With up to 20 per cent tariffs on imports to the U.S. — with up to 60 per cent in the case of goods from China, and even 100 per cent for Mexican-made goods — the economies have been driven to consider alternatives in trade beyond the U.S.
Dr. Bryce Wakefield, the chief executive of the Australian Institute of International Affairs, commented on the possible consequences of Trump’s commitment to cancel major climate initiatives and his backtrack regarding free trade.
“You can predict a lot more coordination between mid-sized economies as they attempt to diversify their relations away from the United States during such a fraught period … A lot of that investment may now be redirected towards countries with resources crucial to the green economy…”
Wakefield also said this could potentially give Australia an advantage due to its richness of eco-friendly resources and willingness to solidify liberalized trade.
“We are great champions of free and open trade, and it gives Australia an opportunity to reaffirm that.”
Australia is not the only country likely to gain from this deal. Trudeau pointed out that Canada had already handled Trump’s first presidency with “significant success” and remarked that trades can and should be mutually beneficial. This knowledge and experience in dealing effectively with Trump has put Trudeau in the spotlight for providing guidance on navigating deals with the U.S. president.
However, the highlight of the summit was Jinping, who was pictured next to Boluarte in the annual photo of the APEC members. Jinping partnered with South Korea’s President, Yoon Suk-Yeol, to collaborate on protecting the international free trade system. He also had his first meeting ever with Japan’s Prime Minister Shigeru Ishiba, and most notably launched a 1.3 billion dollar megaport in Chancay, Peru, to ease trade from South America to Asia. This project has not only brought worries from U.S. officials, but was also frowned upon by locals due to the industrialization of the sea.
Julio César, a 78-year-old fisherman, commented that areas that used to have fish have now been destroyed, but the responsibility lies on the Peruvian government.
“Our fishing spots no longer exist here. They’ve taken over a part of the sea … I don’t blame the Chinese for trying to exploit this place to the maximum, I blame our government for not protecting us.”
Regardless, the project is expected to make a significant profit and become a stepping stone and turning point for open trade and the global economy.
