APEC body sounds protectionism alarm

Amid the global trend towards an open market, protectionism has again reared its ugly head to threaten international trade, according to the Asia Pacific Economic Cooperation Business Advisory Council (ABAC).

In a recent meeting in Hong Kong, China, the ABAC, which for the Philippines is represented by members of the Private Sector Advisory Council (PSAC), voiced serious concerns regarding the global shift towards protectionism and regional fragmentation.

ABAC said the backslide risks decades of economic progress brought by free trade.

ABAC chairperson Julia Torreblanca of Peru emphasized that continued commitment to collaboration, open markets and non-discrimination is crucial to the region’s prosperity.

“These policies have driven the success of our economies. APEC must stay the course on deeper economic integration to avoid undermining inclusive and sustainable growth,” she stated.

Urgent issue

“Guided by our theme of “People. Business. Prosperity,” we have developed a set of recommendations to address these urgent issues,” Torreblanca indicated.

“These recommendations cover the strengthening the World Trade Organization (WTO), revitalizing the strategy for the Free Trade Area of the Asia Pacific, advancing digital trade, bolstering the resilience of global supply chain, establishing a greener trade policy framework to tackle the climate crisis and empowering women in trade.”

The recommendations will be tabled during the APEC Ministers Responsible for Trade in a meeting next month in Arequipa, Peru.

The ABAC head noted that a delegation met WTO’s director general in a recent visit to Geneva to convey its support for the multilateral body and its reforms agenda.

“We are particularly worried at the prospect of WTO Members agreeing to end the e-commerce moratorium and tariffs on digital trade,” Torreblanca added.

“This will hugely increase uncertainty and costs, which will hit small businesses the hardest.”

ABAC, meanwhile, has developed recommendations that include promoting women’s transition to the formal economy, unlocking women’s access to venture capital and promoting STEM (science, technology, engineering and math) careers and digital skills.

Such expertise includes boosting women’s participation in green trade. ABAC applauded the first joint meeting between APEC Ministers Responsible for Trade and Ministers for Women that will take place in May.

ABAC will convene its next meeting in early August in Tokyo, Japan as it works to finalize its recommendations for presentation to APEC leaders during the APEC Economic Summit in November.