BY jihoon lee
SEOGWIPO, South Korea, May 16 (Reuters) – The Asia-Pacific Economic Cooperation group adopted a statement on Friday that cited “fundamental challenges” facing the global trading system, but stopped short of discussing a joint response to US tariffs looming large over its meeting.
The annual gathering is the first major multilateral trade gathering since US President Donald Trump’s announcement of sweeping tariffs that hit more than half of the 21 members of the bloc with US import duties in excess of the 10 percent minimum.
“We are concerned with the fundamental challenges faced by the global trading system,” APEC members said in the joint statement.
They also said they remained committed to APEC as the main forum for regional economic cooperation and addressing the economic challenges facing the Asia-Pacific region.
The statement expressed support for the continued role of the World Trade Organization, while noting its shortcomings.
“We recognise the importance of the WTO to advance trade issues, and acknowledge the agreed-upon rules in the WTO as an integral part of the global trading system.”
The statement also said that “the WTO has challenges and needs meaningful, necessary, and comprehensive reform to improve all its functions, through innovative approaches, to be more relevant and responsive in light of today’s realities”.
The Trump administration views the WTO as a body that has enabled China to gain an unfair export advantage and has recently moved to suspend US funding to the institution.
Kim Yong Jin, a management professor at Sogang University in Seoul, said the joint statement reflected US claims “they are at a disadvantage under WTO, and that needs to be fixed.”
APEC warned at the start of the meeting that exports from a region that accounts for around half of world trade would slow sharply this year as a result of the US tariffs.
Earlier on Friday, some diplomats from member countries had expressed doubts the group would even be able to adopt a joint statement, although they said South Korea Minister for Trade, Cheong In-kyo, had pushed hard for some consensus.
“There was new momentum created through these meetings to overcome a difficult situation … as APEC urged a trans-regional effort to break through uncertainties engulfing the global economy,” Cheong told a briefing.
In February, a Group of 20 meeting of finance ministers and central bankers in Cape Town failed to agree a joint communique after top officials from several countries, including th
