APEC ministers stand firm on favoring free trade, rejecting protectionism

Foreign relations and commerce ministers from the 21 APEC member economies met here on Thursday and Friday in an effort to renew their focus on globalization and international trade.

The meeting took place against a divided backdrop as it considered a study into the feasibility of a Free Trade Area of the Asia-Pacific (FTAAP) at a time when enthusiasm for global trade seems to have stalled, with the Brexit vote and the victory of U.S. President-elect Donald Trump seen as examples thereof.P However, a joint statement issued Friday defied these events, providing a resounding show of support for free trade and globalization although this included an acknowledgement that more needs to be done to ensure free trade benefits all people and not only elites.

In opening remarks to the 2016 APEC Ministerial Meeting on Thursday, Peru's Second Vice-President Mercedes Araoz challenged the ministers to reaffirm the value of free trade.

"You see what is going on in the world right now, this anti-globalization situation that we face. What is there for us in the global world? Is it worth it to integrate? Is it worth it to build up an agenda of integration or is it only for the big companies and not for us?The most important thing is that people are receiving the benefits," Araoz said.

This theme was warmly received and driven home by Peru's Minister of Foreign Trade and Tourism Eduardo Ferreyros, who said "we strongly believe that if we continue working on trade liberalization and facilitation, we will ... generate greater growth and ultimately set higher living standards for our people."

The joint statement highlighted a number of priorities which will be presented to the leaders of the 21 APEC members during their Economic Leaders' Meeting on the weekend.

These are strengthening regional economic integration and quality growth, support for the multilateral trading system, commitment to achieving the Bogor Goals that aim for free and open trade and investment in the Asia-Pacific region, sustaining global value chains, building green growth, strengthening comprehensive connectivity and working on building the FTAAP.

The latter commitment was the most eagerly anticipated as a free-trade area of this magnitude would cover the Asia-Pacific region with 2.8 billion people, 57 percent of the world's gross domestic product and 49 percent of global trade.

Ferreyros told a press conference that the ministerial meeting had struck a consensus on advancing the FTAAP and considered two examples, the Trans-Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership (RCEP).

The joint ministerial statement was clear that the FTAAP is currently desired by APEC members.

"We reaffirm our commitment to advance the process in a comprehensive and systematic manner towards the eventual realization of the FTAAP as a major instrument to further APEC's regional economic integration agenda," read the statement.

The ball will now roll on to the APEC leaders who will meet over the weekend, with the statement explaining that "we instruct APEC officials to further develop and implement the work programs ... in order to enhance economies' capabilities towards the realization of the FTAAP."

The ministers were also clear in their common stance against protectionism, reaffirming a pledge to roll back protectionist and trade-distorting measures, which weaken trade and slow down the progress and recovery of the global economy. Endi