Seoul: Rules-based, open plurilateralism can become a solution to global trade uncertainties caused by protectionism and unilateralism, South Korean Trade Minister Yeo Han-koo said Thursday, calling on the Asia-Pacific Economic Cooperation (APEC) to continue discussions for upgrading the global trade system to reflect the rapid development of cutting-edge technologies and new trade norms.
According to Yonhap News Agency, in a press conference after the APEC Ministerial Meeting, Yeo stated that most of the APEC member economies agreed that global trade faces an array of challenges, including unilateral trade protection measures, non-tariff trade barriers, and the integration of economic and security issues. He emphasized that constructive discussions were shared on possible solutions to these challenges, highlighting rules-based open plurilateralism as a significant approach.
Yeo noted the continued importance of the multilateral trading system centered on the World Trade Organization but stressed the need for the system to adapt to change, indirectly referring to the United States’ tariff scheme. Plurilateralism, defined as international cooperation of a smaller group of countries, is often contrasted with multilateralism.
Addressing the ongoing trade tensions between the U.S. and China, Yeo expressed hopes for the two largest economies, also Korea’s top trading partners, to find a “balance point” that would stabilize supply chains and resolve various issues, aligning with Korea’s interests. He also highlighted Korea’s significant security alliance with the U.S. and its intricate economic connections with China.
APEC members agreed on the necessity for deeper cooperation to address the digital divide between developed and developing nations, as well as between large and small companies, due to the anticipated impacts of digital technologies, such as artificial intelligence, on the global trade landscape. To tackle this, Korea proposed an “AI for Supply Chain” initiative aimed at enhancing AI capabilities in developing countries and small to medium-sized enterprises.
Additionally, Seoul proposed a joint statement to maintain a zero tariff rate for electronic transmissions to strengthen infrastructure for digital trade. During the plenary session, Yeo highlighted APEC’s significant contribution to the global economy and the need to overcome economic uncertainty, fragmented supply chains, and the escalating climate crisis without allowing these challenges to create divisions.