Gyeongju: Amid serious challenges to the global multilateral order and deepening protectionist moves, South Korea was seen taking a leadership role at last week’s Asia-Pacific Economic Cooperation (APEC) summit by providing a platform for world leaders to discuss the free trade system and shared future tasks. The summit, held in the southeastern city of Gyeongju, took place at a time when the United States and China were at odds over tariffs and trade issues, and global trade dynamics were shifting dramatically, driven largely by the Trump administration’s aggressive tariff policies.
According to Yonhap News Agency, through overnight negotiations up to the day of the summit, South Korea aimed to bridge differences among APEC members, including the U.S., China, Japan, and Russia. This effort culminated in the successful adoption of the Gyeongju Declaration and two other key outcome documents. The declaration urges member nations, which represent more than half of the global economy, to collaborate in promoting cultural and creative industries as a means of spurring economic growth.
There were initial concerns about a potential failure to adopt a joint declaration, reminiscent of the 2018 APEC summit in Papua New Guinea when the U.S. and China could not reach consensus on WTO reforms, resulting in only a chair’s statement. However, South Korea’s leadership facilitated an agreement on a text acceptable to both the U.S. and China, as noted by the presidential office.
South Korea also addressed regional challenges such as the development of artificial intelligence (AI) and demographic changes. The AI Initiative adopted at the summit marked the first leaders-level agreement on AI involving both the U.S. and China, underscoring the significance of this achievement.
Reflecting the shifting global order, this year’s leaders’ declaration notably omitted direct reference to the World Trade Organization (WTO), a typical inclusion in past APEC leaders’ declarations. Instead, a compromise text was included in the ministerial-level joint statement.
The Gyeongju APEC summit also provided a stage for global diplomacy, including the first face-to-face meeting between Trump and Chinese President Xi Jinping since Trump’s second term amid their escalating trade war. The talks in Busan on Thursday resulted in a “ceasefire” agreement and discussions about potential future mutual visits.
President Lee Jae Myung concluded the summit with tangible outcomes, marking a significant diplomatic milestone since he took office in June. He engaged with world leaders on pressing security and economic issues, including one-on-one discussions with Trump, Xi, and Japanese Prime Minister Sanae Takaichi.
In a notable development following talks with Trump, Seoul and Washington reached an agreement on a framework tariff deal, featuring a $200 billion cash investment in the U.S., with annual investments capped at $20 billion as part of a broader $350 billion investment pledge. Additionally, during talks with Xi, Lee fostered positive relations with Beijing, agreeing on the need for cooperation to promote peace on the Korean Peninsula and enhance practical collaboration.