As the 2025 Asia Pacific Economic Cooperation (APEC) leaders' summit in Gyeongju is set to open, some analysts say APEC is losing its original meaning as a consultative body aiming for economic growth and prosperity in Asia and the Pacific. They note it is shifting away from the traditional framework of economic cooperation such as reducing tariffs and opening markets, and being reorganized into a cooperation system centered on economic security, including ▲ securing supply chains ▲ protecting strategic industries ▲ strengthening alliances.
At the plenary session of the 2025 Gyeongju APEC leaders' summit on the 31st, U.S. President Donald Trump and Chinese President Xi Jinping, who will pay state visits, as well as the leaders and representatives of the 21 member economies will attend. Global attention is focused on the U.S.-China summit on the 30th. This is because the global economy could be shaken depending on whether the two countries reach a trade deal. Multilateral cooperation within the region is weakening and the importance of bilateral talks is growing, turning APEC into a diplomatic stage.
According to Reuters and other foreign media, the broad tariffs imposed by the Trump administration this year have applied to more than half of APEC member economies. APEC projected that exports from the 21 member economies will grow only 0.4% this year. Last year's increase was 5.7%. This contrasts with the fact that when APEC was launched in 1989, the average member tariff rate was 17%, which fell to 5.3% by 2021, while trade volume increased ninefold over the same period.
The weakening of APEC's original purpose as multilateral cooperation based on free trade is attributed to the rise of protectionism around the world since late last year. After being elected late last year, President Trump moved to reduce the U.S. trade deficit and revive manufacturing. An APEC policy support official said, "With the rise of protectionist moves and unfair trade practices like subsidies, an environment has formed in which corporations are putting decisions on hold and curbing cross-border activity."
Korea commissioned a related study last year to prepare for the Free Trade Area of the Asia Pacific (FTAAP), but the process was reportedly halted as protectionism intensified after President Trump's election. FTAAP is a regionwide free trade agreement (FTA) in Asia and the Pacific led by China, and it was mentioned at the 2020 APEC held after President Trump lost the last election.
At this APEC, which is being held far from openness and free trade, even drafting a joint declaration is proving difficult. Minister Cho Hyun of the Ministry of Foreign Affairs said at a comprehensive audit by the National Assembly's Foreign Affairs and Unification Committee on the 28th, "There are differences between countries over whether to include language supporting free trade in the APEC leaders' joint declaration."
Kim Tae-hwang, a professor in the Department of International Trade at Myongji University, said, "Protectionism, the core of the Trump administration's policy, runs counter to APEC's key values of 'free' and 'open,'" adding, "APEC's declaration is not binding, but even a mere formal declaration of multilateral cooperation may not be achieved." During Trump's first term, in 2018 and 2019, APEC also failed to adopt a joint declaration.