"With geopolitical shifts and changing roles of regional and international organizations creating a host of issues we must address, I hope people around the world will come to see how important each meeting held at this year's Asia-Pacific Economic Cooperation (APEC) leaders' meeting (hereafter APEC 2025) is." Eduardo Pedrosa, APEC executive director, said this in a recent interview about the significance of APEC 2025. He was officially appointed APEC executive director at the 35th APEC Ministerial Meeting held in Lima, Peru, in Nov. 2024. Before joining the APEC Secretariat, he served as secretary-general of the Pacific Economic Cooperation Council (PECC). The following is a Q&A.
—What are Korea and Gyeongju's strengths as the host of APEC 2025?
"First, Gyeongju is an inspiring place to begin the APEC 2025 journey. Known as a 'museum without walls' and the capital of Silla for nearly 1,000 years, Gyeongju offers a comfortable setting for the candid conversations APEC seeks. Korea has set the right priorities for APEC 2025: artificial intelligence (AI) and demographic change. Korea's innovative, future-oriented mindset and Gyeongju's deep-rooted history remind us that future progress must be built on the foundations of history."
—What role will APEC 2025 play in promoting trade and economic cooperation?
"APEC is a very valuable forum where 21 economies can gather in one place to exchange views, coordinate policies, and find common solutions. The private institutional sector also participates in these discussions through the APEC Business Advisory Council and the APEC CEO Summit, and discussions center on economic priorities. APEC operates by consensus and does not negotiate binding rules, providing the flexibility for each economy to test new approaches, share best practices, and build trust. APEC's initiatives have guided discussions in areas such as trade facilitation and digital standards. In particular, at the 'Jeju APEC Ministerial Meeting on Trade' held in Jeju in May, we could see that spirit in action. Even amid tensions in the global trading environment, a joint statement was adopted after constructive discussions."
—What cooperation is needed to restore supply chains?
"Supply chains are like electric wires that are hard to see in normal times. When a wire is cut, it immediately affects the community. APEC is putting a lot of effort into practical ways to make supply chains more resilient. The first source of resilience comes from efficient, predictable, and transparent cross-border trade procedures. APEC has already promoted several initiatives over the years to reduce trade expense, and on that basis is modernizing customs systems through electronic certificates of origin, AI, and blockchain pilots. The second source of resilience comes from the ability to anticipate and respond to shocks. APEC economies are building crisis forecasting systems for this purpose and, through cooperation between the public and private institutional sector, are enabling rapid responses to logistics bottlenecks. The final source of resilience is preparation for the future. Sustainability and digitalization are at the core of resilience. APEC is ensuring the reliability, efficiency, and sustainability of supply chains by setting environmental and social standards and promoting digital trade."
—Cooperation on AI is said to be an important agenda item for APEC 2025.
"AI has now established itself as a general-purpose technology that is changing how we work, trade, and deliver public services. Every working group within APEC is now dealing with AI-related issues. The applicability of AI is being discussed across various areas, including digital governance, communications, food security, health, and workforce development. The maturity of AI policy and technological readiness vary greatly among economies. APEC provides a forum for cooperation to address this. While APEC does not create binding global rules, it is also a platform for laying the foundations of trust and interoperability. Priorities include sharing AI best practices, experimenting with new use cases, and aligning policy approaches. Another priority is preparing people and businesses for the transition to digital technologies. In particular, we are focusing on helping small businesses adopt new tools and bridge the digital divide."
—What legacy will APEC 2025 leave for future generations?
"What we want to leave from APEC 2025 is not simply a list of outcomes, but momentum and a sense of purpose for the future. The theme of APEC 2025, 'Building a sustainable tomorrow: connection, innovation, and prosperity,' ties directly to momentum and a sense of purpose for the future. We want to make 2025 a turning point. While the 21 APEC economies focus on practical cooperation that improves lives around the world, we also aim to lead efforts to maintain supply chain reliability, ensure the prosperity of small and medium-sized enterprises, and prepare for digital and demographic change."
—What advice would you give to the Korean government and citizens?
"Korea is already doing an excellent job as the host of APEC 2025. It is showing strong leadership in raising important issues—such as digital innovation, AI, demographic change, and food security—with the community. Hosting APEC is an opportunity for the host to show the world what it considers important. Korea has great strengths in world-class technology, rapid development, and a culture and creative sectors that inspire the region."
—What specifically is needed for inclusive growth?
"Inclusivity is a core value of APEC. Work on trade, investment, and structural reform ultimately improves people's lives. Greater effort is needed to ensure the benefits of growth reach everyone. To that end, it is important to guarantee access to basic services—such as education, health care, social protection, and infrastructure—and to provide opportunities for full participation in economic activity."
—How is APEC responding to climate change?
"Climate change goes beyond an environmental issue and is affecting the entire global economic system. APEC has gradually addressed climate change since the 2007 climate change leaders' declaration1), and it is discussing the issue closely tied to economic cooperation. Concrete initiatives such as the food security roadmap, the supply chain connection framework, and the expansion of renewable energy are responding to climate change."
—What policies is APEC pursuing to bridge the digital divide?
"Bridging the digital divide is central to inclusive growth. Through its digital economy roadmap, APEC is promoting digital access in rural and economically marginalized areas."
Glossary
1) 2007 climate change leaders' declaration
A leaders' declaration adopted at the APEC leaders' meeting held in Sydney in 2007. It recognized that climate change, energy security, and economic growth are interconnected priority challenges and agreed to respond proactively together.
※ This article was published in the Oct. issue of the monthly Tongsang. Please search for 'Monthly Tongsang' on Naver.