APEC ministers vow to fight protectionism

Asia-Pacific ministers meeting in Vietnam this week pledged to fight protectionism and embrace the World Trade Organization, issuing a statement a day after President Donald Trump criticised the WTO as hurting US economic interests.

In a statement issued three days after members began meeting in Danang, ministers vowed to “recommit to fight protectionism.” The move comes after days of haggling by trade representatives over the framework of a blockbuster Pacific trade pact abandoned by Trump straight after he took office. The statement, which highlighted the importance of multinational trade agreements, underscored how the US president’s protectionist tilt risks isolating America on the global trade stage.

“Countries were embraced by the World Trade Organization, even if they did not abide by its stated principles,” Trump said during a speech at the Asia-Pacific Economic Cooperation summit on Friday. “Simply put, we have not been treated fairly by the World Trade Organization.”

In contrast, in the ministerial statement released on Saturday ministers said they “recognise the work of the WTO in ensuring international trade is rules-based, free, open, fair, transparent, predictable and inclusive.” They committed to “cooperate to improve the functioning of the WTO.”

In an interview in Vietnam this week, WTO Director-General Roberto Azevedo warned the Trump administration’s decision to block new appointments to the watchdog’s appellate body is compromising the ability of the system to resolve disputes.

“The US has said consistently that they think the appellate body functioning could be improved,” he said. “They think the appellate body sometimes overreaches, particularly in a moment when the WTO was not delivering negotiated outcomes that there was a temptation of the appellate body to legislate. Other members disagree.”

“It’s important we try to find a solution, the sooner the better because the impact is already being felt,” he said.