The Asia-Pacific Economic Cooperation (APEC), a group of 21 countries, warned on Thursday that exports in the region will grow very little this year because of new tariffs from the United States. The U.S. and Chinese trade officials met during the APEC meeting to talk about trade issues.
APEC said exports in the region are expected to increase by only 0.4% this year, much less than last year’s growth of 5.7%. They also lowered their prediction for regional economic growth to 2.6% from 3.3%. The group explained that trade is slowing down because of less demand for products, especially in manufacturing and consumer goods. The uncertainty caused by tariffs is also affecting trade in services.
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The U.S. tariffs affect more than half of the APEC member countries. Over the years, tariff rates in the region have dropped a lot—from 17% in 1989 to 5.3% in 2021—helping trade grow a lot. But the new tariffs are causing problems again.
At the meeting, U.S. Trade Representative Jamieson Greer and Chinese trade official Li Chenggang had talks, which could help reduce trade tensions between the two countries. They had already agreed in May to cut some tariffs during a meeting in Geneva.
During the two-day APEC meeting, trade representatives will discuss ways to improve global trade and reform the World Trade Organization (WTO), which the U.S. has criticized for allowing China to gain an unfair advantage.
South Korea’s Trade Minister Cheong In-kyo, hosting the meeting, said the global economy is facing many uncertainties. He encouraged the APEC members to keep talking and work together to solve political and economic problems.
APEC policy director Carlos Kuriyama said the U.S. tariffs are not only affecting trade in goods but also services and financial markets. This is why trade talks are still ongoing and progress is slow.
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Jamieson Greer will also meet with trade officials from South Korea, New Zealand, and other Asian countries during the meeting. He said they are trying to move as quickly as possible with countries that want to work on trade improvements.
The APEC meeting includes trade ministers from countries like Japan, Canada, Mexico, and Russia. It is part of the preparation for a bigger leaders’ summit later this year in South Korea. APEC members make up about half of the world’s trade and 60% of the global economy.
