APEC business leaders call for urgent return to a predictable trading environment
Toronto,26 April 2025 — Senior business leaders from around the APEC region expressedconcern at the recent rapid shiftsin the globaltrade and financial landscape during the second APEC Business Advisory Council(ABAC) Meeting of 2025.
ABAC membersunderscored that the region’s businesses were struggling to navigate thecascading effects of new tariffs, including disrupted supply chains, risingcosts, eroding business confidence and destabilized financial markets. TheApril 2025 World Economic Outlook from the IMF predicts that over thenext two years, global GDP will be 0.8 percentage points lower than had beenforecast in January 2025.
Ahighly uncertain operating environment undermines planning, investment and innovation.This constrains growthand our region’s ability to tackle serious challenges including climate change,ageing societies and digitalization.
Call for Leadership and Unity
ABACis urging APEC Trade Ministers, who meet next month in Jeju, Korea, to makeclear their commitment to APEC’s founding goals of free and open trade, and tothe fundamental principles of the World Trade Organization (WTO).
ABACbelieves that predictability and non-discrimination are key to restoring businessconfidence. ABAC is calling for all APEC economies to act in a way that is fullyconsistent with the WTO rulebook. Ministers should also work together tostrengthen and reform the WTO, including restoring a fully functioning disputesettlement system.
APECneeds to accelerate progress on early deliverables under the Free Trade Area ofthe Asia Pacific agenda. Digital transformation would have a multiplier effect:key priorities include advancing digital trade interoperability, sustainableand responsible Artificial Intelligence (AI) and establishing a Centre ofExcellence for Paperless Trade to build momentum towards universal digitaltrade facilitation.
ABACis calling on APEC to do more to shore up the resilience of supply chains. An open and stable maritime order based onthe rule of law is critical. So are policies that support resilient healthcaresupply chains. For even greater health security in the context of an ageingpopulation and other demographic shifts, we also need to get the right policysettings in place to unlock opportunities in innovative medical technologieslike genomics and AI.
ABACurges APEC to do much more to embrace the green economic transition, noting that this is nowurgent. Key actions include closing critical financing gaps for the energytransition, and establishing a Greener Trade Framework.
ABACis also making a strong business case for dismantling structural impediments tofull economic participation, citing compelling real-world studies on the businessand broader economic benefits of closing gender pay gaps, improving access toventure capital for women entrepreneurs, and helping small businesses totransition to the formal economy.
“Wewelcome the opportunity to discuss our concerns and collaborate on solutions atthe upcoming APEC Ministers’ meeting in May,” said Chair H.S. Cho. “The choicesmade today will determine our region’s economic trajectory for generations tocome.”
“Ourmessage to APEC is clear: business is ready to lead, but we need Ministers tomatch our ambition with action. The future of our shared prosperity depends onit,” the ABAC Chair concluded.
TheChair thanked ABAC Canada for the excellent arrangements and for organizing importantside events on digital technology. He expressed deep gratitude to the Canadiangovernment for their strong support in hosting the meeting.
ABACwill reconvene in July in Hai Phong, Viet Nam, as it continues to finalize itsrecommendations to achieve APEC’s goals, for presentation to APEC Leadersduring their summit in October in Korea.
APEC Member Economies: Australia;Brunei Darussalam; Canada; Chile; China; Hong Kong, China; Indonesia; Japan;Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; Peru; Philippines;Russia; Singapore; Chinese Taipei; Thailand; United States of America; and VietNam.
ABAC was created by APEC Leaders in1995 to be the primary voice of business in APEC. Each economy has threemembers who are appointed by their respective Leaders. They meet four times ayear in preparation for the presentation of their recommendations to theLeaders in a dialogue that is a key event in the annual Leaders Meeting.
Under Korea’s leadership, ABAC ispursuing a work program under the theme “Bridge. Business. Beyond.” to respondto the challenge of maintaining the economic vitality of the Asia-PacificRegion and ensure it benefits all.
ABAC 2025 Chair is H.S. Cho (Korea) and the Co-Chairs are Julia Torreblanca(Peru) and (China), with five (5) working group chairs, namely: Anna Curzon,Regional Economic Integration Working Group (REIWG); Ning Gaoning,Sustainability Working Group (SWG); Michaela Browning, Finance and EconomicWorking Group (FEWG); Jan De Silva, AI and Digital Innovation Working Group(AIDIWG); and Kyuho Lee, Bio and Healthcare Working Group (BHWG).
Forfurther information please contact:
Mr.Hyungkon Park, ABAC Executive Director 2025 Phone:+82 2 6050 3686 Email: 2025apecabac@korcham.net
Mr. Antonio Basilio, Director, ABACSecretariat Mobile: +63 917 849 3351 Email:abacsec@pfgc.ph
