APEC can deepen trade ties despite FTA fatigue, officials say

Regional policymakers have suggested that APEC can play a meaningful role in advancing trade cooperation even as enthusiasm for new free trade agreements wanes internationally. The assessment emerged from discussions among APEC finance ministers convening in Hong Kong, where officials explored alternative pathways to deepen economic integration across the Asia-Pacific.

The shift in focus reflects broader global trends, with protectionist sentiments and domestic political pressures tempering appetite for ambitious new trade pacts. However, officials indicated that strengthening and expanding existing agreements offers a practical approach to maintaining momentum on regional economic cooperation.

APEC, which comprises 21 economies accounting for roughly 60 per cent of global GDP, has historically served as a forum for advancing trade liberalisation across the Asia-Pacific. Officials suggested that rather than pursuing entirely new frameworks, the grouping could concentrate on enhancing implementation and broadening the scope of established trade arrangements.

The discussion underscores efforts by the region's finance ministers to find pragmatic solutions to trade policy challenges amid shifting geopolitical and economic conditions. Officials indicated their commitment to sustaining momentum on economic integration while acknowledging the political constraints facing governments pursuing new trade liberalisation initiatives.