Apec warns of fragile global trade amid unease over US tariffs
JEJU, SOUTH KOREA, May 16 — The Asia-Pacific Economic Cooperation group said today that it was 'concerned' over the challenges to global trade, as ministers from Apec countries met in South Korea in the shadow of growing woes from US tariffs.
Trade ministers from the top economies that make up Apec are meeting on South Korea's Jeju Island amid concerns for the global trading system since US President Donald Trump unveiled bombshell levies on most partners.
The United States is a key Apec member and was represented by Trade Representative Jamieson Greer, who held a series of bilateral meetings with nations eager to soften the blow of Washington's tariffs.
'We are concerned with the fundamental challenges faced by the global trading system,' trade ministers from the 21-member group, which includes China, said in a joint statement.
They urged greater cooperation, saying they 'remain committed' to Apec as a means of 'bringing us together to address the economic challenges facing our region'.
South Korea's Minister for Trade, Cheong In-Kyo, said the joint statement was hard-won, with 'significant differences' in positions clear early on in the talks.
But at the last minute, the countries 'dramatically' reached an agreement, he said, with the Apec emphasising the importance of global trading mechanisms such as the World Trade Organisation (WTO), as well as sustainable supply chains.
This 'sends a highly positive signal to global markets', he said, adding that 'Apec members can work together to navigate the current highly uncertain global trade environment effectively'.
No joint response to US
Cheong said there had been no discussion of 'joint responses' to US tariffs, saying it was not possible as 'each country faces significantly different circumstances'.
South Korea recorded a US$66 billion (RM283 billion) trade surplus with the United States last year — behind only Vietnam, Taiwan, and Japan — making it a key target of Trump's trade tirade.
Highly dependent on exports, the country has been hit hard by the 25 per cent tariffs on automobiles imposed by Trump in early April.
Greer also met South Korea's Trade, Industry and Energy Minister, Ahn Duk-geun, later in the day.
Ahn said in a press conference that the two sides agreed to hold a 'second round of technical consultations'.
The South Korean delegation will fly to Washington next week to discuss issues such as trade and economic security.
Ahn said he emphasised to Greer that South Korea has a free trade agreement with the United States.
'I made it clear that, against this backdrop of strong industrial cooperation, the current tariff issue has become a significant concern.'
Trump announced additional 'reciprocal' tariffs of up to 25 per cent on South Korean exports last month, but later suspended them until early July.
'Our objective is to finalise an agreement before that date, and we are making every effort to meet this timeline,' said Ahn.
'I believe other countries are in a similar situation, and the United States has no reason to delay either.'
Seoul aims to leverage the talks with commitments to purchase more US liquefied natural gas (LNG) and offer support in shipbuilding, a sector in which South Korea is a leader, after China.
Earlier today, Greer met Chung Ki-sun, the vice chairman of HD Hyundai, which owns South Korea's largest shipbuilding company.
HD Hyundai said in a statement that discussions covered cooperation with US shipmaker Huntington Ingalls Industries.
Greer also met the CEO of South Korean shipbuilder Hanwha Ocean, which provides maintenance, repair and overhaul services for US Navy vessels.
Shares of Hanwha Ocean rose nearly three per cent this morning, while HD Hyundai Heavy Industries gained as much as 3.6 per cent. — AFP
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
17 minutes ago
- The Sun
Malaysia brings ASEAN voice to OECD meeting in Paris
KUALA LUMPUR: ASEAN, which is chaired by Malaysia this year, has expressed full support for all efforts to strengthen open markets and uphold a rules-based multilateral trading system as the foundation for sustainable and inclusive global growth. The Permanent Representative of Malaysia to the World Trade Organisation (WTO), Ambassador Syahril Syazli Ghazali said the ASEAN chairmanship's theme 'Inclusivity and Sustainability' reflects Malaysia's priority in promoting a fair, sustainable and inclusive trade. 'In addressing the emerging global headwinds and uncertainties, ASEAN Geoeconomics Task Force (AGTF) was established to monitor, assess and recommend policy responses to strengthen ASEAN – as a single market,' he said in a statement to Bernama today. Syahril Syazli represented Malaysia at the Organisation for Economic Co-operation and Development (OECD) Ministerial Council Meeting (MCM) held from June 3 to 4 in Paris. Malaysia is also spearheading various initiatives to build a digitally resilient ASEAN, in particular, driving the ASEAN Digital Economy Framework Agreement (DEFA) negotiations, towards substantial conclusion by the end of this year. 'DEFA is a cornerstone in facilitating and promoting the 'inclusivity' of ASEAN, and ensuring the region will continue to enjoy digital trade benefits,' he said. On empowering micro, small and medium enterprises (MSMEs) as well as women, Syahril Syazli said Malaysia is fostering digital skills for women entrepreneurs via national programmes such as EmpowerHER Digital and Women Exporters Development Programme, aimed to integrate more women-led businesses into the international value chain. 'The landmark initiative to establish ASEAN's first Women's Economic Empowerment Centre in Kuala Lumpur, announced last month, would further enhance the role of women in economic development as well as promote inclusive growth in the region,' he added.
Free Malaysia Today
44 minutes ago
- Free Malaysia Today
OpenAI finds more Chinese groups using ChatGPT for malicious purposes
OpenAI banned ChatGPT accounts that generated social media posts on political and geopolitical topics relevant to China. (AFP pic) SAN FRANCISCO : OpenAI is seeing an increasing number of Chinese groups using its artificial intelligence (AI) technology for covert operations, which the ChatGPT maker described in a report released today. While the scope and tactics employed by these groups have expanded, the operations detected were generally small in scale and targeted limited audiences, the San Francisco-based startup said. Since ChatGPT burst onto the scene in late 2022, there have been concerns about the potential consequences of generative AI technology, which can quickly and easily produce human-like text, imagery and audio. OpenAI regularly releases reports on malicious activity it detects on its platform, such as creating and debugging malware, or generating fake content for websites and social media platforms. In one example, OpenAI banned ChatGPT accounts that generated social media posts on political and geopolitical topics relevant to China, including criticism of a Taiwan-centric video game, false accusations against a Pakistani activist, and content related to the closure of USAID. Some content also criticised US President Donald Trump's sweeping tariffs, generating X posts, such as 'Tariffs make imported goods outrageously expensive, yet the government splurges on overseas aid. Who's supposed to keep eating?'. In another example, China-linked threat actors used AI to support various phases of their cyber operations, including open-source research, script modification, troubleshooting system configurations, and development of tools for password brute forcing and social media automation. A third example OpenAI found was a China-origin influence operation that generated polarised social media content supporting both sides of divisive topics within US political discourse, including text and AI-generated profile images. China's foreign ministry did not immediately respond to a Reuters request for comment on OpenAI's findings. OpenAI has cemented its position as one of the world's most valuable private companies after announcing a US$40 billion funding round valuing the company at US$300 billion.
Free Malaysia Today
44 minutes ago
- Free Malaysia Today
India coal-fired power output falls at fastest pace in five years in May
Renewable energy output surged to a record high of 24.7 billion kWh in May. (Wiki pic) SINGAPORE : India's coal-fired electricity generation in May fell at the fastest pace in five years, as overall power demand declined for the first time since August and renewable energy generation rose to a record high, a Reuters analysis of government data showed. Increased generation from less polluting power sources including hydro and nuclear also led to a decline in natural gas-fired power output, which fell at the steepest rate in nearly three years, a review of data from the federal power grid regulator Grid India showed. The decline in demand for fossil fuels for electricity generation in India – the second largest importer of coal and the fourth biggest buyer of liquefied natural gas (LNG) – comes at a time when benchmark prices of the fuels are under pressure. 'Demand from the power sector – typically strong during peak season – remained limited. Additionally, economic headwinds have weighed on non-power industries,' Indian coal trader I-Energy said in a note this week. Asian spot LNG prices LNG-AS have declined more than 15% this year, while benchmark prices of thermal coal have plunged to more than 4-year lows due to weak demand from China and India – the top coal importing countries. India's coal-fired power generation fell 9.5% in May on an annual basis to 113.3 billion kilowatt-hours (kWh), a review of data from the federal power grid regulator Grid India showed, marking the sharpest year-on-year decline since June 2020, when the COVID-19 pandemic led to a nationwide lockdown. A sustained slowdown in demand for fossil fuels for power generation could help the world's third largest emitter of greenhouse gases slash emissions after it previously boosted its reliance on coal to power a post-pandemic economic recovery. India has repeatedly cited lower per capita emissions compared with richer nations to defend its high coal use. Utilities in China and India have cut dependence on coal and LNG imports this year also due to record coal stocks and slower growth in power demand. India had forced gas-based power plants to operate last year to meet high power demand as temperatures soared. As power demand is lower and prices are high for gas-fired power to be competitive with other sources such as solar this year, utilities will buy fewer volumes, said Prashant Vashisth, vice president at Moody's affiliate ICRA. Total electricity generation in May fell 5.3% year-on-year to 160.4 billion kWh, the data showed, with the highest peak demand about 8% lower on-year at 231 GW, mainly due to milder temperatures, government officials said. Peak demand – a measure of the maximum electricity requirement over any given time – reached 250 GW during a heatwave in May 2024. Meanwhile, renewable energy output surged to a record high of 24.7 billion kWh in May, up 17.2% from a year earlier, with its share in the overall power mix rising to 15.4% – the highest since records began in 2018. The share of coal in India's power mix dropped to 70.7% in May, down from 74.0% a year earlier and the lowest level since June 2022, according to the Grid India data. Hydropower generation jumped 8.3% to 14.5 billion kWh, accounting for 9.0% of total generation compared to 7.9% in May 2024, the data showed. Natural gas-fired power generation fell 46.5% annually to 2.78 billion kWh in May, the steepest decline since October 2022.
