The Asia-Pacific Economic Cooperation (APEC) on May 13 warned that exports in the region will hardly grow this year due to the impact of US tariff measures.
The warning comes as the 21 member economies begin their annual meeting of trade ministers on Jeju Island, South Korea.
In the regional trend analysis report released at the event, APEC forecasts export growth in 2025 to only 0.4%, down sharply from 5.7% in 2024. At the same time, the forecast for regional economic growth was also adjusted down to 2.6%, compared to 3.3% last year.
The growth of trade in the APEC region is declining sharply due to reduced external demand, especially in the manufacturing and consumer goods sectors, while uncertainty surrounding goods is putting pressure on the service sector, the APEC statement said.
The sweeping tariff policies initiated by the Trump administration have affected more than half of the economies in the APEC bloc. Previously, the average tax rate in the region fell from 17% in 1989 - when APEC was established - to 5.3% in 2021. This period also saw the turnover of goods increase more than 9 times.
During the two-day meeting, trade representatives from member economies will discuss issues related to multilateral trade and regional cooperation, including reforming the World Trade Organization (WTO) in the context of many current challenges.
On the sidelines of the conference, US Trade Representative Jamieson Greer is scheduled to hold bilateral meetings with his Korean counterpart - three weeks after the first round of talks in Washington, D.C. - and other Asian countries.
Responding to CNBC before leaving for Jeju, Mr. Greer said: "We are doing it as quickly as possible with partners with similar wishes." His office declined to disclose the specific schedule of the meetings.
China's Deputy Trade Minister Li Zhenjiang also attended the conference, but it is unclear whether he will continue to meet Greer at Jeju, following a direct meeting in Geneva on May 10 and 11, where the two sides agreed to cut high tariffs.
This trade minister meeting is part of the second round of high-ranking officials, towards the APEC Leaders' Summit scheduled to take place in Gyeongju, South Korea later this year.
APEC now accounts for about half of global trade and 60% of world GDP.
