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Inside Out & Outside In
Opinion
David Dodwell

Inside Out | Resurgence of trade protectionism means Malaysia – and Apec – face huge challenges for 2020

  • Apec has unfinished business, including how it defines the ‘free and open’ trade it was supposed to have achieved by 2020. How this, the rise of protectionism and threat of climate change, is addressed will set the tone for its next 25 years

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Malaysian Prime Minister Mahathir Mohamad, whose country will chair the Asia-Pacific Economic Cooperation for 2020. Photo: AFP

No, I did not spend last week in steamy Hangzhou simply to cruise the West Lake and hobnob at sumptuous banquets. The real work was to help our region’s business leaders craft and prioritise their messages to leaders of the 21 Asia-Pacific Economic Cooperation (Apec) economies when they meet in November in Santiago.

Apart from some blunt language over the economic harm being done across the region by the US tariff war against China, there were strong words against rising protectionism. There was firm support for the World Trade Organisation as the best forum in which to set trade rules and settle trade differences.

A quieter, but equally important discussion was over the future of Apec, and its priorities, after 2020.

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Why 2020? Because in 1994, when Apec was just five years old, Apec leaders met in Bogor and set in stone a bold 25-year vision: free and open trade and investment in the Apec region by 2020. The richer member economies were instructed to reach the target by 2010, and the remaining less-endowed economies by 2020.

And it has been for the Chilean government chairing Apec this year, and Malaysia who take over chairmanship in January, to lead a grand audit of progress, to identify “unfinished business”, to confirm ongoing priorities – and to lay foundations for a post-2020 vision.

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Then leaders of (from left) Mexico, Japan, Indonesia, the United States, Malaysia and South Korea pose for a group photo during the Apec summit in Bogar, Indonesia, in 1994. Malaysia’s then prime minister, Mahathir Mohamad, returned to office last year and his country will chair Apec for 2020. Photo: AFP
Then leaders of (from left) Mexico, Japan, Indonesia, the United States, Malaysia and South Korea pose for a group photo during the Apec summit in Bogar, Indonesia, in 1994. Malaysia’s then prime minister, Mahathir Mohamad, returned to office last year and his country will chair Apec for 2020. Photo: AFP
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