(3rd LD) [APEC 2025] APEC leaders agree that trade should promote benefits for all in joint declaration

In early November 2025, leaders from the 21 member economies of the Asia-Pacific Economic Cooperation (APEC) convened in Gyeongju, South Korea, to engage in crucial discussions mapped out in the Gyeongju Declaration. This declaration emphasizes a vital principle: trade and investment should advance in a manner that confers benefits on all participants, reflecting a collective commitment to enhancing economic cooperation amid an increasingly complex global landscape.

The Asia-Pacific region encompasses over half of the world’s economy, with notable members such as the United States, China, Japan, and Russia. During this meeting, APEC leaders reaffirmed their collective belief in the power of robust trade and investment as fundamental ingredients for regional prosperity. However, the nuances of the current geopolitical climate presented challenges that affected the declaration’s language.

A noteworthy departure from previous APEC statements is the omission of references to the World Trade Organization (WTO) and its multilateral trade system. Historically, APEC leaders have upheld the rules-based trading structure, but the current declaration refrained from reaffirming this commitment. This reflects a growing rift in perspectives about trade among some of the most influential economies in the world. The past few years have seen a general consensus among APEC economies advocating for a WTO-centric trade order, yet differing views regarding free trade, especially following the resurgence of the “America First” policy under former President Donald Trump’s administration, have complicated discussions.

The absence of direct references to the WTO raises questions about the cohesiveness of APEC, particularly in navigating the contrasting trade policies of its major players. The ongoing trade tensions between the U.S. and China are pivotal in shaping these discussions, as they underline the need for a diplomatic approach to ensure that free trade agreements are beneficial for all member economies. The declaration’s lack of explicit support for a multilateral trading system could point toward a shift in focus, suggesting that APEC might prioritize broader themes of resilience and economic inclusivity over traditional trade frameworks.

In addition to trade, the Gyeongju Declaration introduced a significant emphasis on technological advancements and demographic shifts—two critical areas identified by South Korea as cornerstones for future regional growth. The incorporation of artificial intelligence (AI) and recognition of cultural and creative industries as potential growth sectors reflects a forward-looking approach to economic cooperation. This inclusion is especially salient given the rapid technological changes that are transforming industries worldwide. APEC leaders are acutely aware that harnessing technological innovation is both an opportunity and a necessity for sustaining economic momentum amidst global uncertainty.

The declaration presents several actionable commitments, which are accompanied by two supplementary documents focused on establishing initiatives to harness the potential of AI and to address demographic changes. By framing these initiatives within the broader narrative of the Gyeongju Declaration, APEC aims to foster a cohesive response to the challenges posed by technology and changing population dynamics.

The discussion surrounding demographic changes is particularly relevant in the context of an aging population in several member economies, including Japan and South Korea. This demographic challenge presents unique hurdles but also opportunities for innovation, particularly in sectors such as healthcare, education, and workforce development. By addressing these issues collaboratively, APEC members aspire to create more resilient economies that can adapt to shifting demographics.

Moreover, cultural and creative industries are gaining traction as vital components of economic growth. Acknowledging this sector signals a recognition of the value of creativity and cultural exchange as drivers of innovation and economic activity in the region. This emphasis aligns well with the increasing globalization of culture and the arts, which have proven to be significant in transcending traditional economic barriers.

As the APEC summit concluded, the importance of unity in addressing complex global challenges cannot be overstated. The leaders faced strong international issues such as economic disparities, technological evolution, and geopolitical tensions. Achieving consensus on these multifaceted matters, especially in a landscape where trade relationships are increasingly fragile, is essential for promoting a thriving and inclusive economic ecosystem in the Asia-Pacific region.

While the Gyeongju Declaration demonstrates progress in some areas, the omission of explicit support for the WTO reflects ongoing divisions among key member economies. This trend could indicate a gradual reconfiguration of the APEC framework and its future strategies. The commitment to deepening economic cooperation and ensuring that trade benefits all is laudable, but the practical steps taken to realize this goal will be critical.

In conclusion, the Gyeongju Declaration signals a pivotal moment for APEC as it navigates the challenges and opportunities of trade, technology, and demographics. The shift in focus from a strict adherence to multilateral trade systems towards a broader scope of economic cooperation may enable member economies to adapt more flexibly to future changes. Going forward, the effectiveness of APEC in fulfilling its mission will hinge on its ability to balance diverse interests while fostering an inclusive environment for trade and investment—a goal that remains as relevant today as it has ever been.

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