President Ferdinand Marcos Jr. said the world heaved a sigh of relief after the meeting between US President Donald Trump and Chinese President Xi Jinping eased trade tensions between the two largest economies. The highly anticipated meeting took place on the sidelines of the Asia-Pacific Economic Cooperation (APEC) in Busan, South Korea.
The meeting, one of the most anticipated events on the sidelines of the Asia-Pacific Economic Cooperation (APEC), ended with Trump agreeing to slash the total combined tariff rate on China from 57 percent to 47 percent. Marcos said it was very hard to obtain information about the meeting, but based on what he got, the US and China have declared a year-long “peace.” Before leaving for South Korea to attend the APEC summit, Marcos said the meeting between Trump and Xi would color the actions of the members of the economic bloc.
Meanwhile, economies are concerned that the structures behind the creation of the World Trade Organization (WTO)—which was formed to ensure free and smooth global trade—are no longer effective, Marcos said, after APEC issued a declaration that did not mention the international body. The Gyeongju Declaration, which was adopted by APEC leaders during the conclusion of their 32nd summit on Sunday, is widely seen as a departure from earlier joint statements as it did not contain the term “World Trade Organization.” The declaration by the 21-member economic bloc merely acknowledged the importance of a trade and investment environment that “promotes resilience and benefits for all.”
The move has been linked to the US government’s criticisms against the WTO and protectionist policies, such as the Trump administration’s imposition of tariffs on several countries’ exports. “The fear that everyone is feeling now is that the principles and the strictures that guided the creation of WTO are no longer in place or at least no longer effective. And a great deal of what was spoken about is that we have to return to the free market principles that WTO was created for,” Marcos told reporters here last Saturday.
“Now, it seems that the first idea that the WTO will help us open markets between countries is not being followed... The trend now is the opposite. It’s closing markets,” he added. The US has slapped tariffs on the exports of several countries—including its traditional ally, the Philippines—to address what Trump described as “trade disparities” and to support its local industries.