Why APEC matters more than ever

Minister Todd McClay speaking at APEC 2025 in Jeju, South Korea

In mid-May, I had the privilege of representing New Zealand at the APEC Ministers Responsible for Trade (MRT) meeting in Jeju, Republic of Korea.

Despite the complex global trade environment, the meeting concluded with a consensus joint Ministerial statement—a significant achievement that underscores the enduring value of APEC as a forum for cooperation.

In an era marked by rising protectionism and geopolitical tensions, APEC’s ability to bring diverse economies together to find common ground is indispensable.

APEC’s 21 member economies account for over 75 percent of New Zealand’s exports and nearly 50 percent of global trade. Time and again, APEC has lived up to its reputation as the region’s premier economic forum.

The APEC process of exchanging ideas, instilling best practice, and building capacity, while at the same time adapting to radical changes in technology, geopolitics and trade policy, has yielded important gains across the region.

It is, for instance, now radically faster for an entrepreneur to establish a business or obtain a construction permit in the APEC region than it was a decade ago. And that same businessperson deals with less red tape and enjoys a more level playing field thanks to regulatory good practice and pro-competition policies.

APEC’s voluntary and non-binding activities have a record of influencing negotiations in other fora, and in some cases building over time into legally enforceable ‘hard rules’.

For example, APEC’s discussions on optimising customs procedures and trade facilitation measures established norms and guiding principles that in turn informed binding rules in our FTAs with APEC and other trading partners.

For instance, the six-hour clearance procedure for chilled products in the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA), Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP) can be attributed to the work of APEC.

A more recent example is the Agreement on Climate Change, Trade and Sustainability (ACCTS), which New Zealand signed last year. Its chapters on Environmental Goods and Environmental Services were drawn from work progressed in APEC.

McClay: "...APEC’s ability to bring diverse economies together to find common ground is indispensable."

For New Zealand, the MRT meeting is also an opportunity to advocate for our exporters and reinforce our commitment to open markets with some of our key trading partners.

This time I engaged in bilateral discussions with counterparts from the United States, China, Indonesia, Singapore, Japan, Korea and other key partners, emphasising the importance of reducing trade barriers and fostering certainty for businesses.

I also took part in a meeting of ministers from the CPTPP, where we instructed officials to work towards dialogues with the European Union (EU) and the Association of Southeast Asian Nations (ASEAN) to navigate the challenges across the global economic landscape.

New Zealand remains committed to engaging actively in APEC. As a seasoned trade minister, I have witnessed firsthand the benefits of international cooperation.

Right now, we are facing unprecedented challenges to the rules-based multilateral trading system that has served New Zealand and the world well for the past for over 75 years. APEC’s role in facilitating dialogue and building consensus is therefore more critical than ever.

By working together, we can address shared challenges and ensure that trade continues to be a driver of prosperity for all.

We will continue to champion free trade, support the rules-based international order, and work collaboratively to build a more resilient and inclusive global economy.

The recent APEC meeting showed me we are not in this alone.

The Foundation's Asia in Focus initiative publishes expert insights and analysis on issues across Asia, as well as New Zealand’s evolving relationship with the region.