New | Threat of Trump-led protectionism hangs over Apec meeting in Lima

A US withdrawal could undermine the economic order regional leaders are trying to establish. But if America retreats, China could have a chance to move centre stage

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Peruvian Foreign Minister Ricardo Luna Mendoza (left) and Peruvian trade minister Eduardo Ferreyros attend a press conference at the Apec meeting in Lima, Peru, on Friday. Trade and foreign ministers from 21 nations concluded their meeting by calling for a fight against protectionism and trade-distorting measures. Photo: Xinhua

Published: 10:00am, 20 Nov 2016Updated: 7:50pm, 20 Nov 2016

Concerns that US protectionism will increase under the Trump administration threaten to overshadow the Apec talks in Lima, where nearly a dozen world leaders are gathered for talks on shaping regional trade

But a step inwards by the United States could give China a chance to move into the gap and possibly build momentum for its own trade frameworks.

On Friday, trade and foreign ministers from 21 nations, including the US, China and Russia, concluded their ministerial meeting by calling for a greater focus on international trade and battling protectionism and trade-distorting measures, which could “weaken trade and slow down the progress and recovery of the international economy”, they said in a joint statement.

The ministers finished a collective strategic study on the Free Trade Area of the Asia-Pacific (FTAAP), which was seen as a competitor to the US backed Trans-Pacific Partnership, a free-trade deal among Pacific Nations but which excludes China and Russia.

But underlying the talks is the deep uncertainty of what trade policy direction the US, the world’s largest economy, will take when president-elect Donald Trump takes office in January.

A protester holds signs against the Trans-Pacific Partnership during a rally in Lima, Peru, on Friday. Photo: AP

On the campaign trail, he vowed that if elected the US would drop out free-trade agreements including the TPP and Nafta, the deal between Mexico, the US and Canada. His threats have fuelled speculation China would use the Apec summit to push its own trade initiatives, including the FATTP and the Regional Comprehensive Economic Partnership (RCEP), which groups ten members of Association of South East Asian Nations, as well as China, Japan, South Korea, New Zealand, Australia and India, but leaves US behind.