APEC Calls For Fewer Trade Barriers To Sustain Regional Growth As Rising Restrictions Pose Challenges

KUALA LUMPUR, Nov 15 (Bernama) -- Rising trade restrictions across the Asia-Pacific region are posing challenges to businesses and supply chains, with the number of trade-restrictive measures in force nearly three times the number of trade-facilitating measures, said APEC Policy Support Unit director Carlos Kuriyama.

He said the growing use of trade remedies, including anti-dumping measures, safeguards and countervailing duties, showed the need for member economies to avoid unnecessary restrictions, particularly on critical goods and production inputs.

He said that while merchandise trade in the APEC region expanded sharply in the first half of 2026, supported largely by strong demand for technology-related products, the outlook could moderate over the next two years amid supply chain disruptions and trade policy uncertainty.

"We have to avoid unnecessary restrictions, especially on critical goods and critical inputs," he said during an APEC virtual media briefing today.

Kuriyama said trade growth this year had been driven largely by high-value-added technology products, particularly semiconductors used in artificial intelligence (AI) applications, as well as increased demand for minerals and other raw materials required in their production.

However, he cautioned that mounting geopolitical tensions and disruptions to maritime shipping routes were adding to vulnerabilities in global supply chains.

He cited disruptions in the Persian Gulf and Red Sea, as well as restrictions affecting the Panama Canal due to water shortages, as factors weighing on global maritime freight volumes.

In contrast, global air freight had strengthened in 2026, supported by increased trade in high-value technology products, although West Asia remained an exception due to airport disruptions, he said.

On measures to address trade-related challenges, Kuriyama said APEC was placing greater emphasis on trade digitalisation, which could significantly reduce transaction costs and improve cross-border business efficiency.

He said a Policy Support Unit study found that digitalising trade processes could reduce transaction costs by 5.6 per cent, while private sector studies estimated potential economic gains of between US$5 billion and US$11 billion from full trade digitalisation.

Kuriyama said a single trade transaction could currently require between 10 and 20 paper-based documents, highlighting the potential savings from adopting electronic authentication, digital signatures, e-invoicing and electronic document submissions.

Meanwhile, APEC Secretariat executive director Eduardo Pedrosa said efforts to facilitate trade must continue even as economies face growing protectionist pressures.

He highlighted the proposed APEC Centre of Excellence for Paperless Trade, known as ACCEPT, as an initiative that could help businesses overcome administrative barriers and access international markets more easily.

Pedrosa said excessive paperwork and compliance requirements could disproportionately affect smaller businesses, which often lacked the legal, financial and administrative resources available to larger corporations.

"For a very small company, you're not going to be able to trade and that reduces opportunities for bigger markets," he said.

He also pointed out the importance of engaging the business community to identify the actual obstacles preventing companies from expanding, making investments and participating in international trade.

Pedrosa said APEC's discussions with businesses during the ongoing Economic Leaders’ Week would help policymakers better understand whether tariffs, export constraints or other regulatory requirements were restricting business growth.

APEC is an intergovernmental forum for 21 member economies in the Pacific Rim that promotes free trade throughout the Asia-Pacific region, representing approximately three billion people and 61.6 per cent of global gross domestic product (GDP) in 2025.

-- BERNAMA