Promoting Inclusive Growth: Leaders call for more economic freedom to offset trade war fallout

World
Europe

02:02

One of the concerns being raised at this year's APEC meeting centres around a trade war between the US and China. Several leaders are calling for greater economic freedom to help reduce any potential global fallout. Greg Navarro has more.

Their arrivals into the capital city of Port Moresby were captured by photographers - just as have been for past APEC meetings. But this year's event is different - held under the backdrop of a potential trade war between China and the US.

JONATHAN PRYKE LOWY INSTITUTE "APEC is ostensibly about economic integration between APEC nations but we are now in a context where many of these nations are actually, are taking more, are stepping away from liberalizing. They are taking more protection, they are engaging more protection policies."

That threat has raised concerns here about the global economic fallout, and prompted several leaders to warn their APEC colleagues against creating economic barriers.

PETER O'NEILL PAPUA NEW GUINEA PRIME MINISTER "Free trade must be embraced so that we can enhance freedoms for our people, freedoms for greater investment opportunities, opportunities for expanding businesses and creating greater job options for our people."

United States President Donald Trump chose not to attend - sending Vice President Mike Pence in his place - with a message of renewed US commitment to the region.

Chinese President Xi Jinping received a warm welcome - and talked about economic unity across the region.

GREG NAVARRO PORT MORESBY "There is a good reason why the leaders gathered here in Port Moresby are concerned about the broader impacts from a potential trade war, especially when you consider that the 21 economies they represent account for close 40-percent of the world's population, and about 50% of global trade."

That's why economists believe many leaders are working harder this year to further relationships and create more economic opportunities across the region.

TIM HARCOURT, ECONOMIST UNIVERSITY OF NEW SOUTH WALES "I think some of these organizations provide something of a buffer for some of these rough edges in potential trade wars."

By prompting economies to come together to help lessen the economic blow if trade war tensions escalate. Greg Navarro, CGTN, Port Moresby.