Time for APEC to rethink its role in a changing global economy: South Korean foreign minister
South Korean Foreign Affairs Minister Cho Hyun discusses an elusive trade deal with the US, his views on North Korea, as well as the upcoming APEC summit in an interview with Correspondent Lim Yun Suk on CNA's East Asia Tonight.
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SEOUL: South Korea wants to use its turn as host of the Asia-Pacific Economic Cooperation (APEC) Summit to renew the trade bloc’s purpose and chart a fresh direction for cooperation.
South Korea’s top diplomat said the forum has been a success story in promoting trade growth and a multilateral trading system, but an evolving world demands fresh commitment from its members.
“(APEC) supported building the free trade and economic system after the end of the Cold War … and it has been successful,” said Foreign Affairs Minister Cho Hyun.
“However, we now face new challenges. So, it's a good time for APEC leaders to mull over and talk about the future of APEC.”
The trade bloc, founded in 1989, has held its economic leaders’ meeting annually since 1993.
In a week, the summit returns to South Korea for the first time in two decades. It will be hosted in the southeastern coastal city of Gyeongju.
Cho said that the “Gyeongju Declaration” – a joint statement traditionally named after the host city and adopted by consensus at the conclusion of each summit – will centre on three themes: connection, innovation, and prosperity.
“Connect means we facilitate trade and investment, and enhance contacts among states, institutions and people,” he explained.
“Innovation is to address the digital divide and enhance AI (artificial intelligence) operations. Finally, prosper means we try to achieve sustainable development among all the 21 APEC economies.”
TRADE & DEFENCE TIES WITH USA
South Korean President Lee Jae-myung is set to hold bilateral talks with United States President Donald Trump on the sidelines of the summit, with trade and defence expected to be key topics of discussion.
Last month, Cho suggested in parliament that the US is no longer the cooperative partner it once was to allies, a shift he views as both positive and negative.
“We were requested to put up money for investments … it’s an unprecedented request from an ally,” he told CNA.
In exchange for Washington lowering reciprocal tariffs on South Korea, Seoul agreed to invest US$350 billion in the US.
However, South Korea is concerned the commitment could strain its economy and is negotiating for the package to consist mainly of loans and guarantees rather than direct investments.
The foreign minister said he is “cautiously” optimistic that the two sides will be able to iron out “a number of remaining outstanding issues” before the end of the month.
“We would really like to have a win-win outcome that will benefit not only the US but also Korea,” he said.
Cho added that South Korea is also negotiating a defence pact with the US as part of efforts to upgrade its military and strengthen alliances.
“(The agreement includes) the modernisation of the Korean defence and the enhancement of the ally relationship. All these things have been discussed,” he said.
“Since the war in Ukraine, the world situation has changed. We have to be better prepared. (With the shifting) international order and challenges, I feel that the traditional allied relationship has to be adjusted.”
TRUMP MIGHT VISIT NORTH KOREA
Cho said delegates have been working closely with US counterparts to advance denuclearisation talks with North Korea.
He said Lee’s administration is keen on reducing tensions on the Korean peninsula and to achieve a permanent peace settlement.
“President Lee has made it clear that he will remain a pacemaker. He will encourage (and support) President Trump to meet with Kim Jong Un,” said Cho, referring to the North Korean leader.
However, the foreign minister added that “patience is an important element” in dealing with Pyongyang, which appears to have maintained a cautious approach since Lee took office in June.
“I've been carefully listening to what (North Korea) is saying. It looks like they've been careful not to escalate tensions since the launch of (South Korea’s) new government. We can look at it from a positive angle,” he said.
South Korea's Unification Minister Chung Dong-young told reporters on Friday he believed there was a "considerable" chance that Trump will meet Kim during his visit to the peninsula next week.
Trump is reportedly keen to recreate his high-profile meeting with Kim during his first term in office.
USA & CHINA AT APEC
All eyes are also on a possible meeting between Trump and Chinese President Xi Jinping at the APEC Summit.
Analysts have expressed concern that the rivalry between the world’s two largest economies could overshadow the forum.
Cho said South Korea is looking forward to hosting Xi in his first visit to South Korea in 11 years.
On balancing ties between Washington and Beijing, Cho said South Korea aims to promote cooperation that benefits all parties.
“Balancing doesn't mean we are standing in the middle,” he said. ”Depending on the issues, we can have cooperation – (although) somewhat different ideas – with China.”
Under previous President Yoon Suk Yeol, tensions with Beijing simmered as Seoul aligned more closely with Washington.
Cho said “trust-building” is top of the agenda when Chinese and South Korean officials meet at APEC.
“The previous Korean government has been rather criticised for his statements and foreign policy by China. I think this is a good time for us to improve the relationship without losing our basic policy and identity,” he said.
“China seems to be fully aware of the need for cooperation with Korea as well.”
Cho also expressed optimism about Japan’s newly appointed Prime Minister Sanai Takaichi, who is expected to hold a bilateral meeting with Lee on summit sidelines in Gyeongju.
“I’m sanguine about the new government in Japan,” he said. “Under the circumstances of the changing international situation, the Japanese leader might also think about the need for a closer relationship with Korea.”
The APEC CEO Summit will take place from Oct 29 to 31, alongside the ministerial meetings on Oct 29 and 30.
The APEC economic leaders’ meeting will follow from Oct 31 to Nov 1. The forum is expected to draw around 20,000 delegates, executives and officials.
