APEC News

Global Standards, Local Impact: How Standards and Conformance is Shaping APEC 2025 By Byung Goo Kang, Chair, APEC Sub-Committee on Standards and Conformance. The SCSC plays a vital role in regulatory harmonization, compliance, and best practices across various sectors. In a world where technology evolves at lightning speed, how do we ensure that our systems speak the same language? Standards and conformance may not make daily headlines, but they are the invisible forces driving seamless global trade and innovation. For over three decades, the APEC Sub-Committee on Standards and Conformance (SCSC) has been at the forefront of harmonizing international standards, reducing technical barriers to trade, and fostering regulatory cooperation across the Asia-Pacific region. As we look ahead to 2025, SCSC is setting its sights on the next frontier: building a sustainable tomorrow. A legacy of progress Since its establishment in 1994, the SCSC has addressed a range of issues related to enhancing production and facilitating international trade in the APEC region. We have promoted closer alignment with international standards, strengthened cooperation with international organizations, and facilitated mutual recognition agreements in some priority areas. The SCSC has also contributed to the development of technical infrastructure in the APEC region and increased transparency in standards and conformity assessment requirements. In line with Putrajaya Vision 2040's goal of realizing an open, dynamic and peaceful Asia-Pacific community, the SCSC has made tangible impact and achievements in recent years. For example, the SCSC's efforts have been instrumental in driving domestic regulatory development. It has played an important role in driving economic growth and alignment with international standards. Our member economies recognize that in standardization and conformity assessment, the SCSC promotes regional cooperation and strengthens the alignment of domestic standards and global practices. The SCSC is actively supporting trade facilitation by reducing technical barriers to trade, improving market access, and participating in the development process of the World Trade Organization's (WTO) Technical Barriers to Trade (TBT) and Sanitary and Phytosanitary (SPS) committees. Key focus areas for 2025 As part of APEC’s broader theme of “Building a Sustainable Tomorrow” and the three priorities of “Connect, Innovate, and Prosper,” the SCSC will focus on four key areas in 2025:   Standards and conformance cooperation in the AI field Artificial Intelligence (AI) is revolutionizing industries around the world. With the accelerating development of the technology, standards and conformance assessments to ensure the reliability and interoperability of AI are emerging as important issues. In 2025, the SCSC will host the AI Standards Forum Conference, bringing together APEC economies to share information and best practices for developing AI standards and building certification systems in the APEC region, discuss ways to increase interoperability and compatibility among AI systems, and build a network of AI-related experts to promote the safe and harmonious development of AI. Developing the next generation of experts in standards and conformity assessment The future of standardization depends on the next generation of professionals. As standardization is key to international trade, training and empowering the next generation of professionals is critical to the continued development of standards and conformity assessment. Therefore, enhanced cooperation among APEC economies is essential. SCSC will enhance cooperation among APEC economies by fostering standards experts exchange and research on joint training programs and sharing of best practices in standards and conformity training curricula and programs at the APEC level. Digital transformation of standard certification systems As the digital economy continues to expand rapidly, digital transformation, alignment and harmonization of standards and conformity procedures are becoming increasingly important. Therefore, it is necessary to strengthen cooperation on digital standards certification systems among SCSC member economies and share best practices to facilitate trade. SCSC will focus on sharing best practices in digital conformity assessment, expanding Mutual Recognition Agreements (MRAs), and exploring the impact of digital transformation on standard and conformity assessment procedures. Considering the linkage with the WTO TBT and SPS agreements, efforts should focus on facilitating trade in the digital era by exploring how digital standards and certification procedures can be used in international trade. Sustainable energy and standards cooperation Finally, there is standard cooperation in the field of sustainable energy. As energy security and climate change response have emerged as critical issues globally, it is important to strengthen cooperation on standards and conformity assessment for renewable energy and low carbon. Cooperation among member economies is essential for advancing the transition to sustainable energy. Key initiatives could include aligning standards for renewable energy and emerging technologies, sharing best practices in applying international energy efficiency standards, expanding cooperation on carbon reduction technologies and clean energy certification, and conducting research on energy standards within APEC. In addition, we expect to share global initiatives and collaborate with international standardization organizations such as ISO, IEC, and related organizations to discuss standardization measures and technologies for sustainable energy. As we set our sights on 2025, the SCSC invites stakeholders from all sectors—government, industry, and academia—to contribute to these important discussions. Your input and participation will shape the future of standards and conformance in the Asia-Pacific region. Let’s work together to build a sustainable, connected, and innovative tomorrow. *** Dr Byung Goo Kang is the Chair of APEC Sub-Committee on Standards and Conformance. APEC Growth Holds Steady Amid Uncertainty, Calls for Structural Reforms Issued by the APEC Policy Support Unit Gyeongju, Republic of Korea, 9 March 2025 Economic growth in the APEC region remains stable in the short term, yet medium-term prospects face mounting risks as trade restrictions, fiscal pressures and geopolitical uncertainties continue to evolve, according to the latest APEC Regional Trends Analysis. The report projects GDP growth of 3.3 percent in 2025, following an estimated 3.5 percent expansion in 2024, though a further slowdown to 2.7 percent is anticipated in the coming years. Structural challenges, including demographic shifts and rising trade barriers, are expected to weigh on future economic trajectory. “The region's growth trajectory reflects both resilience and vulnerability,” said Carlos Kuriyama, Director of the APEC Policy Support Unit. “While we are seeing steady economic activity, sustained growth will require proactive reforms, particularly in trade policy and fiscal management.” Trade performance in the region has shown modest recovery, with merchandise trade in the first nine months of 2024 increasing by 3 to 4 percent in 2024, reversing the sharp contraction seen in 2023 on a year-on-year basis. However, the number of trade remedies surged to 1,043 by the end of 2024, up from 960 in 2023, highlighting ongoing worries on unfair trade practices. Moderating inflation trends, on the other hand, offer a measure of relief, with rates easing to 2.6 percent in 2024, compared to 3.8 percent in 2023. This has provided central banks with greater policy flexibility. However, increasing trade restrictions and geopolitical risks could reintroduce price pressures, potentially limiting interest rate adjustments. “While inflation has moderated, risks remain,” said Rhea C. Hernando, an analyst with the Policy Support Unit. “Ongoing global risks, rising protectionism, and shifts in trade policy could complicate efforts to maintain price stability in the months ahead.” The region’s fiscal position remains fragile, as sustained government expenditures continue to outpace stagnant revenue collection, which has hovered around 28 to 29 percent of GDP for over two decades. Without fiscal adjustments, rising public debt levels could strain economic resilience. Meanwhile, global financial volatility has driven investors toward safe-haven assets, pushing gold prices to record highs. Escalating economic and geopolitical uncertainties, reflected in the sharp rise in policy uncertainty indices since 2020, have fueled increased hedging. "Macroeconomic stability hinges on careful fiscal planning," said Glacer Niño A. Vasquez, a researcher with the Policy Support Unit. "Governments need to strike a balance—ensuring fiscal prudence while enhancing investments in infrastructure, digital transformation, and human capital to boost productivity and growth." The report underscores the urgent need for structural reforms to sustain long-term economic momentum. Flexible and coordinated monetary and fiscal policies will be necessary to control inflation while preserving growth potential. Deeper regional cooperation will be essential to foster open trade and investment while addressing shared challenges. Productivity-enhancing reforms that promote innovation, technological adoption, and workforce skills development will also be critical to securing APEC’s long-term economic future. “As global uncertainties persist, APEC economies must reinforce trade openness, strengthen policy coordination, and pursue long-term reforms,” Kuriyama concluded. “A forward-looking approach will be crucial in fostering a resilient and sustainable regional economy.” For more information on the APEC Regional Trends Analysis, March 2025, visit this page.   For further details and media inquiries, please contact:   media@apec.org  som_media@apec2025.kr Senior Officials Chart Policy Agenda on Economic and Technical Cooperation Issued by the SOM Steering Committee on Economic and Technical Cooperation Gyeongju, Republic of Korea, 8 March 2025 In a city where tradition and innovation converge, senior officials from across the Asia-Pacific gathered in Gyeongju with representatives from specialized technical working groups and policy partnerships—each focusing on areas such as energy, telecommunications, and skills development—to discuss the year ahead. Their collaborative work aims to advance growth and prosperity across all member economies and is a key part of Korea's forward-looking 2025 host year theme, “Building a Sustainable Tomorrow.” “Our agenda for economic and technical cooperation in 2025 is not merely about addressing today’s issues; it’s about laying a solid foundation for the Asia-Pacific of tomorrow,” remarked Cheng Lie, Chair of the APEC SOM Steering Committee on Economic and Technical Cooperation (SCE). “We must harness digital transformation, foster sustainable practices, and drive economic integration to build a future that is both resilient and inclusive,” Cheng Lie added, emphasizing that the region’s long-term prosperity hinges on innovative policy solutions that bridge current challenges with future opportunities. Central to the committee’s work is bolstering capacity building across key economic drivers—trade and investment; innovation and digitalization; and sustainable, inclusive growth—with a focus on areas such as artificial intelligence (AI), digitalization, and demographic shifts in the region. By leveraging emerging technologies, the SCE's working groups and policy partnerships aim to accelerate public service delivery and promote a competitive digital economy across the region, envisioning a digital ecosystem that empowers governments, businesses, and citizens alike. Environmental sustainability also took center stage, with discussions highlighting the need to integrate green policies into the broader economic agenda. The SCE will continue to lead on the annual Bio-Circular-Green Award, an initiative that recognizes distinguished individuals implementing sustainable approaches. Senior officials stressed the importance of collaboration, underscoring that a coordinated approach is essential to overcome the challenges posed by rapid globalization and technological change. The outcomes of this meeting will serve as critical input for subsequent APEC discussions, reinforcing the region’s resolve to navigate global challenges with cohesive and forward-looking economic cooperation.   For further details and media inquiries, please contact:   media@apec.org  som_media@apec2025.kr Steering the APEC Region Through Unprecedented Global Challenges in a New Era By Rhea Crisologo Hernando, Glacer Niño A. Vasquez and Carlos Kuriyama     APEC faces slowing growth and rising fiscal pressures, with medium-term prospects dampened by trade barriers, geopolitical issues and structural constraints. Strengthening resilience through bold reforms and deeper regional cooperation remains essential for growth and stability. While short-term economic perspectives in the APEC region appear steady, the medium-term outlook is less promising, requiring strategic action to tackle mounting challenges. Headwinds are putting increasing pressure on the global economy, with rising geopolitical tensions, persistent trade barriers, and sustainability issues. APEC economies must act swiftly to prevent a scenario of economic distress. APEC’s growth prospects: A mixed outlook APEC’s economic expansion is on a stable but cautious trajectory. The region’s GDP is estimated to have grown by 3.5 percent in 2024, with a projected moderation to 3.3 percent in 2025. However, in the medium term, growth is expected to slow further to 2.7 percent, trailing the global economy’s 3.0 percent pace. This slowdown reflects the confluence of multiple risks—from structural issues like the reality of an ageing population to heightening trade restrictions and geopolitical tensions. Tourism and trade: Bright spots amid fragile conditions Tourism has emerged as a bright spot, driving growth in commercial services trade and fostering stronger economic and cultural ties. However, the broader trade landscape remains uncertain. While merchandise trade rebounded in the first three quarters of 2024, growing 3-4 percent after a sharp contraction last year, measures affecting trade continue to rise. APEC economies enforced 1,043 trade remedies as of December 2024—up from 960 in 2023—largely consisting of countervailing and anti-dumping measures, posing risks to fragile trade gains. The simultaneous increase in trade-facilitating measures although at a much slower pace, underscores the region’s struggle to balance open trade with protectionist pressures. Rising risks: Fiscal pressures and macroeconomic stability Inflation relief has offered a silver lining, with rates trending downward to 2.6 percent in 2024 from 3.8 percent in 2023. This decline has provided central banks room to adjust monetary policies, supporting economic activity. Nevertheless, an increase in trade-restrictive measures may exert upward pressure on prices in the medium term, thereby reducing the likelihood of interest rate cuts. Furthermore, fiscal challenges loom large and immediate. The widening fiscal gap, driven largely by sustained high government spending, threatens to push public debt to unsustainable levels even as revenue collection has remained stagnant at 28-29 percent of GDP for over two decades. Without fiscal consolidation, debt risks could undermine long-term stability. Global uncertainty fuels demand for safe havens Rising global risks have spurred gold prices to record highs as investors seek safety in uncertain times. Indices measuring economic policy uncertainty have surged between 2020 and 2024, compared to the previous decade, while geopolitical risk indices have similarly escalated. Issues affecting sustainability are adding another layer of economic vulnerability as well. Charting a sustainable path forward Navigating these complex challenges requires a well-crafted, multi-pronged approach: Prudent and sound monetary & fiscal policies: Gradual, flexible monetary policies should support growth while safeguarding against inflation. Meanwhile, fiscal consolidation is essential to rebuilding buffers and ensuring debt sustainability. Multilateral cooperation to facilitate trade and investment: Strengthening APEC’s role as a regional economic forum will be key in addressing concerns on trade and investment issues and fostering policy dialogue on key reforms to bolster regional resilience and achieve sustainable growth. Structural reforms to improve productivity and competitiveness: Reforms should focus on enhancing productivity and fostering innovation and entrepreneurship by removing barriers to competition. There are many ways that these could be achieved, considering the fact that APEC economies are on divergent phases of economic and technological development. It would be beneficial to harness technological innovations to improve efficiency and connectivity while minimizing operational costs. Investing in human capital by improving access to quality education and healthcare should also be in the agenda, as well as streamlining labor markets to encourage greater workforce participation and invest in skills upgrading. These reforms will be crucial to securing APEC’s long-term economic future. APEC stands at a pivotal moment, facing a convergence of global and regional challenges. By implementing well-crafted policies and forward-looking reforms, the region can navigate uncertainties and build a more resilient, sustainable economic future. *** Rhea Crisologo Hernando is analyst, Glacer Niño A. Vasquez is researcher, and Carlos Kuriyama is director at the APEC Policy Support Unit. 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