World leaders issue warning to Trump on trade, but not by name

Lima: Prime Minister Anthony Albanese has joined Asia-Pacific leaders in warning against new trade barriers that could slash economic growth and sacrifice jobs, in a signal to US President-elect Donald Trump to rethink his plan to force up the price of imports.

The political leaders ended a regional summit in Peru with a sharp message about the need for fair and open trade. Chinese President Xi Jinping denounced the prospect of “back-pedalling” on globalisation.

Prime Minister Anthony Albanese during the APEC Economic Leaders’ Retreat meeting, in Lima, Peru, on Saturday.Credit: Alex Ellinghausen

But the Chinese president said he would strive towards a “smooth transition” to the new US administration when Trump takes office in January, in a comment during a meeting with US President Joe Biden that eased fears of conflict between the world’s largest economic and military powers.

“China is ready to work with the new US administration to maintain communications, expand co-operation and manage differences,” Xi said in his opening remarks to Biden in their third face-to-face meeting in three years.

Australian officials hope to secure a meeting between Albanese and Xi within days, as they walk a diplomatic tightrope to tighten economic ties with China while cementing the security alliance with the US. Albanese spoke with Xi during a social event before a gala dinner at the Lima summit, smoothing the way for a formal meeting at the G20 summit in Rio de Janeiro.

Albanese arrived in Rio on Saturday night, local time, after leaving the APEC gathering in Lima, where the Trump economic agenda clouded talks on how to lower inflation and lift growth.

In a move that sets the scene for the G20 talks in coming days, the APEC leaders said in a statement that trade must be free, open, fair, non-discriminatory, transparent and predictable.

With Biden due to step down on January 20, the final photograph at the Lima summit signalled a shift in global power as the Chinese president took a central position on the podium while his American counterpart arrived late and stood at the edge of the group.

As experts said higher tariffs would lead to higher prices and stronger global inflation, the International Monetary Fund told the APEC leaders they must tighten their budgets to avoid wasteful spending and reform their economies to boost growth.

IMF managing director Kristalina Georgieva told the Lima meeting that global inflation was retreating without the economy slipping into recession, but she said many households were not feeling this good news.

“Inflation may be falling but the higher prices people feel in their wallets are here to stay,” she said.

A dispute over the wars in Gaza and Ukraine broke the consensus at the Lima summit after countries including Australia tried to air their concerns about the conflicts, only to be blocked by Russia and China.

Albanese supported the two wars being addressed at the APEC gathering, but the host of the meeting, Peruvian President Dina Boluarte, admitted the failure to reach an agreement.

“In the context of the 31st APEC Economic Leaders’ Meeting that took place in Lima, some economies expressed their views on Russia and Ukraine and the situation in Gaza,” Boluarte said in a chair’s statement at the end of the summit.

“Some economies considered that these issues have an impact on the global economy and could be treated in APEC, while other economies do not believe that APEC is a forum to discuss these issues.”

Boluarte’s statement did not elaborate on the reasons for the impasse and did not say where each of the 21 members stood on the two wars. But the dispute repeats the troubles seen at the APEC summit last year when Muslim-majority members Brunei, Indonesia and Malaysia called for an immediate truce and an end to hostilities in Gaza.

Russian President Vladimir Putin did not attend this year’s gathering in the Peruvian capital of Lima and was represented by Deputy Prime Minister Alexey Overchuk.

Albanese raised the Gaza and Ukraine wars during the talks, while officials negotiated outside the leaders’ final session to prepare the final statements. As with last year, the officials understood that Russia and China could veto any mention of Ukraine in the final declaration.

Biden, speaking in response to Xi at their Lima meeting, said he was “very proud” of the progress between the US and China.

“These conversations prevent miscalculations and they ensure the competition between our two countries will not veer into conflict,” the US leader said.

US President Joe Biden and Chinese President Xi Jinping before their bilateral meeting.Credit: AP

Early cabinet appointments by Trump including China hawks Marco Rubio as secretary of state and Mike Waltz as national security adviser suggest he is readying for an adversarial stance toward Beijing.

Leaders at the summit did not name Trump in their talks, according to sources who spoke on condition of anonymity, but many of their concerns about tariffs were directed at the incoming US administration.

“We acknowledge the importance of, and will continue to work to deliver a free, open, fair, non-discriminatory, transparent, inclusive and predictable trade,” the leaders’ final declaration said.

Albanese backed the statement on free trade, confirming a longstanding position at APEC against trade barriers, but he denied it was aimed explicitly at Trump.

“It is squarely aimed at one thing, and that is Australia’s national interests. We are a trading nation and I support free and fair trade. One in four Australian jobs depends on trade,” he said on ABC TV’s Insiders on Sunday.

with Bloomberg

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