President Park Geun-hye on Thursday urged leaders participating in a regional summit to encourage small and medium-sized enterprises to become more vibrant players in the global market as part of efforts to promote inclusive growth in the Asia-Pacific region.
On the second day of the Asia-Pacific Economic Cooperation summit held in Manila, Park also suggested SMEs join global value chains where the different stages of production are located across numerous countries. She proposed revitalizing the service industry that already accounts for two-thirds of the region’s combined gross domestic product.
The annual summit brought together leaders of the 21 member states, which account for nearly 60 percent of global gross domestic product and almost half of world trade.
Park also exchanged views with APEC leaders on ways to maximize the benefits produced by the regional economic bloc amid focus shifting to a new, Washington-led regional trade bloc.
The Trans-Pacific Partnership is a free trade pact signed by 12 Pacific Rim economies including Japan, but neither South Korea nor China.
Experts have raised concerns that the APEC will face challenges by the TPP as the new trade deal goal resembles the regional pact launched in 1989 to promote free trade. Non-TPP members could be excluded from benefits expected from the new trade deal, they said.
The rivalry between Beijing and Washington was palpable as TPP members celebrated their new trade pact on the sidelines of the APEC summit with U.S. President Obama attending, while Chinese President Xi Jinping urged creating alternatives including the Free Trade Area of the Asia-Pacific and the Regional Comprehensive Economic Partnership.
Park was seen playing both cards, as she said at the summit that South Korea plans to actively participate in the new trade blocs led by Beijing ― a remark that came after she expressed her keen interest in the TPP.
“I expect the region to secure inclusive growth and open regionalism in the course of various economic integration process,” she said.
During her trip to Washington last month, Park said the TPP will bring benefits for South Korean businesses, amid widespread criticism of the country’s hesitance to participate in the U.S.-led trade bloc.
Also taking center stage at the APEC summit were last week’s Paris terror attacks and the members’ pledge to fight against terrorism.
The leaders wrapped up their summit later in the day adopting a joint statement that included a condemnation of Islamic State, the terrorist group that claimed responsibility for the deadly attacks.
On the sidelines of the APEC summit, Park also met with her Peruvian counterpart Ollanta Humala to discuss ways to expand bilateral cooperation.
Park told Humala that the South Korean government has been making efforts to intensify the bilateral ties by implementing agreements reached during a summit held in Peru in April.
Under a 2012 deal, sole Korean aircraft manufacturer Korea Aerospace Industries is helping Peru assemble 16 turboprop planes called KT-1P for the Peruvian Air Force. Separately, KAI has already built and delivered four trainers to Peru.
Humala said he expects to have more Korean businesses participating in Peru’s infrastructure building projects.
Park was sitting next to Japanese Prime Minister Shinzo Abe during the first session of the APEC summit and stood next to him for a group photo. The two had held their first-ever summit in Seoul earlier this month.
Meanwhile, Abe and his wife sat next to U.S. President Obama during a banquet held on Wednesday while Park sat next to Russian Prime Minister Dmitry Medvedev, drawing media attention for illustrating the closer ties between Japan and the U.S.
By Cho Chung-un, news reports (
christory@heraldcorp.com)
