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APEC meeting faces challenges over US tariffs and WTO

reforms

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US tariffs threaten Asia-Pacific trade growth, APEC warns

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Greer's attendance raises stakes, prompts high-level

meetings

By Jihoon Lee

SEOGWIPO, South Korea, May 16 (Reuters) - The

Asia-Pacific Economic Cooperation's trade gathering comes to a

close on Friday with divisions over U.S. tariffs and reforms to

the World Trade Organization putting the adoption of a joint

statement in doubt, according to some diplomats.

The annual meeting is the first major multilateral trade

gathering since U.S. President Donald Trump's announcement of

sweeping tariffs that hit more than half of the 21 members of

the bloc with U.S. import duties in excess of the 10% minimum.

APEC warned on Thursday that exports from a region that

accounts for around half of world trade will slow sharply this

year in the wake of the U.S. tariffs.

The sessions typically focus on multilateral cooperation on

economies and trade, and this year contentious reforms to the

WTO are also in the spotlight.

The Trump administration views the WTO as a body that has

enabled China to gain an unfair export advantage and has

recently moved to pause U.S. funding to the institution.

"Big economies in APEC might have strong views on certain

issues," a top diplomat from one of the member economies told

Reuters, expressing scepticism over the adoption of a joint

statement by the close of the two-day meeting.

"But, we never know," the diplomat added. "The chairman

really wants it," the official said, referring to South Korea's

Minister for Trade Cheong In-kyo.

An official from a different country, also expressing doubt

about member economies adopting a joint statement, said

working-level negotiations were ongoing until late into the

night on Thursday.

For many of the member economies, the attendance of U.S.

Trade Representative Jamieson Greer raised the stakes of the

conference held on South Korea's Jeju Island, ahead of a

leaders' summit scheduled later in the year.

On the first day, many, if not all, of the representatives

had or sought a meeting with Greer, according to host country

officials.

"Quite a lot of countries had planned to send deputy

ministers but later decided to send their ministers after

Ambassador Greer's attendance was confirmed," Cheong said.

Greer held talks with China's Vice Commerce Minister Li

Chenggang on Thursday, less than a week after their first

face-to-face talks in Geneva on May 10-11, where they agreed to

significantly lower tariffs for 90 days.

Beijing's commerce ministry spokesperson, He Yongqian, told

a press conference that China was always open to resolving

economic and trade relations with the United States through

offline communication, but gave no details on the latest talks.

Greer also met the host country's Cheong, three weeks after

Seoul and Washington held their opening round of trade talks,

and Malaysian Trade Minister Tengku Zafrul Aziz, who expressed

optimism after Thursday's meeting, his second one in two weeks.

The U.S. trade representative also met South Korean

shipbuilder HD Hyundai's Executive Vice Chairman

Chung Kisun on Friday to discuss cooperation between the

countries in the sector, the company said.

Seoul has offered to collaborate in shipbuilding with

Washington as part of a potential trade deal.

In late February, a Group of 20 meeting of finance ministers

and central bankers held in Cape Town failed to adopt a joint

communique, after top officials from several countries,

including the United States, skipped it.

The meeting concluded with a "chair's summary" issued by the

host, which said participants "reiterated the commitment to

resisting protectionism" and used several words the Trump

administration has strongly objected to.

Cheong is scheduled to hold a briefing on the meeting

outcome on Friday afternoon.