APEC sees innovation and openness as the region’s next growth engine

APEC’s executive director says the forum is acting as an incubator for cooperation as the region heads toward the 2026 leaders’ meeting in Shenzhen. The priorities have shifted over 25 years, but he says openness, digital tools and services-sector cooperation remain central to Asia-Pacific growth.

Why it matters: - APEC’s agenda is broadening as the region faces slower trade growth, faster technological change and uneven development across economies. - The focus is shifting from trade liberalization alone to practical cooperation on digital resilience, artificial intelligence and services. - The region still accounts for around 60% of global GDP, so APEC decisions can influence a large share of world growth.

What happened: - Eduardo Pedrosa, executive director of the APEC Secretariat, described APEC as an “incubator” for cooperation in an exclusive interview with Southern Finance one month before the 2026 APEC Economic Leaders’ Meeting. - China’s 2026 APEC year will culminate in Shenzhen under the theme “Building an Asia-Pacific Community to Prosper Together.” - Pedrosa pointed to earlier APEC themes in Shanghai in 2001 and Beijing in 2014 as examples of how the forum’s priorities have evolved over time.

The details: - The 2001 APEC Economic Leaders’ Meeting in Shanghai focused on “Meeting New Challenges in the New Century: Achieving Common Prosperity through Participation and Cooperation.” - The 2014 Beijing meeting used the theme “Shaping the Future through Asia-Pacific Partnership.” - Pedrosa said APEC’s core function is to facilitate cooperation, not make rules. - Pedrosa said the Asia-Pacific region has sustained growth for more than 35 years because economies share a commitment to open markets. - Pedrosa said future cooperation should help small and medium-sized enterprises become more resilient through digital technologies. - Pedrosa said economies should look for cooperation opportunities across the artificial intelligence value chain. - Pedrosa said the services sector can generate new growth if economies strengthen its competitiveness. - Pedrosa said services are now deeply integrated into manufacturing, making the sector a key area for regional cooperation. - Pedrosa highlighted progress in connectivity, an artificial intelligence initiative and a new roadmap for services during China’s APEC year. - Pedrosa said the rise of the middle-income population will create more diverse trade opportunities. - Pedrosa said economies must balance innovation with regulation and energy sustainability with security of supply.

Between the lines: - APEC is trying to stay relevant by moving beyond classic trade talks and toward the policy problems shaping the next phase of growth. - The emphasis on AI, services and SMEs suggests the forum is seeking practical areas where members with different development levels can cooperate without waiting for a full rules-based agreement. - The focus on balance — innovation vs. regulation and sustainability vs. supply security — reflects the tension many Asia-Pacific economies now face.

What's next: - The 2026 APEC Economic Leaders’ Meeting in Shenzhen will test whether member economies can turn broad cooperation goals into concrete regional initiatives. - APEC members are likely to keep expanding work on digital resilience, AI cooperation and services-sector competitiveness. - The Asia-Pacific’s growth outlook will increasingly depend on whether openness can be paired with innovation and policy coordination.