As APEC leaders gather in Gyeongju, headlines may focus on high-profile meetings, but the deeper story is how economies continue to cooperate in an uncertain world.
Trade has anchored Asia-Pacific growth for decades, and technology is reshaping it today. Yet as leaders gather in Korea later this week for the APEC Economic Leaders' Week, it is trust that will determine whether that growth remains steady, inclusive and sustainable.
The meeting takes place amid renewed uncertainty in global trade. Changing policy directions among major economies are reshaping trade patterns and creating new pressures across strategic sectors. Across the region, supply chains are being rewired and investment redirected in the name of resilience. The risk is that the very interdependence that powered the Asia-Pacific's prosperity could now be turned into a source of vulnerability.
Beyond headlines and handshakes
Headlines will focus on high-level encounters and the theatre of geopolitics. But beneath the surface, thousands of policymakers and technical experts have been at work for months to ensure that cooperation continues where it matters most: in trade facilitation, digital connectivity and sustainable growth. This quiet effort, sometimes overlooked, is how APEC has endured for 36 years, even as the global environment has shifted dramatically.
The Asia-Pacific is still growing, but the pace has slowed. APEC's GDP is projected to expand by around 3 percent this year, down from 3.6 percent in 2024. Trade-restrictive measures have multiplied and confidence in institutions has weakened. Yet in this environment, APEC's value lies in providing a platform where economies can continue to cooperate, not by avoiding differences, but by managing them pragmatically.
That cooperation does not begin when leaders meet. It starts months earlier, through the APEC process that brings together senior officials, ministers and experts across over 60 working groups. Their work may not dominate headlines, but it shapes the frameworks that influence policy across the region, from aligning border procedures and technical standards to supporting services trade, digital connectivity and the low-carbon transition.
Behind every framework and initiative are the region's workers, entrepreneurs and small businesses. They depend on predictable rules, efficient logistics and transparent digital systems to trade, innovate and grow, the very areas where APEC cooperation makes a difference.
Korea's focus: navigating demographic and digital change
The Republic of Korea, as host of APEC 2025, has placed two issues at the heart of this year's agenda: demographic change and artificial intelligence. While these may seem quite far off from APEC's bread and butter of trade and investment, but in reality, they address the underlying question raised by today's fractured interdependence: how can economies stay connected and competitive while remaining resilient and fair?
The proposed APEC Collaborative Framework on Demographic Change, now under discussion, acknowledges that aging populations are already reshaping labour markets, healthcare systems and fiscal sustainability. How can the region sustain growth if its working-age population has slowed to near zero and is projected to turn negative by 2035?
As the region's populations age, the sources of growth must evolve. Artificial intelligence offers one of the most powerful tools to offset demographic decline, enhancing productivity, improving services and opening new frontiers of innovation. Yet it also brings profound challenges in energy demand, sustainability and trust.
According to the International Energy Agency, global electricity consumption by data centres, much of it driven by AI, is projected to more than double by 2030, reaching about 950 terawatt-hours, roughly equivalent to Japan's current annual electricity use. AI-enabled systems are also increasingly being used to automate decisions, amplify targeted content and generate misinformation. The question for policymakers is not only how to foster innovation, but how to do so sustainably and responsibly, keeping AI's energy footprint manageable, its outputs trustworthy and its use aligned with shared values.
It is precisely these questions that the Korea's proposed APEC AI Initiative seeks to address, by building trust in artificial intelligence through transparency, accountability and inclusivity.
These proposals will come into sharper focus in Gyeongju this week, where economies will deliberate on both issues, translating shared priorities into practical cooperation that ensures growth benefits all our people in this region.
The quiet work that sustains cooperation
APEC's strength lies in its process. Because it is non-binding, members are free to test ideas, adapt them and adopt what works, a model often described as "concerted unilateralism." This approach has led to tangible results over the years: tariff reductions on environmental goods, streamlined customs procedures, pandemic response coordination and progress on digital standards that underpin modern trade.
That model of cooperation, the soft power, is more relevant than ever. The region is no longer debating whether interdependence is good or bad; it is learning how to manage it. Cooperation in areas such as data governance, supply-chain resilience and inclusive digital transformation shows that APEC remains a laboratory where economies can experiment, build trust and align policies even without binding agreements. It is also fitting that this year's host is the Republic of Korea, whose own soft power, from K-Pop to K-Drama, has become a global byword for connection. Among Koreans officials, there is even a saying this year: K-Pop, K-Drama, K-APEC.
Trust as the true infrastructure of growth
Technology will continue to transform industries, but trust, in data, in governance, and in one another, will define whether that transformation strengthens or fractures the region. Trust cannot be negotiated; it must be earned, built gradually through transparency and dialogue.
As APEC leaders meet in Gyeongju, the world will again watch for signs of rapprochement or renewed isolation. Yet the deeper story lies in the work that connects the dots between officials, ministers and, ultimately, leaders - the steady process of building common ground in an increasingly divided world.
If the Asia-Pacific is to remain the engine of global growth, it will not be through trade or technology alone. It will be through trust, the quiet infrastructure that makes cooperation possible when everything else feels uncertain.
Eduardo Pedrosa is the Executive Director of the APEC Secretariat. He is an expert on regional economic cooperation working on diverse range of issues including trade, finance, digitalization, climate change and structural reform.
