The APEC Business Advisory Council (ABAC) has urged Asia-Pacific governments to take immediate and coordinated action to address mounting economic pressures, including trade fragmentation, energy market shocks, and persistent supply chain disruptions, warning that business confidence across the region is under severe strain.

In a statement issued after its second meeting for 2026 in Mexico City from April 22 to 25, ABAC said the global trade and investment environment is under acute stress and requires bold policy moves to restore confidence, resilience, and long-term prosperity across the Asia-Pacific.

ABAC members cited severe shocks to energy markets, rising trade and investment restrictions, intensifying environmental challenges, threats to food security, slowing growth projections in several Asia-Pacific Economic Cooperation (APEC) economies, inflationary pressures, and continued uncertainty in global trade governance.

“We are at a critical inflection point,” ABAC chair Li Fanrong said.

“Business confidence is being tested by uncertainty on multiple fronts, from trade fragmentation to supply chain disruptions. What we need now is decisive, collective action to restore predictability and stability, and set a clear path toward sustainable growth,” Li added.

ABAC said the risks to jobs, living standards, and long-term prosperity are particularly high for micro and small enterprises, women entrepreneurs, and vulnerable communities.

As an immediate step, the council called on APEC trade ministers to consider a standstill on new trade restrictions to reduce uncertainty and prevent further cost escalation for businesses operating across borders.

ABAC also outlined priority actions aimed at restoring growth momentum and strengthening regional economic cooperation.

These include accelerating progress toward the Free Trade Area of the Asia-Pacific (FTAAP) through practical short-term deliverables and convergence in trade rules, as well as strengthening connectivity and supply chain resilience by addressing vulnerabilities, ensuring responsible mineral sourcing, facilitating legitimate trade, and enhancing transparency and sustainability.

The business council also urged governments to invest more in trade and logistics infrastructure and reduce barriers to maritime and air transport, including improving regional and secondary-city connectivity to support mobility, trade, and investment.

ABAC also pushed for greater market diversification by improving access to market intelligence, trade tools, and capacity-building programs, particularly for micro, small, and medium enterprises (MSMEs) seeking to enter new markets.

In the food sector, the group called for addressing non-tariff barriers by applying APEC principles on non-tariff measures (NTMs) and promoting science-based, transparent regulations to reduce compliance burdens and strengthen food security.

The council also emphasized digital trade and transformation, calling for a permanent ban on tariffs for digital products, universal paperless trade through the new APEC center of excellence for paperless trade, interoperable regulations, responsible artificial intelligence (AI), stronger anti-online fraud measures, and better governance and literacy for quantum technology.

ABAC likewise called for stronger women’s economic empowerment by removing structural barriers, advancing equal pay, increasing leadership opportunities, and strengthening the care economy.

The council said it will formally convey these recommendations to Ministers Responsible for Trade (MRT) during their meeting in May and separately send recommendations to the women and the economy forum.

To reinforce its proposals, ABAC also released a statement on FTAAP urging faster progress in priority trade areas, and a statement on connectivity calling for renewed commitment to APEC’s connectivity blueprint and its next phase.

“ABAC’s role is to ensure that the voice of business remains central to APEC’s work,” Li said.

“We will continue to work with leaders and ministers to ensure that policy keeps pace with the realities businesses are facing on the ground,” he added.

The recommendations align with ABAC’s 2026 theme of “Openness, Synergy, Connectivity.”

“Openness, synergy and connectivity are not abstract concepts, they are practical imperatives,” Li said.

“Open markets drive growth, connectivity strengthens resilience and synergy ensures that our collective efforts deliver outcomes greater than the sum of their parts,” he added.

The Mexico City meeting also included high-level exchanges with government officials, APEC representatives, and the local business community.

Mexico’s undersecretary of foreign trade Luis Rosendo Gutierrez delivered the keynote address, while side events on digital trade policy and the role of the business community were held as Mexico prepares to host APEC in 2028.

China Council for the Promotion of International Trade (CCPIT) and APEC CEO Summit chair Ren Hongbin also briefed participants on preparations for the APEC CEO Summit 2026, one of the region’s premier business events.

ABAC’s next meeting will be held in Bangkok, Thailand, where it will refine its recommendations for presentation to APEC leaders.