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APEC Project Database

Project Title

Policy Dialogue on A.I. in Trade Context for Enhanced Cooperation within APEC

Project Year

2024

Project Number

DESG_203_2024A

Project Session

Session 2

Project Type

Standard

Project Status

Project in Implementation

Project No.

DESG_203_2024A

Project Title

*
Policy Dialogue on A.I. in Trade Context for Enhanced Cooperation within APEC

Project Status

Project in Implementation

Fund Account

*
APEC Support Fund

Sub-fund

ASF: Digital Innovation

Project Year

2024

Project Session

*
Session 2

APEC Funding

110,499

Co-funding Amount

109,660

Total Project Value

220,159

Sponsoring Forum

*
Digital Economy Steering Group (DESG)

Topics

Digital Economy; Digital Technology and Innovation

Committee

Committee on Trade and Investment (CTI)

Other Fora Involved

Committee on Trade and Investment (CTI)

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

Korea

Co-Sponsoring Economies

Australia; Chile; Japan; Malaysia; Peru; Philippines; Chinese Taipei

Expected Start Date

01/05/2025

Expected Completion Date

30/06/2026

Project Proponent Name 1

Jae Woo Park

Job Title 1

Deputy Director

Organization 1

Ministry of Trade, Industry and Energy

Telephone 1

+82-44-203-5933

Email 1

Project Proponent Name 2

Jehoon LEE

Job Title 2

Assistant Director

Organization 2

Ministry of Trade, Industry and Energy

Telephone 2

+821075159128

Email 2

mc0123@korea; krdoli13@korea.k

Declaration

Jae Woo Park

Project Summary

AI is a cross-cutting technology that is poised to impact economic activities, including international trade. The impacts of AI technology can be shaped by regulatory and public policy measures. Against this backdrop, multilateral fora and individual economies have been working to establish frameworks for the governance of AI, with the aim of enhancing the positive impacts of AI while mitigating the negative ones.

APEC, as an incubator of new ideas, should address the emerging issue of AI and make meaningful contributions on ways to enhance economic cooperation within APEC. This project is designed to provide APEC economies the opportunity to share knowledge and views on AI technology, especially in the trade context. This project would provide the building blocks for further cooperation within APEC to understand and to share the benefits and risks of this emerging technology and to foster its safe, secure and trustworthy development.

Relevance

Benefits

Artificial Intelligence (AI) is transforming the global trade landscape, presenting both opportunities and challenges for APEC economies. To harness the opportunities of AI as growth engine, carefully designed policy and institutional frameworks should guide AI design and use. Multilateral efforts are already underway, such as the OECD AI Principles, G20 AI Principles, several UN Resolutions on AI, that may provide a useful reference points. At the same time, economies are developing policy, legislation and regulation, that focuses on realizing the benefits and managing the adverse effects of AI technologies and facilitating the safe, secure, and trustworthy development and use of AI.

Against this backdrop, upbringing its unique stance as the incubator of ideas, APEC has carried out projects on AI across various fora, including the 2023 Digital Month that allowed stakeholder engagement and discussions on artificial intelligence (noted in 2023 AMM statement). Further, the Ministers Responsible for Trade in May encouraged that APEC economies to seek innovative, inclusive, interconnected and sustainable growth by continuing to exchange views and contribute to the relevant ongoing international discussions on AI as appropriate. Now, APEC needs to deepen its analysis and derive possible elements that would be essential for the formation of suggestions that helps to utilize AI to promote trade within the APEC region. This project will unfold dialogues on AI within trade context, and how APEC economies can cooperate and exchange practices and views of using AI tools to facilitate trade. As there is a growing need to build capacity to understand AI technologies in the trade context, this project will cover such cases as sharing policies and best practices of AI into government trade policy.

Eligibility and Fund Priorities

This project aims to apply for APEC Support Fund (ASF) – Digital Innovation. It meets the eligibility criteria and funding priorities by:

1. Contributing to achieving key focus areas of AIDER

2. Including capacity building programs that aims to

– enhance understanding on AI technology and find creative ideas on its application

-  narrow digital divide by sharing best practices engage in various stakeholders from academia, entrepreneurs, and policy makers

Capacity Building

This project will feature a workshop (public-private dialogue) aimed at enhancing the understanding of how AI can be employed to enhance trade. The workshop seeks to upskilling policy makers, entrepreneurs, and other stakeholders across APEC economies. Speakers from various APEC economies will share their policies on AI technology and their efforts to harness AI in practices to facilitate trade. As an example, Korea will share updates on its AI technology status, including initiatives like the "Digital Bill of Rights" and its legislation process related to AI regulations as related to trade policy. Additionally, the workshop will aim to bridge the knowledge gap on AI and trade among stakeholders and provide assistance to developing economies by sharing best practices. 

Private sector speakers will also play a crucial role in this dialogue, offering insights into their experiences and challenges related to AI implementation in trade. By incorporating diverse perspectives, this project aims to promote inclusive and sustainable policy measures within the region. The outcomes of the workshop will be compiled into a summary report, serving as a white paper that collects APEC economies' actions to support use of AI tools to support trade.

Objectives

The aim of this dialogue is to discuss areas of economic cooperation in order to facilitate positive impact of AI for facilitating global trade. The stakeholder engagement workshop (public- private dialogue) will contribute to a better understanding of how AI technologies can facilitate trade and share best practices for cooperation within APEC.

Alignment

APEC
This project is directly connected to Putrajaya Vision in all three drivers, but mainly with the “Innovation and Digitalization” driver. In a sense that this project aims to 
improve interconnectedness of the global economy and facilitate digital transformation. 

This project also aligns with the APEC 2024 priorities of “Trade and Investment for Inclusive Growth”, “Innovation and Digitalization to Promote the Transition to the Formal and Global economy”, and “Sustainable Growth for Resilient Development”, by carrying out discussions on the emerging technology of AI that has become an important tool for driving innovation, promoting sustainable economic growth, and transforming various aspects of daily life across our economies as noted in the MRT meeting statement of 2024. 

Further we should note that, AI can contribute to the AIDER. APEC leaders affirmed their dedication to fostering digital trade, pledging to work together to realize the potential of internet and digital economy and welcomed the adoption of the APEC Internet and Digital Economy Roadmap (AIDER) in 2017. This project will provide a hint of idea on the holistic policy frameworks and cooperation of regulatory approaches which affects the Internet and Digital Economy as pinpointed out in the AIDER. 

Also, ABAC recommended to the Leader’s in 2023 as the following: “The emergence of generative Artificial Intelligence necessitates a proactive, concerted, and collaborative policy response that takes into account responsible and ethical development and governance, workforce impacts, and the enabling environment that will unlock its full economic potential. APEC and ABAC can make a meaningful contribution to this effort.”

Forum

The DESG aims to facilitate the development of the internet and digital economy, including e-commerce and digital trade. DESG is the forum to implement the Leader’s pledge in 2017, that stated “to together to realize the potential of the internet and digital economy and welcomed the adoption of the APEC Internet and Digital Economy Roadmap (AIDER)”. 

This project aims to contribute to key focus areas of AIDER particularly on:

4. Development of holistic government policy frameworks for the Internet and Digital Economy;

5. Promoting coherence and cooperation of regulatory approaches affecting the Internet and Digital Economy;

6. Promoting innovation and adoption of enabling technologies and services;

7. Enhancing trust and security in the use of ICTs; and

8. Facilitating the free flow of information and data for the development of the Internet and Digital Economy, while respecting applicable domestic laws and regulations.

Beneficiaries and Outputs

Output

1) Research Paper

The paper will be produced based on self funding. The paper will discuss three key areas related to AI and trade. Please see below the structure of the paper. 

First, the paper will discuss the current AI governance being discussed in APEC economies, multilateral fora, and international organizations. The paper will briefly examine key governance principles including those being discussed by the OECD, the UN, G20, AI Safety Summit, and the WTO. The examination of existing discussions on AI governance principles will allow identifying the areas related to AI and trade where APEC may contribute to. 

Second, the paper will briefly examine the impact of AI on trade. The paper will attempt to identify ways AI can influence international trade, including as a tool for facilitating trade, an incentive to change trade patterns, and a medium to promote the evolution/change of existing trade norms. 

Third, the paper will provide suggestions for APEC to consider on what and how it may contribute to in responding to the interests of APEC economies in the context of AI and trade. These suggestions will consider ongoing discussions in other multilateral fora and assessments of the impact of AI on trade to identify areas where APEC can play a meaningful role. 

The target audience is the APEC economies, and the paper will be disseminated through DESG in the form of a Consolidated Paper, incorporating the Summary Report of the One-day Hybrid Workshop at SOM3/2025. The paper will be a minimum of 30 pages. 

The paper will also assist APEC member economies, especially developing economies by providing insights into AI governance frameworks and trade implications. It will serve as a reference to help economies navigate the evolving AI and trade landscape and opportunities for collaboration within APEC. 

The findings and recommendations will be structured to facilitate discussions among APEC economies, encouraging dialogue and cooperation on AI and trade-related matters.

2) One-Day Hybrid Workshop at SOM3 2025

One day workshop with at least 6 featured speakers with an understanding of AI in trade, including upskill policy makers, entrepreneurs, and other stakeholders within the APEC economy. 

The workshop aims to enhance the understanding of AI’s role in trade among policymakers, entrepreneurs, and stakeholders within APEC economies. The workshop will provide valuable insights into the opportunities and challenges AI presents in global trade. Through the workshop, best practices in incorporating AI into government policies will be shared, enabling policy makers to adapt these insights to formulate effective policies and cultivate a thriving AI-driven government ecosystem. 

The interactive panel discussion will further encourage idea-sharing on AI- related trade issues, fostering collaboration among APEC economies.

Stakeholders such as entrepreneurs, AI-firms, also including policy makers and regulators, seeking to optimize AI utilization across APEC member economies will benefit from this knowledge exchange. 

The workshop is expected to include three sessions and a panel discussion. The draft theme of the three sessions are: (i) the role of AI technology in trade facilitation, (ii) cooperation on AI standards within APEC economies, and (iii) understanding the diversity in AI governance frameworks and its challenges. The draft theme of the panel discussion is idea-sharing on trade issues related to AI goods and services and how to address them. 

The workshop will be held in hybrid format. To maximize capacity building outcomes for both virtual and in-person participants, the consolidate activities suited for online participants into the first or second half of the day (subject to consideration of differences in time zones), with the rest of the day reserved for in-person activities. The one-day hybrid workshop will be planned as a full day event. 

We will conduct a survey prior to the workshop to reflect economies' interest, especially that of the co-sponsors, and will design the Workshop to suit its primary focus as the information sharing, capacity building and building sense of foundation for cooperation.

Summary Report

A Summary Report will be prepared to cover the summaries of key presentations, panel discussions, best practices, and recommendations discussed at the One-day Hybrid Workshop at SOM3/2025. The Summary Report will be structured to cover each session and panel discussion in separate sections, with each section including a summary of the key issues and discussions. Please refer to the description of the One-day Hybrid Workshop at SOM3/2025 above for the topics for each session and panel discussion. 

The Summary Report is intended to be combined with the Research Paper and published as a Consolidated Report. 

The Consolidated Report will serve as a valuable reference document. The Research Paper part will provide insights into AI governance frameworks and trade implications. It will serve as a reference to help economies navigate the evolving AI and trade landscape and opportunities for collaboration within APEC. The Summary Report part will capture key insights, discussions, best practices, and recommendations from the One- day Hybrid Workshop at SOM3/2025. By structuring the report into dedicated sections for each session and panel discussion, it will provide a clear and organized account of the workshop’s key takeaways, enabling policymakers, entrepreneurs, and stakeholders to revisit and apply the knowledge shared. 

The Consolidated Report will enhance the overall impact of APEC’s work on AI and trade by examining expert perspectives, policy considerations, and cooperative opportunities. This will support ongoing and future policy development efforts within APEC economies, especially by assisting developing economies in navigating AI-related trade challenges and fostering greater regional collaboration on AI governance and standards.

Outcome

1) Examine existing policies and initiatives, and update participants on the present dynamics surrounding AI in global trade. We will explore how AI could impact trade policies and what actions economies could consider to enhance the positive impacts of AI while mitigating the negative ones in the trade context.

2) Examine the connection between AI policies to facilitate trade and their impact on regional trade and investment flows, which ultimately affects economic cooperation. This will demonstrate the relationship between AI policies and trade. Furthermore, this will also serve as the supporting evidence that coherent and cooperative AI policies could unlock further economic potential.

3) Provide new directions for APEC on what it can do as the most dynamic and flexible economic forum to respond to the critical interests of economies. The project recognizes the need to build capacity to understand AI technologies in trade context and further to foster regional cooperation that will allow discussing coherent and cooperative approaches to AI policies.

Beneficiaries

Primary beneficiaries of this project are policy makers and regulators involved in digital economy with respect to trade and investment. The project's outcomes aim to enhance their understanding of the challenges and opportunities brought about by the AI in the trade context. 

Secondary beneficiaries of this project are non-member government officials engaged in issues related to AI and trade, non-participating researchers undertaking AI governance projects, and international organizations dedicated to dealing AI. By offering insights into AI-related discussions via the Consolidated Report, the project will serve as a valuable reference point for further discussions and practical applications. 

International organizations are encouraged to contribute as experts in panel discussions, potentially leveraging these conversations to inform and enrich their ongoing initiatives.

Dissemination

A publication comprising the Summary Report will be made available online through the APEC publications page. The Hybrid Workshop on AI in trade will be streamed online to registered participants to engage a wider range of stakeholders, including regulators, industry associations, businesses, academics and representatives from relevant international organizations.

Gender

Please see Project Proposal in Supporting Documents folder.

Work Plan

Please see Project Proposal in Supporting Documents folder.

Risks

Please see Project Proposal in Supporting Documents folder.

Monitoring and Evaluation

Please see Project Proposal in Supporting Documents folder.

Linkages

This project, related to trade and investment, aligns closely with the Committee on Trade and Investment (CTI) within APEC. Referencing the Putrajaya Vision 2040, the study on AI norms is expected to enhance regional connectivity, streamline trade and investment processes, and open up new opportunities. 

Moreover, in collaboration with the APEC Business Advisory Council (ABAC), which initially sparked the project through its report and recommendations, this project aims to contribute to seeking a proactive, concerted, and collaborative policy response that takes into account responsible and ethical development and governance, workforce impacts, and the enabling environment that will unlock its full economic potential. It is noteworthy that the project's early focus on trade and investment policy underscores its significance within the APEC context.

Sustainability

To ensure the continued impact of the project after the APEC funding concludes, several follow-up initiatives and support mechanisms can be implemented. Firstly, a follow-up project could be designed to test the feasibility and practicality of the proposed concerted actions among APEC economies. This would involve pilot implementations and detailed case studies to validate the effectiveness of these actions in real-world scenarios. Secondly, the possibility of developing APEC guidance on best practices related AI in trade could be continuously assessed. This would enable a robust framework for formulating and cultivating effective AI policies.

Thirdly, regular networking events could be organized to foster ongoing cooperation among governments, academia, multilateral organizations, and businesses. These events would serve as platforms for knowledge exchange, collaboration, and the dissemination of best practices, thereby strengthening the collective capacity to address common challenges. The objectives of this project address critical, contemporary issues that necessitate sustained attention, policy innovation, and coordinated international efforts. To build on the project's outputs and outcomes, a structured plan for future actions should be established. This plan could include setting up working groups or task forces dedicated to specific aspects of the project, such as policy development, or capacity building. In addition, regular reporting and evaluation mechanisms should be put in place to track progress and measure the impact of these activities. Progress on the outcomes can be measured through a combination of quantitative and qualitative metrics. Quantitative metrics might include the number of new policies adopted or the frequency and quality of international collaborations. Qualitative metrics could involve stakeholder feedback, case studies, and impact assessments.

Direct Labour

Not Applicable.

Are there any supporting document attached?

Yes
Project No.
Project Title
Project Status
Fund Account
Sub-fund
Project Year
Project Session
APEC Funding
Co-funding Amount
Total Project Value
Sponsoring Forum
Topics
Committee
Other Fora Involved
Other Non-APEC Stakeholders Involved
Proposing Economy(ies)
Co-Sponsoring Economies
Expected Start Date
Expected Completion Date
Project Proponent Name 1
Job Title 1
Organization 1
Telephone 1
Email 1
Project Proponent Name 2
Job Title 2
Organization 2
Telephone 2
Email 2
Declaration
Project Summary
Relevance
Objectives
Alignment
Beneficiaries and Outputs
Dissemination
Gender
Work Plan
Risks
Monitoring and Evaluation
Linkages
Sustainability
Direct Labour
Are there any supporting document attached?
hdFldAdmin
Project Number
Previous Fora
Secretariat Comments
Reprogramming Notes
Consolidated QAF
Endorsement By Fora
PD Sign Off
Batch
Forum Priority
Committee Ranking Category
Committee Priority
PDM Priority
Priority Within Funding Category
Monitoring Report Received
Completion Report Received
PMU Field 1
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On Behalf Of
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Attachments
Content Type: Standard Proposal