APEC, created in 1989 with a goal of regional trade liberalization, brings together 21 economies that jointly represent 62 percent of global GDP and over 40 percent of global commerce
APEC, created in 1989 with a goal of regional trade liberalization, brings together 21 economies that jointly represent 62% of global GDP and over 40% of global commerce. AFP

As trade and the potential impact of a future Donald Trump presidency take center stage at the Asia-Pacific Economic Cooperation (APEC) leaders' summit in Peru, Australian Prime Minister Anthony Albanese emphasized his priority would be advancing national interests, with a strong focus on free and fair trade.

"My focus will be on promoting Australia's national interests, which are about free and fair trade," Albanese told reporters on Friday, adding that strengthening Australia's engagement with economic partners in the region would be a priority.

APEC represented 75% of Australia's trade, the prime minister noted. Addressing global inflation required collective action, he said, adding that this would be a key focus of the APEC summit in Lima over the next two days.

After a meeting with Indonesian President Prabowo Subianto when the two leaders discussed the potential global impact of a Trump presidency, Albanese remarked: "Obviously, that's part of the backdrop of APEC and the G20, which is what the impact of a change in US administration will have," AAP reported.

During his election campaign, Trump had proposed tariffs ranging from 10% to 60% on Chinese imports to the U.S.

When asked whether Australia viewed growing Chinese investment throughout South America with caution or openness, the prime minister acknowledged that Beijing's role as an economic power was undeniable. He also noted that the rising population in countries like China, Indonesia, India, and other nations in the region would be a key driver of future economic growth.

Albanese highlighted that Australia's vast reserves of critical minerals, such as copper, vanadium, cobalt, and lithium -- essential for renewable technologies like electric vehicle batteries -- position the country to benefit from the global shift toward clean energy.

"We have all of the resources under the ground that will drive the global economy in the 21st century. We have a great opportunity to produce green hydrogen through use of the renewables," Reuters quoted Albanese as saying.

Albanese also noted that any changes in U.S. climate policy under the Trump administration could further bolster Australia's efforts to attract investment in its critical minerals and green energy sectors.

Trump had promised to roll back President Joe Biden's climate legislation, the Inflation Reduction Act, which allocated billions of dollars in subsidies for clean energy. While Australia viewed climate action as a significant economic opportunity, the prime minister stated that his government was not preempting any potential changes.

"There are potential benefits if there are changes in U.S. policy. We'll wait and see what occurs. The Inflation Reduction Act, for example, has seen considerable capital flow to the United States. If those incentives aren't there, then that has implications for the nature of the global economy," he said.

Agriculture Minister Julie Collins, who was part of the Prime Minister's delegation in Lima, said Australia was using global platforms to advocate for free trade and stressing on role of the World Trade Organization in upholding a rules-based system, AAP reported.

Regarding potential U.S. tariffs under a Trump administration, she highlighted that Australia had been focusing on trade diversification, especially after the $20 billion disruptions in agriculture as a result of the trade conflicts with China.

Albanese also hosted a reception for 120 members of the Australian community, including representatives from major mining and agriculture companies.