APEC Leaders Divided on Ukraine, Gaza Wars, Back WTO Reform

US President Joe Biden, South Korea's President Yoon Suk Yeol, Japan's Prime Minister Fumio Kishida, Indonesian President Joko Widodo, Singapore Prime Minister Lee Hsien Loong, Vietnam President Vo Van Thuong and Philippines' President Bongbong Marcos take part in a family photo during an Indo-Pacific Economic Framework event at the Asia-Pacific Economic Cooperation (APEC) summit in San Francisco, California, US, November 16, 2023. (Reuters)
US President Joe Biden, South Korea's President Yoon Suk Yeol, Japan's Prime Minister Fumio Kishida, Indonesian President Joko Widodo, Singapore Prime Minister Lee Hsien Loong, Vietnam President Vo Van Thuong and Philippines' President Bongbong Marcos take part in a family photo during an Indo-Pacific Economic Framework event at the Asia-Pacific Economic Cooperation (APEC) summit in San Francisco, California, US, November 16, 2023. (Reuters)
TT

APEC Leaders Divided on Ukraine, Gaza Wars, Back WTO Reform

US President Joe Biden, South Korea's President Yoon Suk Yeol, Japan's Prime Minister Fumio Kishida, Indonesian President Joko Widodo, Singapore Prime Minister Lee Hsien Loong, Vietnam President Vo Van Thuong and Philippines' President Bongbong Marcos take part in a family photo during an Indo-Pacific Economic Framework event at the Asia-Pacific Economic Cooperation (APEC) summit in San Francisco, California, US, November 16, 2023. (Reuters)
US President Joe Biden, South Korea's President Yoon Suk Yeol, Japan's Prime Minister Fumio Kishida, Indonesian President Joko Widodo, Singapore Prime Minister Lee Hsien Loong, Vietnam President Vo Van Thuong and Philippines' President Bongbong Marcos take part in a family photo during an Indo-Pacific Economic Framework event at the Asia-Pacific Economic Cooperation (APEC) summit in San Francisco, California, US, November 16, 2023. (Reuters)

Pacific Rim leaders showed divisions over the wars in Ukraine and Gaza after a two-day summit of the Asia-Pacific Economic Cooperation (APEC) forum on Friday, although they pledged support for reform of the World Trade Organization.

Days of meetings involving APEC ministers and leaders were dominated by a summit on Wednesday between US President Joe Biden and Chinese President Xi Jinping aimed at cooling tensions between the world's two largest economies, which have alarmed the region.

The 21 APEC members, which include Russia and Muslim-majority Indonesia and Malaysia, went into the meetings divided over Russia's war in Ukraine and the Hamas-Israel war in Gaza, and that is how they left them.

A statement issued by this year's APEC chair, the United States, echoed last year's APEC leaders' declaration in saying that "most" APEC members "strongly condemn aggression against Ukraine."

It said the leaders exchanged views on the Gaza crisis, with some objecting to language of the chair's statement in an accompanying "Golden Gate Declaration" covering economic issues "on the basis that they do not believe that APEC is a forum to discuss geopolitical issues."

Some APEC leaders shared the united messages of the Nov. 11 joint Arab-Islamic summit in Riyadh, the chair's statement said.

Brunei, Indonesia and Malaysia in a joint statement said they were among the APEC leaders who supported the messages of the Riyadh summit, which had called for an immediate end to military operations in Gaza, rejecting Israel's justification of its actions against Palestinians as self-defense.

The three countries also called for an "immediate, durable and sustained" humanitarian truce, and for the unhindered provision of essential goods and services to civilians in Gaza.

‘Free, open, fair investment environment’

The APEC leaders' declaration reaffirmed their determination "to deliver a free, open, fair, non-discriminatory, transparent, inclusive, and predictable trade and investment environment."

"We are committed to necessary reform of the WTO to improve all of its functions, including conducting discussions with a view to having a fully and well-functioning dispute settlement system accessible to all members by 2024," it said.

Despite the frictions over the Ukraine and Middle East wars, the Sino-US talks will have brought some relief to APEC members concerned by a worsening trajectory in the rivalry between the superpowers, which are also the world's largest economies.

The Biden-Xi summit brought agreements to resume military-to-military communications and work to curb fentanyl production, showing some tangible progress in the first face-to-face talks in a year between the two, but no major reset in their strategic rivalry.

Xi appeared to achieve his aims, earning US concessions in exchange for promises of cooperation, an easing of bilateral tensions that will allow more focus on economic growth, and a chance to woo foreign investors who increasingly shun China.

Biden, addressing the other APEC leaders on Friday, urged them to work together to ensure that artificial intelligence brings change for the better, rather than abusing workers or limiting potential.

The US-China signal

Biden used the APEC summit to highlight the strong US economy and its ties to other Pacific nations, even as his vision for greater regional cooperation to counter China's influence stumbled on the trade front over his bid to strengthen workers' rights.

The managing director of the International Monetary Fund, Kristalina Georgieva, told Reuters the Biden-Xi meeting was a badly needed signal that the world needs to cooperate more and a positive sign for cooperation on global challenges, especially climate change.

Much US-China tension is linked to democratically governed Taiwan, which China claims at its own, and the issue has raised fears of a conflict between the superpowers.

Taiwan's APEC envoy, semiconductor magnate Morris Chang, told a news conference on Friday he believed the Biden-Xi summit had been a "good meeting."

He said he had informal interactions with Biden, US Vice President Kamala Harris and US Secretary of State Antony Blinken on the sidelines of APEC, but not with Xi.

As it competes with China for influence, Biden's administration has vowed to continue negotiating an ambitious Asia trade deal as part of the Indo-Pacific Economic Framework it created as a forum for engagement after then-President Donald Trump quit a regional trade pact in 2017.

However, election-year pressures and resistance to tough commitments from some countries make a deal unlikely, trade experts and business groups say.



Saudi Aramco Announces Completion of $6 Billion Bond Issuance

FILE PHOTO: The Saudi Aramco logo is pictured at Hyvolution exhibition in Paris, France, February 1, 2024. REUTERS/Benoit Tessier/File Photo
FILE PHOTO: The Saudi Aramco logo is pictured at Hyvolution exhibition in Paris, France, February 1, 2024. REUTERS/Benoit Tessier/File Photo
TT

Saudi Aramco Announces Completion of $6 Billion Bond Issuance

FILE PHOTO: The Saudi Aramco logo is pictured at Hyvolution exhibition in Paris, France, February 1, 2024. REUTERS/Benoit Tessier/File Photo
FILE PHOTO: The Saudi Aramco logo is pictured at Hyvolution exhibition in Paris, France, February 1, 2024. REUTERS/Benoit Tessier/File Photo

Saudi Aramco announced on Thursday that it has completed a bond issuance of $6 billion.

The issuance is comprised of three tranches of USD-denominated senior unsecured notes under Aramco’s Global Medium Term Note Program (GMTN), Aramco said in a statement.

According to the statement, the tranches include $2 billion senior notes maturing in 2034 with a coupon rate of 5.250%, $2 billion senior notes maturing in 2054 with a coupon rate of 5.750%, and $2 billion senior notes maturing in 2064 with a coupon rate of 5.875%.

The transaction, said the statement, was priced on July 10, and the notes are listed on the London Stock Exchange.

The offering was more than six times oversubscribed, based on the initial targeted size of $5 billion.

The transaction received strong demand from a diverse base of investment-grade focused institutional investors. All three tranches were favorably priced with a negative new issue premium, reflecting Aramco’s strong credit profile.

“We are pleased with the strong interest and level of engagement from investors globally, both existing and new,” said Executive Vice President of Finance & CFO Ziad Al-Murshed.

“Our order book exceeded $33 billion at its peak, reflecting Aramco’s exceptional financial resilience and fortress balance sheet. Achieving a negative issue premium across all tranches is a testament to our unique credit proposition,” he said.

“We have consistently demonstrated our financial discipline while delivering on shareholder value and business growth, and we aim to maintain a strong investment-grade credit rating across business cycles,” Al-Murshed added.