US and China Compete at APEC
The United States is actively promoting advanced fisheries and maritime surveillance technology at APEC meetings in southern China. The move reflects ongoing geopolitical competition with Beijing to influence regional trade standards and market access. This dynamic suggests that transparent, digitally documented supply chains will be favored in the Asia-Pacific region.
- The U.S. is leveraging the APEC forum to promote a $20 million fund for American artificial intelligence technologies, framing it as a push for open and transparent systems in contrast to what it terms China's "authoritarian repression". This initiative is paired with the promotion of U.S. private-sector maritime surveillance technologies, such as satellite vessel tracking and AI analytics, to combat illegal fishing. - APEC economies are advancing trade digitalization, with a focus on adopting the electronic bill of lading (eBL) to increase efficiency and reduce costs. This shift towards digital documentation aligns with broader efforts to create more transparent and reliable supply chains throughout the Asia-Pacific region. - India, the world's largest rice exporter, accounting for over 40% of global exports, has significantly impacted global prices by lifting its ban on non-basmati white rice exports. This policy reversal is expected to increase global supply and intensify price competition for Thai and Vietnamese exporters. - Vietnam is strategically shifting its rice export focus from volume to quality, aiming to increase the share of high-quality and fragrant rice to 75% of its exports in 2026. The country plans to reduce total rice exports from 8 million tons to approximately 7 million tons in 2026, targeting more premium markets in the EU and the US. - Thai rice exports for 2026 are projected to be around 7.5 to 8.1 million tonnes, facing intense price competition due to increased global supply. While white rice exports have declined, premium Thai Hom Mali rice shipments have seen an 11% year-on-year increase. - The Asia-Pacific rice market is projected to grow to $391.12 billion in 2026, driven by rising incomes and demand for premium, organic, and specialty rice varieties. This trend presents an opportunity for brands that can meet demands for quality, traceability, and branded packaging. - For European market access, exporters must adhere to strict traceability regulations, ensuring the ability to identify the immediate supplier and consignee ("one step back-one step forward"). EU regulations also set maximum residue levels (MRLs) for pesticides, with increased testing frequencies for basmati rice from India and Pakistan impacting their competitiveness. - The Sustainable Rice Platform (SRP) offers a global standard for sustainable rice cultivation, with over 4,200 smallholder farmers in Thailand already certified. Adherence to SRP standards, which include 46 requirements covering environmental and social criteria, can provide a competitive advantage for exporters targeting sustainability-conscious buyers.
