This report was presented at the Ministers Responsible for Trade Meeting in Surabaya, Indonesia in April 2013. It highlights that there was a sharp deceleration in trade growth as well as a reduction in FDI inflows in 2012, the result of a setback to the global economic recovery that occurred last year. Although the APEC region generally followed the global trends, the impact of these events differed markedly among the APEC members. Despite the relatively strong economic performance of the APEC region in comparison with the rest of the world, there remain substantial downside risks to the region. Given the need to support growth in light of the uneven global economic recovery and ensuing uncertainty, the report cautions APEC members against resorting to restrictive trade and investment measures.