Scott Morrison has declared Australia will push back against the rising tide of trade protectionism as world leaders gather in Port Moresby for the Apec summit.

After his first meetings as prime minister with the Chinese premier, Li Keqiang, and the American vice-president, Mike Pence, in Singapore this week, Morrison will use a speech to the Apec Business Advisory Council summit on Saturday to underscore Australia’s commitment to open markets. China and the US have been locked in an escalating trade war since July.

“The test for us now is to stand up for the economic values we believe in, and show how they work by improving living standards and lifting millions of people out of poverty,” Morrison will tell business observers at Apec on Saturday.

He will say it is critical to show people in Apec economies and nations around the world “what happens when you are open and work in partnership – that you create jobs, you build prosperity and you create a more stable and secure region”.

Morrison will recognise there is a political backlash against trade deals and acknowledge there are “legitimate questions” around trade arrangements.

“But the solution to perceived unfair trade practices is more likely to be found around the negotiating table than it is in rebuilding a tariff wall,” he will say. “The solution isn’t throwing up protectionist barriers. Tit-for-tat protectionism and threats of trade wars are in no one’s interests economically, and undermine the authority of the global and regional trading rules that benefit us all.”

Morrison will say political leaders need to return to the task of “persuading and convincing our peoples again about the domestic benefits” of trade liberalisation.

The speech from the Australian prime minister is implicitly critical of the trade war between America and China, and the protectionism of the Trump administration – although there have been signs Beijing and Washington may use the looming G20 summit at the end of November to de-escalate, and try and iron out differences.

Morrison’s speech in Port Moresby follows the unveiling on Friday of new joint investment commitments with Japan to fund infrastructure in the Pacific.

The Australian prime minister and his Japanese counterpart, Shinzō Abe, during a whistlestop visit to Darwin ahead of Apec, also signed off on an agreement between the CSIRO and the Japan, Oil, Gas and Metals National Corporation to increase cooperation and encourage joint research activities in support of hydrogen production.

Morrison’s first foray into summit season as prime minister has been overshadowed by a rolling diplomatic row about Australia moving its embassy in Israel.

The controversy began with a public warning from the Indonesian trade minister that Jakarta would not sign off on a free-trade deal with Canberra if the embassy move proceeded. That was followed by a suggestion from the Malaysian prime minister Mahathir Mohamad that relocating the embassy from Tel Aviv to Jerusalem would add to the cause of terrorism.

Mahathir’s comments triggered strong pushback by Australian ministers on Friday. The deputy Liberal leader, Josh Frydenberg, accused Mahathir of having form in making “derogatory comments” about Jews in the past, including calling them “hook-nosed”, questioning the number of people killed in the Holocaust and banning the Holocaust film Schindler’s List.

Government conservatives lined up to declare Australia would make its own foreign policy decisions as a sovereign nation. Morrison said this week a final decision on the embassy relocation will be made by Christmas.