Prime Minister Anthony Albanese will fly in the face of incoming US President Donald Trump's anti-free trade rhetoric, urging governments and business leaders to work closer together amid unprecedented global economic challenges.

Mr Albanese will make the comments, in which he will be strident in the need for free and fair global trade, when he attends a business reception Australians are hosting ahead of the two-day APEC summit in Lima, Peru.

The leaders who are meeting in Lima, and then again for G20 in Brazil early next week, are closely watching Mr Trump's formation of a cabinet for his second term in power.

While he won't be in attendance at either meeting, Mr Trump is casting a long shadow over the global talks, having pledged to impose tariffs on goods imported into the US. He has also vowed to withdraw from global climate targets.

Speaking to around 140 people, including senior representatives of some of Australia's biggest miners, Mr Albanese will make the case that trade supports one in four Australian jobs and there are opportunities to grow ties in the mining and agricultural sectors throughout Latin America.

"All of us here tonight need no reminding of the unprecedented challenges the global economy has faced over the past few years," he will say.

"Australia has weathered the storm better than most, and is poised to take advantage of stronger conditions."

This is Mr Albanese's first trip to South America as prime minister. He'll meet with Indonesia's new president Prabowo Subianto on Thursday and hopes to speak with China's leader Xi Jinping alongside the G20 meeting in Rio de Janeiro early next week.

The White House has confirmed Mr Xi and Mr Biden will meet in Lima at the weekend. Mr Albanese is not expected to hold formal talks with Mr Biden, having recently visited the US president last month.

As Mr Albanese touched down in Peru, Opposition Leader Peter Dutton cast doubt on Kevin Rudd's ability to remain Australia's ambassador to the United States.

After Mr Trump's election, Mr Rudd deleted a series of old tweets, in which he was scathing of the incoming Republican president. A close ally of Mr Trump this week suggested Mr Rudd was on borrowed time. But senior Australian government ministers, and Mr Albanese, have continued to offer their support for him.

Economists have forecasted there could be a blow to global growth if Mr Trump follows through on his pledge to impose a 60 per cent import tariff on goods coming from China.

Treasury has conceded that would have implications for Australia's economy but the prime minister hopes middle powers like his government can use their relationships with the US and China to prevent a global trade war.

The APEC and G20 conferences are also being closely watched to see how global leaders might seek to ringfence efforts to cut global emissions despite Mr Trump's pledge to withdraw from the Paris climate accords.

Speaking at a global climate conference in Azerbaijan, UK Prime Minister Keir Starmer committed his government to cut emissions by 81 per cent by 2035, insisting it could be achieved without "telling people how to live their lives".

Speaking when he arrived in Peru, Mr Albanese too didn't shy away from his plans to cut Australia's emissions.

"This is important for our environment, but it also represents economic opportunity with the transition that's there," he said.

"Australia is particularly well positioned because of what we have under the earth, with rare earths and all the critical minerals that will be vital for the transition, but also important because of the resources we have in the sky. We have the best solar resources in the world."