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APEC seeks actions to "restore confidence," maintain growth

Business Materials 23 November 2008 01:44 (UTC +04:00)

The 21 leaders of the Asia-Pacific Economic- Cooperation (APEC) forum meeting Saturday in Lima focused on the need to restore confidence and contain the long-term impact that the global financial crisis is having on the region, dpa reported.

Leaders including US President George W Bush, Chinese leader Hu Jintao and Russian President Dmitry Medvedev issued a statement after the start of their two-day meeting.

The document repeated large portions of the G20 declaration issued last week in Washington, where nine APEC members took part.

Leaders in Lima noted that they discussed "the actions APEC members are taking, individually and collectively, to restore confidence" and to keep the region "on a path of long-term growth."

APEC leaders gave explicit support to the Washington Declaration.

"We strongly support the broad policy response needed to restore global economic growth and stability through: closer macroeconomic cooperation; avoiding negative spillovers; supporting emerging and developing economies; and comprehensively reforming and strengthening the (international finance institutions) to reflect the increasing voice and representation of emerging and developing economies and be more responsive to future challenges."

In their statement as in the comments previously made by leaders, the call for reform was tempered by a warning against protectionism.

"We reiterate our firm belief that free-market principles and open trade and investment regimes will continue to drive global growth, employment and poverty reduction."

APEC leaders noted that "slower world growth could lead to calls for protectionist measures, which would only exacerbate the current economic situation."

In this context, they used exactly the same language contained in the G20 document to announce their concrete decisions.

"(We) will refrain within the next 12 months from raising new barriers to investment or to trade in goods and services, imposing new export restrictions or implementing World Trade Organization (WTO) inconsistent measures in all areas, including those that stimulate exports."

In a slightly different wording, APEC, like the G20, called for "an ambitious and balanced conclusion to the Doha Development Agenda negotiations to provide the basis for our economies to grow and prosper."

"We are committed to reach agreement on modalities next month on the basis of progress made to date," the statement said.

Leaders vowed to pursue "a possible Free Trade Area of the Asia- Pacific as a long-term prospect."

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