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Next APEC Summit in Singapore

Prime Minister Lee said Singapore would advance the regional economic agenda by working on trade liberalization, simplifying regulations.

Leadership of APEC was handed over to Singapore on Sunday at the end of a summit which put out strong statements on free trade and the economic crisis.

In taking over the reins for 2009, Singapore said it would focus on regional economic integration as it built on the good work already done.

At the final session with 20 fellow heads-of-government, Singapore Prime Minister Lee Hsien Loong spelt out what the country planned to do as chair of the Asia-Pacific Economic Cooperation (APEC).

He told them that Singapore would advance the regional economic agenda by working on trade liberalization, simplifying regulations to make it easier to do business within APEC economies and improving transport and logistic networks between countries.

He described them as issues 'on the border', 'behind the border'' and 'across the border'.

The week-long meetings here had focused mainly on the current economic crisis, and ways to support the Group of 20's action plan cobbled together last weekend in Washington to battle the downturn.

Mr. Lee told Singapore media that while arguments and remedies were not taken further, the APEC summit provided leaders with an opportunity to exchange views on how each country was tackling the crisis.

No country was in 'panic mode'' as the financial crisis had stabilized somewhat, he said, but there was a clear realization that some contingency measures had to be in place if things took a turn for the worse.

He said it was 'significant'' that leaders were on the same page when it came to rejecting protectionism and committing themselves to resuming the Doha trade talks as it was not too long ago that trade liberalization was not as warmly embraced.

On Saturday, APEC leaders issued a standalone statement on the global economy, pledging among other things, not to raise new trade and investment barriers for the next 12 months.

It also said the economic crisis could be over in 18 months, what Mr Lee yesterday described as 'aspirational'' target rather than a prediction.

The leaders' intention was to signal to their populations that the crisis can be overcome or, as Mr. Lee put it, 'we will pull through.''

Support for an Asia Pacific-wide free trade zone, was also prominent in the joint declaration from leaders released at the end of the summit.

No one should expect a dramatic signing ceremony for an FTA among 21 countries, given the varied economies and 'political considerations which might complicate economic calculations'', said Mr. Lee.

But interesting steps had already been taken to move the process along, he added, pointing to the enlargement of the so-called P4 group of Pacific Rim economies committed to removing trade barriers.

What started as a nucleus comprising Singapore, Chile, Brunei and New Zealand now have three countries signing up for it, including the United States, making it a 'significant'' grouping.

One or two others were also interested in joining the pact, he said.

One advantage of starting small is that higher bar on trade liberalization can be achieved, unlike multilateral trade negotiations which will have to factor in the interests of many countries.

The rest can be grafted on, hopefully, without 'watering down'' the quality of the pact, which among other things, pledges to eliminate all tariffs in 12 years, with tariffs on 90 per cent of all trade in goods erased immediately.

APEC's 20th anniversary in 2009 is expected to be a busy time for Singapore given the Peruvians' experience. They logged 129 meetings in the run-up to the summit.
Mr. Lee left Lima right after the summit on Sunday for Sao Paolo in Brazil where he will address business leaders.

News source: The Straits Times

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