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APEC Leaders Say No to Protectionism

Leaders who oversee half the world's economy pledged Saturday to avoid protectionism but shied away from any new proposals on the financial crisis because of somebody who wasn't there: U.S. President-elect Barack Obama.

The 21 leaders endorsed last weekend's agreement by major world economies to resist domestic pressures to protect industries, while ensuring that small and medium-sized companies have enough credit to stay afloat.

"We strongly support the Washington Declaration and will refrain within the next 12 months from raising new barriers to investment or to trade in goods and services (and from) imposing new export restrictions," leaders of the Asia-Pacific Economic Cooperation forum said in a joint declaration.

They also pledged to reach agreement next month on the outlines of a World Trade Organization pact that collapsed in July after seven years of negotiations. Concern over the global financial crisis injected new urgency into the so-called Doha round of trade talks.

The leaders called for greater APEC participation in the International Monetary Fund and other multilateral lenders. Japan said last week it was ready to lend up to $100 billion to the IMF, but China has so far resisted entreaties to dig into its $1.9 trillion in reserves.

Delegates said, however, that there was little incentive to propose more concrete action without the support of Obama, who takes office in January and did not send representatives to Lima.

"The next U.S. administration must assume leadership in a very firm manner — not just for Americans but for the whole world," Mexican President Felipe Calderon said in a speech before heading into closed-door meetings that produced the resolution.

Even people who work for the White House's outgoing occupant, George W. Bush, acknowledged that tough issues such as a stalled U.S.-South Korea free-trade agreement would likely have to wait.

"I think the very understandable concern of these foreign governments is, will the new administration do some sort of policy review," Dennis Wilder, senior director for Asian affairs at the National Security Council, told reporters.

Obama has said one area he wants to review is the U.S. free-trade agreement with Canada and Mexico. But Calderon said any attempt to renegotiate the 15-year-old pact would create "not more markets and more trade, but fewer markets and less trade."

"The day the United States cuts off access to Mexican products, migrants will jump the river, the fence or whatever else they put up. That's a fact," said Calderon, noting that his home state of Michoacan is a major exporter of both avocados and illegal workers to the U.S.

Leader after leader spoke out against protectionism, saying it would bring devastating consequences.

"Companies will go bankrupt and countless jobs will be lost, and poor nations and poor people will suffer the most damage," South Korean President Lee Myung-bak told business executives.

Bush said nations must not respond to the crisis by "imposing regulations that would stifle innovation and choke off growth."

"One of the enduring lessons of the Great Depression is that global protectionism is a path to global economic ruin," he said.

The leaders argued their case with free-trade success stories. Lee, former head of the Hyundai group, said open markets were central to boosting his nation's per-capita annual income from $100 in the 1960s to $20,000 today. Canadian Prime Minister Stephen Harper said the North American Free Trade Agreement has tripled trade and created 40 million jobs.(AP)

News source: Naharnet World News

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APEC Leaders Photographed in Peruvian Ponchos

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Leaders Begin 2nd APEC Summit Retreat to Approve Lima Declaration

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APEC Leaders Commit to Avoiding Trade Barriers for a Year

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Peru: APEC Summit Became "Ideal Scenario" for Trade Deals

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APEC to Support Adequate Financing Measures for Businesses

APEC Economic Leaders announced they will support efforts by export credit agencies, international financial institutions (IFIs) and private banks to ensure that adequate finance is available to businesses, including small and medium-sized enterprises, and to keep trade and investment flowing in the region.

APEC members are taking actions, individually and collectively, to restore confidence in their economies and maintaining the Asia Pacific region on a path of long-term growth.

APEC economies have already taken urgent and extraordinary steps to stabilize their financial sectors and strengthen economic growth as well as promoting investment and consumption.

In this regard, the 21 Asia Pacific heads of state and government issued Saturday afternoon their first joint statement in the framework of the Leaders’ Meeting held in Lima, Peru.

News source: Andina

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Peru Has Clear Commitment with APEC Goals, says Garcia

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Reaching Doha Round Goals is more Important that Beating the Global Financial Crisis

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Peruvian President Welcomes the Leaders of the 21 Asia Pacific Member Economies During a Protocol Ceremony

The first to be arrived was Australia’s Prime Minister Kevin Rudd. Minutes later, Brunei's Sultan Hassanal Bolkiah arrived at the APEC Summit venue located in the Limean district of San Borja.

Then, President García welcomed the leaders of Chile, Michelle Bachelet; Hong Kong, Donald Tsang; Indonesia, Susilo Bambang Yudhoyono; and Canada, Stephen Harper.

After this welcoming ceremony, the 21 APEC leaders are scheduled to meet at the Bolognesi Room of the Ministry of Defense Convention Center, at 1p.m. to participate in the First APEC Leaders' Retreat. 

After a brief recess, at 3:30, the 4th Meeting of APEC Business Advisory Council, (ABAC) will be held with the presence of the 21 Asia Pacific leaders.

News source: Andina

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Bush Sees Difficult Days Ahead

The APEC Leaders' Summit comes at a time of serious turmoil in the global economy. It also comes at a time of unprecedented cooperation, U.S. President George Bush said in his weekly radio address.

A week ago in Washington, Bush hosted the first in what will be a series of international meetings to address the financial crisis.

World leaders reviewed the actions they have taken to manage the crisis. And they agreed on principles and specific actions to modernize their financial structures for the 21st century and help prevent another crisis.

"As we work to rebuild confidence in our financial systems in the short term, we must also work to promote long-term economic growth," Bush said.

"Together, our nations must focus our efforts on three great forces that drive this growth -- free markets, free trade, and free people."

"No region of the world demonstrates the power of these forces more vividly than the Asia Pacific. Free markets have helped millions lift themselves out of poverty."
 
"Free trade has helped small nations turn themselves into global economic powers. And as more people in the Asia Pacific are free to develop their talents and pursue their ambitions, the whole region has grown in prosperity."

News source: Andina

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