APEC to go full steam with globalisation, dump protectionism

The APEC ministerial meeting in Lima, Peru has called on its leaders to seize the opportunity in responding to the global economic crisis to chart a course that will set all APEC economies on a path of recovery and renewed growth and development.

Ministers of trade and foreign affairs from 21 APEC economies gathered to make recommendations to leaders amid what are widely considered the most difficult economic circumstances since the creation of APEC in 1989.

"Our commitment," said the group in a statement, "is to strengthen regional cooperation through APEC to address the challenging financial and economic outlook, continue to promote trade and investment liberalisation and facilitation, support structural economic reforms, improve human security, and ensure that all members of our economies have the training and opportunities to benefit from globalisation."

In response to the global financial crisis, APEC economies have stated their intent to oppose protectionism. They have also recommended that leaders agree not to raise current levels of applied import tariffs during the crisis.

In response to the high cost of food, ministers agreed to review and update the APEC food system to be considered by ministers responsible for trade in 2009. They also recognised that export restrictions may ''prolong and deepen the severity of food price escalation by putting further pressure on global food prices and discouraging agricultural investment needed to increase future production."

Ministers reiterated their belief that a resolution of the Doha Round of WTO negotiations is even more urgent as a result of the global financial crisis. A strong agreement would demonstrate the ability of the international community to work together to strengthen the global economy.

Progress toward regional economic integration was reported, outlining the degree of implementation achieved in 53 specific action areas.

Corporate social responsibility (CSR) has been a main theme at APEC this year. According to the ministers, both private and public organisations have a responsibility to protect and promote the well-being of all those who may be affected by business operations. It was specifically recommended that leaders promote CSR in the region.

The APEC Business Advisory Council said the economies must resist potential reactionary measures of protectionism and draconian regulation. The APEC council has called for new policies and programmes to rebuild confidence.

The council also called for positive actions, including fiscal responses to invigorate demand through appropriate spending on public works, and tax incentives; continued measures to ensure a smooth, orderly process of adjustment in financial markets; trade liberalisation in the global and regional market; and measures to alleviate the difficulties faced by small and medium sized enterprises, and to sustain and promote employment and stability in this vital sector of our societies.

The APEC council endorsed and supported the proposals set out in the G-20 declaration of 15 November for the implementation of reforms of financial systems.

It views the strong G-20 commitment to an open global economy as fully consistent with the APEC vision and calls on APEC Leaders to throw their weight behind steps to resolve the outstanding issues in the Doha Round of trade negotiations.

It strongly supports also the undertaking by G-20 leaders to refrain from raising new barriers to investment or to trade in goods and services, imposing new export restrictions, or implementing World Trade Organisation (WTO) inconsistent measures to stimulate exports.

The council asked APEC leaders to match commitment and consider establishing a process for monitoring and reporting on its implementation.

Accelerated measures to deepen trans-Pacific regional integration in an open and non-discriminatory way would also rebuild confidence among business in the APEC region, the council said and called for a move towards a free trade area of Asia-Pacific.

The council held its earlier session in Hangzhou, China, in August.

The forum also discussed support to small and nedium enterprises in the light of the gloabal slowdown. Many SMEs are being hard hit by the fallout from the global economic crisis. The councils submitted proposals for a special program for SMEs covering technological infrastructure, financing capacity building, and training.

Other issues considered at the meeting included trade and investment facilitation measures, labour mobility, food security, corporate social responsibility, energy security, ICT-enabled growth and intellectual property rights protection. Work on these and new projects will be continued in 2009 under the chairmanship of ABAC Singapore.

Recommendations of the council will be considered by leaders for adoption at the APEC summit on 22 - 23 November.