APEC leaders pledge new vision for economic growth (Roundup)

Nov 15, 2009, 5:36 GMT

   Singapore - Leaders of the 21-nation Asia Pacific Economic Cooperation (APEC) on Sunday pledged a new paradigm of growth and rejected protectionism at their two-day summit in Singapore.

   'The global economy has begun to recover, with the Asia-Pacific region taking the lead,' said Singapore Prime Minister Lee Hsien Loong, reading a joint statement by the leaders.

   'We cannot go back to growth as usual,' the statement said, 'we need a fresh model of integration.'

   The APEC leaders urged to conclude the Doha trade talks in 2010 and said they rejected 'all forms of protectionism.'

   Free trade and open markets were the key to growth in the region, said Lee.

   To ensure a durable recovery that would create jobs and benefit the people, the statement said, APEC 'will pursue growth which is balanced, inclusive and sustainable.'

   'We will design social safety nets that provide short term support but avoid long-term dependency,' the statement added.

   Belatedly joined by US President Barack Obama, who arrived for the summit late Saturday night, the 21 leaders met in a 'retreat' forum, discussing, the need for a shift in global demand in the wake of the ongoing global economic crisis, which started in the US.

   'For decades, the United States has been a major consumer of goods from this region,' Obama said.

   'What can fuel that prosperity is a strategy where the United States consumes less and exports more. This won't just lead to more balanced growth, it has the potential to create millions of new, well-paying jobs,' he said.

   'For example, if we can increase our exports to APEC countries by just 5 per cent, we can increase the number of US jobs supported by exports by hundreds of thousands,' Obama said.

   The APEC summit, the last such meeting of world leaders before the Climate Change summit to be held in Copenhagen next month, failed to deliver a clear and positive message on the crucial issue.

   In their statement, the leaders reaffirmed their 'commitment to tackle the threat of climate change and work towards an ambitious outcome in Copenhagen,' noting that the efforts must be consistent with international trade obligations of their economies.

   On the sidelines of the summit, Danish Prime Minister Lars Lokke Rasmussen flew in for a breakfast Sunday with 19 of the APEC leaders to announce the unlikelihood for a breakthrough to Copenhagen.

   'There was an assessment by the leaders that it is unrealistic to expect that a full internationally, legally binding agreement could be negotiated between now and Copenhagen, which starts in 22 days,' US Deputy National Security Advisor Michael Froman told reporters after the breakfast meeting.

   APEC is home to more than 2.7 billion people and represents about 54 per cent of the global gross domestic product and 44 per cent of world trade.

   The forum groups 21 countries in East Asia and the Americas, including economic heavyweights such as the US, Mexico, Canada, China, Japan, South Korea and the seven largest economies of South-east Asia.

   The Singapore summit marked APEC's 20th anniversary. Next year, Japan is set to take over the chairmanship of APEC, followed by the US in 2011.

   The 2011 summit will be held in his home state Hawaii, Obama announced, adding that he was looking forward to seeing all APEC leaders decked out in flowered shirts and grass skirts.

   A group photo with all leaders wearing an attire chosen by the host economy is the highlight of every APEC summit.

   Obama had flown in from Tokyo, where he acknowledged that the US 'has been disengaged' in recent years from regional organizations that promote security and prosperity in Asia, a reference to his predecessor George W Bush's rejection of international organizations.

   Obama also announced US readiness to engage in the little-known free trade deal as an initial step towards molding a region-wide trade agreement with the Asia-Pacific.

   The Trans-Pacific Strategic Economic Partnership Agreement (TPP) was set up in 2005 between Brunei, Chile, New Zealand and Singapore, and some hope it will be used as model for a region-wide trade pact for the Asia-Pacific.

   Washington's willingness to join the TPP may prove an important gesture that the US is serious about re-engaging with the region, which many Asian leaders feel has been ignored.