20 November 2008

Financial Crisis to Top U.S. Agenda at Asia-Pacific Meeting

Continued progress toward economic integration key to confronting crisis

 

Bush will seek APEC support for financial reforms proposed by leaders of the Group of 20 countries, seen in this portrait.

Bush will seek APEC support for financial reforms proposed by leaders of the Group of 20 countries, seen in this portrait.

By David McKeeby
Staff Writer

Washington — President Bush will urge leaders at the Asia-Pacific Economic Cooperation (APEC) leaders’ conference to join him in endorsing proposed reform measures formulated by leaders of the Group of 20 (G20) countries to confront the global financial crisis, say top White House officials.

“The G20 represents a certain global consensus,” Deputy National Security Advisor for International Economic Affairs Dan Price told reporters November 19. “As non-G20 members of APEC subscribe to those same principles, it gives them more power and I think enhances the likelihood that we will all succeed in accomplishing those shared goals.”

The ongoing financial crisis will loom large on the agenda when leaders of the 21-member APEC forum meet November 22-23 in Lima, Peru, Price said. Nine leaders from APEC member economies took part in the November 14-15 meeting of 20 of the world’s leading economies in Washington, where countries agreed on an action plan to reform the global financial architecture and contain the crisis. (See “Snapshot: Financial Summit Outlines Growth Agenda, Reform.”)

The Asia-Pacific region is a vital and growing economic partner for the United States, Price said, noting that APEC economies account for nearly half of all world trade and 41 percent of the world’s population. U.S. trade with APEC economies grew from $1.2 trillion in 2001 to nearly $2 trillion in 2007, constituting nearly two-thirds of U.S. trade.

Continuing APEC’s progress toward regional economic integration will be another top U.S. priority, Price said. The body’s goal of creating a free trade area for the Asia-Pacific region by 2012 is rooted in the principles of free trade and open investment, which are also essential to confronting the current crisis, Price said. Trade expansion must not be disrupted by short-term temptations to erect new protectionist trade barriers or close the spigot on business loans — moves that will only exacerbate tightening credit, slumping stock markets and flagging consumer confidence. (See “Asia-Pacific Summit to Focus on Global Economic Recovery.”)

Enhancing APEC’s competitiveness will be a third U.S. priority, Price said. APEC has helped economies across the region, Price said, by building new partnerships to reduce costs among regional businesses; spearheading regulatory reforms to attract new investors; and bringing telecommunications ministers together to bridge the digital divide with a proposal to introduce regionwide universal broadband Internet access by 2015.

The United States will build on these partnerships by seeking APEC member support for a framework for liberalizing trade in industrial and agricultural goods. That could set the stage for eventual completion of the Doha Round of global trade talks, Price said. U.S. Trade Representative Susan Schwab will join Bush at the APEC meeting to seek support among her counterparts for trade liberalization, one of the long-term goals of the Doha Round. 

Other issues on the U.S. agenda include discussions on food security and food safety issues, counterterrorism and disaster response, and energy security and climate change, Price said.

ACTIVE DIPLOMACY ON APEC SUMMIT SIDELINES

While economic challenges are in the spotlight, Bush also plans to meet on the sidelines with leaders from China, Japan, South Korea, Peru and Russia, said White House deputy spokesman Gordon Johndroe, offering a preview of the president’s APEC schedule.

Arriving in Lima on November 21, Bush will meet with Chinese President Hu Jintao for wide-ranging talks as both countries prepare to celebrate the 30th anniversary of their diplomatic relations in 2009. Topics of discussion will include follow-up from the G20 meeting; nuclear proliferation challenges from North Korea and Iran; developments in Burma, Zimbabwe and Sudan; as well as human rights and religious freedoms, including Beijing’s dialogue with the Dalai Lama.

On November 22, Bush will start the day with an address to the APEC meeting. He will then meet separately with South Korean President Lee Myung-bak and Japanese Prime Minister Taro Aso for talks on regional trade and security issues, followed by a joint meeting with both leaders focused on North Korea and the Six-Party Talks. Bush will then attend a private session of APEC leaders and join leaders in a meeting with the APEC Business Advisory Council.

Bush will meet with Peruvian President Alan Garcia on November 23 to discuss a pending U.S.-Peru free trade agreement as well as efforts to promote democratic governance and social justice in the Americas through economic opportunity. Bush will attend a series of APEC events in the afternoon, and is expected to meet with Russian President Dmitry Medvedev for talks covering the global financial situation, efforts to defuse tensions over Georgia and missile defense, and strategic cooperation issues.

Although this will be Bush’s final appearance at APEC before leaving office, Price highlighted the administration’s commitment to free trade and open markets as a path to economic development, expansion of foreign aid programs and dedication to promoting democracy and the rule of law.

“I don't think this is a farewell,” Price said, “but rather an opportunity for the president to continue to carry forward an affirmative agenda.”

A transcript of Price and Johndroe’s briefing is available from America.gov.