APEC leaders promise swift economic action

[Dover]

Source: Reuters

LIMA (Reuters) - The United States, China, Japan and 18 other economies in Asia and the Americas pledged quick and decisive action on Sunday to prevent a severe global economic downturn.

With recession gripping parts of the world and financial markets in chaos, leaders at the 21-member Asia-Pacific Economic Cooperation forum, or APEC, said the slowdown is "one of the most serious economic challenges we have ever faced."

They said free trade and higher government spending were key to resolving the crisis and supported a big push to revive long-stalled global trade talks by seeking agreements on contentious farming and manufactured goods.

The leaders promised to "take all necessary economic and financial measures to resolve this crisis."

Their declaration at the end of a two-day summit in Peru echoed the measures called for by the "Group of 20" major economies at a meeting in Washington a week earlier, and widened the support for drastic action to stimulate lending and spending.

..snip..

PEC, which groups some of the most open economies in the world, warned that countries should not be tempted to use protectionist measures even if job losses mount.

"We are convinced that we can overcome this crisis in a period of 18 months," the leaders said at the summit...cont'd




Read more: http://www.reuters.com/article/topNews/idUSTRE4AJ7LF20081123

[ohio2007]

1. Mexico's Calderon Warns Obama Against Renegotiating Trade Deal

Nov. 22 (Bloomberg) -- Mexican President Felipe Calderon warned Barack Obama against trying to renegotiate the North American Free Trade Agreement, saying restricting commerce would only encourage illegal Mexican emigration to the U.S.

``The day access is closed, workers will jump over whatever river or wall you put there,'' Calderon told business leaders today at the Asia-Pacific Economic Cooperation forum in Lima, Peru, where leaders of 21 nations are meeting.

Calderon's comments reflect unease among U.S. trading partners over the likely economic policies of President-elect Obama, who has expressed reservations about Nafta and pending agreements with Colombia and South Korea. Leaders from the Asia- Pacific region also said they are concerned protectionism would exacerbate the global economic crisis.

``Obama's signals have not been very positive as far as free trade is concerned,'' Luc Gerard
Luc Gerard, president of Bogota-based private equity fund Tribeca Partners, said in an interview. ``There's definitely a concern.''

The leaders are meeting amid signs that the global economic slump is growing deeper. The worst credit crisis in seven decades spurred countries from China to the U.K. to boost spending or cut taxes in an effort to support growth and avoid a prolonged recession.

``One of the enduring lessons of the Great Depression is that global protectionism is a path to global economic ruin,''

snip

http://www.bloomberg.com/apps/news?pid=20670001&refer=home&sid=aK5q.pInliu8

[Dover]

2. Haven't they been paying attention? Surely they've seen Obama's economic team.

I don't believe there is a protectionist in the bunch. Free traders all.