APEC ministers say group must ensure economic recovery does not stall
By S Ramesh, Channel NewsAsia | Posted: 12 November 2009 1950 hrs

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SINGAPORE : APEC trade and foreign ministers have emphasised the importance of ensuring that economic recovery in member economies does not stall.

To this end, they will work with other international organisations to lay the foundation for growth that is inclusive, balanced and sustainable, driven by innovation and a knowledge-based economy.

They also announced steps to improve the business environment in the 21-member economies.

In a wide-ranging statement issued on Thursday, the ministers noted that the global economic situation had eased considerably.

The International Monetary Fund (IMF) estimates that world GDP would rise by nearly three per cent in 2010, and that all APEC economies will shift to positive growth next year.

But they warned that recovery remained fragile and the growth profile over the next few quarters was likely to be uneven. Unemployment also remained unacceptably high in many of the 21-member economies.

Singapore Trade & Industry Minister Lim Hng Kiang said: "There is still a temptation to resort to trade restrictive measures in order to placate or solve some of these unemployment issues, so there is a need for vigilance.

"And more importantly, there is a need for exit mechanisms for some of these measures, to make sure that even if they are temporary measures taken because of the severity of this crisis, there have to be clear steps (on) how to withdraw it when things revert back to more normal conditions.

"The most important measure to ensure that world trade continues and liberalisation continues is, of course, to be able to conclude the Doha Round by the end of 2010. The assessment around the table was that we have fairly strong political will, but we have to translate that into actual successful conclusions of the negotiations."

Mr Lim said some progress has been achieved since July, but a greater urgency and engagement is needed. Hence, the need to continue promoting APEC's core agenda of free and open trade and investment.

He added: "You need to provide the resources to the people, particularly through education and through human resource development, so that they can take advantage of the growth opportunities best.

"There must be worker retraining, there has to be adjustments, assistance for structural adjustments that you need to help the SMEs... and you need resilience, social resilience (and) safety nets."

Another area of focus is to make the process of doing business cheaper, faster and easier.

The ministers agreed to make it 25 per cent cheaper to do business in the region by 2015. An interim target to make improvements in this area has been set for 2011.

The proposal is spearheaded by Singapore and will focus on five priority areas - starting a business, getting credit, enforcing contracts, trading across borders and dealing with permits.

There are concrete gains to be expected. It will now cost US$450 less to import and export a container of goods, and will reduce the time to start a business by one week.

Singapore's Foreign Affairs Minister George Yeo said: "The atmosphere in which these targets are set and member economies try to achieve them is quite unlike traditional trade negotiations which are sometimes seen as 'you win, I lose'.

"Among APEC economies, because we don't have binding targets, there is a very interesting peer dynamics of each trying to be as good as the next person, and economies (are) quite willing to help less developed economies. So the discussions among officials, ministers and leaders tend to be quite collegial."

APEC trade ministers also reaffirmed their commitment towards the Bogor goals of open and free trade and investment.

Under the Bogor goals, the industrialised economies have to achieve the goals laid out by 2010. APEC ministers said they will set up a work plan of assessment to see how far the economies have come about in achieving these goals.

APEC officials have also been urged to study the possibility of an Asia-Pacific Free Trade Area. A report on this is expected next year. - CNA /ls