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SINGAPORE : Singapore, as incoming chair of the Asia Pacific Economic Cooperation (APEC) grouping, has made reviving the Doha Trade Talks one of its top priorities ahead of next year's meeting.
The republic will host the annual APEC Leaders' Meeting next November, and officials met on Wednesday to draw up next year's policy agenda.
The Doha Development Round is the current trade negotiation platform of the World Trade Organisation, but talks have stalled due to disagreements on issues such as agriculture and industrial tariffs.
This has resulted in an impasse to the Doha Round, which aims to lower trade barriers worldwide and in turn, increase global trade.
Singapore said this deadlock, if left unchecked, will lead to a much longer period of slower growth among most economies.
"This impasse is bad in itself, without the financial crisis. But if you take the financial crisis, the economic slowdown and the impasse in Doha together, it's a deadly concoction," said Ravi Menon, Second Permanent Secretary, Singapore Trade and Industry Ministry.
The risk has heightened with the global financial meltdown, but trade officials warned that the greatest risk is in protectionist policies.
Singapore said APEC, as a bloc, can help businesses by pushing for integration efforts to remove trade barriers, facilitate investment flows, and boost connectivity through improved transport and logistics networks.
And the benefits are tangible. Regulatory reform in nine APEC member economies has shown a total estimated gain of US$100 billion a year.
According to the World Bank, countries with high physical connectivity experience one per cent more in annual growth and 40 per cent more variety in export products.
The 21 APEC member economies represent 40 per cent of the world's population, 55 per cent of the world's GDP and half of the world's trade.
Market unpredictability aside, there is also some amount of uncertainty as one of APEC's largest member states, the US, picks a new president in November. Analysts said open trade may not be high on the agenda for the new US administration.
Professor Robert Lawrence, JFK School of Government, Harvard University, said: "The Democrats have traditionally been much more sceptical in their voting patterns when it comes to trade agreements in the United States.
"Barrack Obama - the candidate - has said that he's in favour of agreements, but they really must be stronger on labour and environmental provisions. So, he will support those, but they may be a little more difficult to negotiate with some countries."
Whatever the new administration, analysts pointed out it will be in the US's best interests to engage Asia as it seeks to claw its way out of the current financial rut.
"The US economy today is much more competitive than it was a few years ago. Although it has strengthened recently, the dollar is still weak, so as the US looks to grow its way out of its current troubles, exports are going to become increasingly important. So trade agreements I think is one way the US can try to promote its exports," said Professor Lawrence. - CNA /ls
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