APEC puts brave face on hit to global growth

APEC puts brave face on hit to global growth

Alan Wheatley, Reuters, Shanghai

Last month's attacks on the United States have increased the risks facing the world economy, underscoring the urgency of a new round of global talks to tear down barriers to trade, Pacific Rim ministers said on Thursday.

A statement issued after two days of talks said a slowdown in the United States, Japan and Europe had dampened prospects for Asia-Pacific and global economies even before the deadly September 11 attacks on New York and Washington rocked consumer and business confidence.

"The recent terrorist attacks in the United States risk undermining some industries as well as consumer confidence," trade and foreign ministers from the Asia Pacific Economic Cooperation (APEC) forum said.

But the ministers, meeting to prepare a weekend summit of the 21-member group, said they remained optimistic about the economic outlook for the region, which accounts for 60 percent of global output and nearly half of world trade.

"In the face of the less favorable global and regional economic environment, ministers affirmed their confidence in the medium- and long-term prospects of growth in the APEC region and agreed to strengthen cooperation to tackle the short-term economic difficulties," the statement said.

The communique contained no new economic initiatives to cushion the economic downturn, the sharpest in decades for some countries.

But ministers said there was now an increased need to re- energize global commerce by ensuring a round of market- liberalization talks is launched when trade ministers meet next month under the umbrella of the World Trade Organization (WTO).

"Given the global economic slowdown, ministers agreed on the critical importance and urgency of successfully launching the round..." their statement said.

The previous attempt by WTO ministers to set an agenda for a trade round ended in fiasco in Seattle in December 1999, when rich countries failed to agree among themselves, let alone with developing nations, on how far and how fast they should drop barriers to global commerce.

Ministers from the 142 WTO member countries are due to try again from November 9-13, but security concerns sparked by the war on terrorism have fanned doubts whether the conference would be held, as planned, in Doha, the capital of Qatar.

Thursday's ministerial communique pointedly omitted a reference to the Gulf state that had been contained in earlier drafts, fanning speculation that the venue could be shifted. Singapore on Thursday reaffirmed an offer to host the conference if need be.

U.S. Trade Representative Robert Zoellick praised Qatar for its preparations for the conference but told a news conference: "There's also a recognition that because of events beyond its control, there's uncertainty and risk.

"Our first responsibility is to the security of our delegation and our people, and so it's understandable that the process is going forward to discuss that location."

The declaration is just one of a series of documents due to be finalized at this week's meetings, including an anti-terrorism statement condemning the deadly September 11 attacks.

APEC groups Australia, Brunei, Canada, Chile, China, Hong Kong, Indonesia, Japan, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, Philippines, Russia, Singapore, South Korea, Taiwan, Thailand, the United States, and Vietnam.