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.