Fischer says APEC now facing 'challenging times'

Fischer says APEC now facing 'challenging times'

CANBERRA (Bloomberg): Australia's Trade Minister Tim Fischer said the Asia-Pacific Economic Cooperation group faces "challenging times" in the lead up to a November meeting in Malaysia, though it is still a "valuable organization" that Australia will support.

Responding to a question following a speech to the National Press Club, Fischer said he did not agree with criticism APEC is losing its effectiveness and should not be led by Malaysia Prime Minister Mahathir Mohamad, who fired his deputy Anwar Ibrahim recently for alleged sexual misdemeanors.

"I would say that it is a particularly challenging time for APEC," Fischer said. "It is a difficult set of meetings at the best of times. I wish Malaysia well, and Mr. Mahathir well in the role they have to play" in hosting the conference in Kuala Lumpur, he said.

APEC has 18 member countries from around the Pacific region, including the U.S., Japan and China. The group is working to achieve free trade between members by 2010 for developed countries and 2020 for developing nations.

Australian Prime Minister John Howard this week said he stands by his recent comments that Mahathir took an "authoritarian approach" in firing Anwar.

The comment prompted Malaysia to lodge an official protest with Australia's High Commissioner to the country Robert Cotton, according to AFP.

Fischer said APEC members need to maintain free trade within the group, and urged members to keep pursuing reforms that will loosen trade restrictions.

"APEC has to achieve further progress and head off any serious slippage with regard to the movement forward of trade between the APEC member economies," Fischer said.

"There is a course, a way forward, which will involve pain. That does involve staying the course with regard to reform."

Overall, Fischer said Australia will keep its support for APEC and make every effort to ensure the November round of talks is a success.

"It is too early, far to early, to contemplate writing off APEC," Fischer said. "It is a valuable organization, and we, Australia, as a matter of bipartisan agreement will be putting maximum effort into this vital, regional Asia Pacific rim organization to ensure that progress is made at Kuala Lumpur."

In Kuala Lumpur, Malaysian Premier Mahathir Mohamad said Thursday that Malaysia would give up its right to host the APEC summit if the majority of the group's members felt so because of a political crisis here.

"If all APEC members agree to move away from Kuala Lumpur, I have no way of stopping," Mahathir told reporters.

"If it is only one person, he can stay away. It is his right," Mahathir said, apparently referring to Australian Prime Minister John Howard.