APEC: Renewed Commitments to Resist Protectionism

Issued by APEC Ministerial Meeting

APEC Ministers renew commitment to resist protectionism

Yokohama, Japan, 11 November, 2010 - APEC Trade and Foreign Ministers on Thursday recommended to Leaders to extend their commitment to a standstill on new trade and investment barriers until the end of 2013.

This, along with other commitments, are included in two statements, joint ministerial statement and a separate statement on advancing the World Trade Organization's Doha Development Agenda (DDA). They were adopted by Ministers from APEC's 21 member economies at the conclusion of their annual meeting held this year in Yokohama, Japan.

"Open markets are vital for growth and job creation, enabling strong and sustainable growth in this region," the DDA statement said.

"While world economy is on its way to recovery; however, there still remains a possibility of increasing protectionist measures in the future," it said.

Ministers "agreed to recommend to our leaders to re-extend their commitment on standstill made in 2008, to refrain from raising new barriers to investment or to trade in goods and services imposing new export restrictions, or implementing WTO-inconsistent measures in all areas, including those that stimulate exports, until the end of 2013."

Leaders meeting in Lima in 2008 during the global financial crisis committed to refraining from raising new barriers to investments or to trade in goods and services, and recommitted again last year when they met in Singapore. Ministers also meeting in 2009 made the same commitment, to the end of 2010, "and beyond if necessary."

The 2010 statement also urged a successful conclusion to the WTO's Doha round of trade negotiations and stressed support for the multilateral trading system.

"A strong multilateral trading system is an essential source of economic growth, development, and stability. An ambitious and balanced conclusion of the DDA will provide a much-needed stimulus for the global economy," it said.

"The delay in concluding the DDA negotiations is therefore a source of continuing concern. In this regard, we strongly reiterated the importance of translating our political commitment into concrete actions toward a final conclusion, delivering meaningful new trade opportunities in all areas as well as substantial reductions in trade distortions in light of the development dimension as mandated."

In the joint ministerial statement, Ministers acknowledged that they were meeting two years after the global financial crisis, and although the APEC region has been leading global economic growth, the crisis is not yet over.

The joint statement said economies now face challenges, in particular, "of addressing volatility, creating employment and reconsolidating finance, and continuing to keep a balance between recovery and the exit strategies of fiscal and monetary policies."

Ministers also endorsed a report on the assessment of economies' progress towards the self-imposed Bogor Goals of free and open trade and investment. The report on the progress of 13 APEC economies will be delivered to APEC Leaders for their consideration.

Ministers also submitted APEC's new growth strategy to Leaders. Acknowledging that recovery from the global slowdown is still fragile and uneven, Ministers said the strategy is a long-term and comprehensive plan that aims to achieve balanced, inclusive, sustainable, innovative and secure growth throughout the region.

"In the aftermath of the global financial crisis, the global economic recovery remains weak. We believe it is time for us to share a growth strategy to sustain recovery and to lay the foundation for our future prosperity. APEC, as the world's leading growth center, is in a unique position to carry out such a task," the joint statement said.

An action plan to implement the strategy is also being drafted with a mechanism to review its progress, the statement said. Ministers also endorsed an extended strategy on structural reform, called "the APEC New Strategy for Structural Reform," acknowledging that this strategy will contribute to balanced and inclusive growth.

Ministers underlined the importance of APEC's work on strengthening regional economic integration (REI) -- including exploring possible pathways to a Free Trade Area of the Asia-Pacific (FTAAP) -- and affirmed that taking concrete steps towards realizing an FTAAP is an important part of the REI agenda.

Ministers also welcomed APEC initiatives in specific sectors including enhancing regional food security and energy security, empowering women, development of human resources, development of tourism, supporting small and medium businesses, protecting and managing marine resources and development of information and communication technology.

ENDS

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