APEC to develop 'inclusive growth' strategy at Japan meeting+

SINGAPORE, July 21 Kyodo -
The Asia-Pacific Economic Cooperation forum will develop an ''inclusive
growth'' strategy in a bid to deter protectionism when Japan takes over as APEC
chair next year, according to a draft APEC statement.

The draft of a statement to be issued at the end of a two-day meeting of trade
ministers from APEC's 21-member economies in Singapore on Wednesday says the
ministers have instructed their senior officials to explore the concept of
''inclusive growth.''
The move is to ensure that as the global economy recovers from its worst
recession in decades, less-developed APEC members and society's poor are not
left behind or disadvantaged by the rising tide of protectionism, which could
harm APEC's goals for freer trade and investment.
The senior officials are expected to present their report identifying priority
areas at a ministerial meeting to be held just before the APEC summit in
Singapore in November this year so that a strategy can be developed in 2010
when Japan takes over the annually rotating chairmanship of APEC and hosts its
meetings, the document being circulated among senior officials says.
Some areas mentioned in the document include capacity-building for developing
economies, improving social safety nets and labor-market systems.
The draft ''Statement of the Chair'' expresses concern that ''not all segments
of our societies have benefited from economic integration. Trade and investment
liberalization can impose considerable adjustment burdens on our economies. The
economic crisis has amplified these effects, translating into increased
protectionist measures.''
''Going forward, while continuing to harness the benefits of globalization and
innovation, we will give greater focus to ensuring that economic growth is more
inclusive and its benefits are spread more widely,'' the draft says.
The new strategy signals APEC, which has been aggressive in pursuing
globalization and free trade, now realizes the need to face up to and address
some of the negative side-effects of globalization, which has been the concern
of thousands, including poor farmers, who staged protests during some APEC
meetings in the past.
It also underscores the need for APEC to balance the zeal of its developed
members such as the United States for globalization and free trade with the
problems faced by weaker member economies.
APEC leaders agreed at their summit at the Indonesian resort Bogor in 1994 to
launch a plan for free trade by 2010 for developed economies and 2020 for
less-developed ones.
That was followed by the ''Osaka Action Plan'' adopted at a 1995 summit in
Osaka, Japan, to chart a roadmap to implement the Bogor goals.
On the stalled Doha Round of World Trade Organization trade talks, the draft
statement says ministers ''called for an ambitious and balanced conclusion to
the Doha Development Agenda in 2010.''
It says APEC members would not to resort to protectionism in the attempt to
overcome the current global crisis, saying, ''We will seek to ensure that
measures to address the crisis will not contain protectionist elements.''
''We agree to extend until 2010, and beyond if necessary, the commitment made
by APEC leaders in November 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.''
At the APEC summit in Peru last November, the leaders agreed to refrain from
raising new barriers to trade and investment for 12 months.
In addition, ''We will not retreat into financial protectionism, particularly
measures that constrain worldwide capital flows, especially to developing
countries,'' it adds.
APEC members have committed $1.78 trillion in stimulus packages since September
last year, it notes.
The draft says that ''although there have been some recent signs of the global
economy stabilizing, the situation remains uncertain and significant risks to
economic and financial stability persist.''
The trade finance situation has generally improved, it says, and urges
multilateral development banks to speed up implementation of trade finance
programs in the region.
On a proposal for a Free Trade Area of the Asia Pacific, the draft says APEC is
continuing its analysis of the likely economic impact of a free-trade area, and
a report by senior officials is expected by the end of this year.
Trade ministers or their deputies from APEC's 21 member economies who are
attending the two-day meeting held a ''retreat'' Tuesday, to be followed by a
plenary session Wednesday.
The statement will be released at the end of their meeting Wednesday along with
a separate statement that official sources say is expected to focus at greater
length on the Doha Round and protectionism.
The APEC members are Australia, Brunei, Canada, Chile, China, Hong Kong,
Indonesia, Japan, South Korea, Malaysia, Mexico, New Zealand, Papua New Guinea,
Peru, the Philippines, Russia, Singapore, Taiwan, Thailand, the United States
and Vietnam.
==Kyodo