APEC to draw up growth strategy in 2010 under Japan's initiative+

SINGAPORE, Nov. 12 Kyodo - Pacific Rim ministers pledged Thursday to compile a long-term ''inclusive'' growth strategy for the region in 2010 under Japan's initiative and accelerate efforts to seek the integration of their economies through trade and investment
liberalization.

The foreign and trade ministers of the Asia-Pacific Economic Cooperation forum
said in a joint statement after their two-day meeting in Singapore that they
will continue to reject protectionism in international trade and urged
''maximum flexibility'' to successfully conclude the stalled Doha Round
liberalization talks under the World Trade Organization within next year.
APEC finance ministers, who met separately, vowed to maintain fiscal stimulus
measures to bolster the global economic recovery, agreeing that the
implementation of ''exit strategies'' from expansionary fiscal and
accommodative monetary policies should take into account the different stages
of economic recovery in member economies.
The ministerial agreements will be reflected during the summit of APEC leaders
scheduled for Saturday and Sunday.
Host Singapore has proposed that economic growth within the 21-member APEC
grouping after the recent global recession must be more ''inclusive'' to ensure
both developed and developing members and all segments of society benefit from
economic integration.
The APEC trade and finance ministers said they will instruct officials to
''develop a multiyear capacity building program on inclusive growth'' and will
report on progress at next year's ministerial meeting.
''We need to develop this concept further and Japan being the chair for next
year will take this further and develop specific programs,'' Singaporean Trade
and Industry Minister Lim Hng Kiang said at a press conference after the
meeting.
Japan will host a series of APEC meeting in 2010, effectively assuming a
leading role in drafting the long-term comprehensive growth strategy that may
include such measures as assisting smaller companies, improving social safety
nets and enhancing trade in energy-efficient and environment-friendly goods.
''As the surrounding environment has changed, we would like to suggest a growth
strategy for APEC next year,'' Japanese Economy, Trade and Industry Minister
Masayuki Naoshima told reporters. He also announced the main theme of next
year's meetings is ''change and action.''
On the global economy, the ministers said tensions have ''eased considerably''
though the recovery ''remains fragile.''
Accelerating regional economic integration has been very high on the agenda at
international conferences in the region. ''We reaffirm our commitment to
accelerating work on APEC's core agenda of strengthening REI (regional economic
integration),'' the statement said.
The initiative comes amid recent heated debate over which of the existing
groupings would be the most suitable base to develop a closer multilateral
union in the future. There are two major groupings in the area -- APEC and the
10-member Association of Southeast Asian Nations, which holds regular summits
with Japan, China and India.
The debate is also about whether the United States should directly join such an
envisaged closer union. If it is APEC-based, the door is no doubt open for
Washington.
But the ministers seem to be falling short of striking a deal with details.
They pledged to continue to ''explore building blocks'' toward a possible Free
Trade Area of the Asia-Pacific. However, conference sources said some work will
be left undone to develop a range of possible pathways as the concept has yet
to be concretely established and some countries, including China, are cautious
about U.S. participation.
The ministers ''are just exploring the possibilities and the visibilities,''
said ASEAN Secretary General Surin Pitsuwan.
Japan has proposed the idea of forming an ''East Asian community,'' although
Prime Minister Yukio Hatoyama has left vague which countries should and should
not join the framework.
But at the same time, Tokyo says the Asian economic integration that Japan
seeks ''would be based on the security alliance'' between Japan and its main
ally, the United States.
U.S. President Barack Obama is scheduled to arrive in Japan on Friday and hold
talks with Hatoyama. The two leaders are expected to confirm a strong bilateral
alliance before heading to Singapore for the weekend APEC summit.
On the WTO talks, the ministers chose harsh wording, indicating the frustration
of the organization's Director General Pascal Lamy, who was also in Singapore
to urge further political commitment to wrap up the Doha Round talks, launched
in 2001 and originally scheduled to be concluded in 2005.
''We agree to direct our officials to exercise pragmatism and maximum
flexibility on all issues to narrow gaps and secure convergence on a final
package,'' the statement said.
APEC, which accounts for more than 50 percent of the world's economic output
and 40 percent of the value of global trade, groups 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.
(Additional reporting by Siti Rahil and Christine T. Tjandraningsih)
==Kyodo