APEC summit issues declaration on regional development
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E-mail CRI, September 10, 2012
Leaders of the Asia-Pacific Economic Cooperation, or APEC, concluded their summit in the Russian city of Vladivostok on Sunday with a declaration outlining the future development of the region.
The leaders pledged to avoid the deepening damage from the European debt crisis and revive waning growth in the region by supporting open trade, reforming their economies and strengthening public finances.
Russian President Vladimir Putin has concluded the summit, saying fellow leaders must show a promising outlook on regional economic growth.
"The Asia-Pacific region is a locomotive of the world economy now. While in the eurozone we see the prospects of zero growth or even recession, here is the growth, and this growth is significant. The rates of growth are going a bit down, but nevertheless there is growth. And generally speaking, this state of affairs makes all the leaders of the economies representing this region optimistic."
According to the declaration, the leaders agreed to ensure long-term fiscal sustainability while recognizing the need to support recovery within the available fiscal scope. They promised to strengthen a multilateral trading system by pushing forward the Doha Round of global trade talks.
They also pledged to refrain from raising new barriers to trade and investment, and not impose new export restrictions or implement WTO-inconsistent measures in all areas by the end of 2015.
Facing the downward pressure of the global economy, the APEC nations have welcomed European leaders' commitment to taking all necessary steps to safeguard the integrity and stability of the euro area.
In the meantime, International Monetary Fund Managing Director Christine Lagarde briefed the press on the sidelines of the APEC Summit to say that the IMF took an interest in the design and monitoring of the European Central Bank's plan to staunch the eurozone debt crisis with unlimited bond purchases.
"First of all, there is some positive development on the European scene, in particular what the Central Bank has announced last Thursday is a clear indication of the framework in which it would be an active player in restoring the situation in the eurozone. As far as the IMF is concerned, we shall certainly be ready to help and to assist in the design and monitoring of eventual programs of all conditions that would be part of the solutions."
Lagarde also backed a new Chinese infrastructure spending offensive, saying it was important that countries running external surpluses make their contribution to supporting global growth.
"In terms of China, clearly our view is that countries with surplus are in the capacity to not only let automatic stabilizers play but could also leverage their surplus to actually support growth, and particularly in the case of China, domestic growth, which is this rebalancing act that has taken place lately."
As for Russia, the host country of the APEC Summit, many experts believe the world's largest nation has made the summit a gateway for Asia to European markets, which forms a part of Russia's "looking east" development strategy.
Igor Shuvalov, Russian first deputy prime minister, said his country was open and ready for cooperation with foreign investors.
"Foreign companies can buy agricultural lands with no restrictions. And if this business grows, we think that export opportunities will be permanently increasing."
During the summit, leaders also recognized that the Free Trade Area of the Asia-Pacific is a major instrument to further APEC's regional economic integration agenda.
The APEC region, composed of 21 Pacific member economies, accounts for about 40 percent of the world's population, around 57 percent of world's GDP, and 48 percent of global trade.
Indonesia and China will host the next APEC Summits in 2013 and 2014, respectively.
