apec leaders to meet in Peru on ways to avert global crisis

Leaders of the Asia-Pacific Economic Cooperation (Apec) will gather in Peru next week to tackle the global financial crunch and find ways to avert the expected global economic downturn next year, a Thai senior Apec leadrs to trade official said yesterday.

The conference will also address the stalled talks of World Trade Organisation (WTO) and push for the revival of the crucial talks on farm goods subsidies by developed nations.

The Apec leaders' summit will be held from November 22-23 in Lima, while trade ministers will meet next Wednesday and Thursday.

Deputy Commerce Minister Songkram Kijlertpairote said the meeting would focus on finding measures to solve the widespread financial crisis which is expected to affect global economic growth next year.

"Twenty-one Apec members may come up with a special statement on how to lessen the finance crisis and strengthen the global economy," said Songkram,.

Thailand would support any proposal to prevent the economic downturn and ensure that trade and the global economy would run smoothly next year.

According to the Trade Negotiations Department, trade among Apec nations accounts for 45 per cent of the global trade value. The gross domestic products (GDPs) of Apec countries, which amount to more than US$19 trillion (Bt663 trillion), account for 58 per cent of the world's total GDP.

Peru, as host of the meeting, has also invited US president-elect Barack Obama to join the meeting. Prime Minister Somchai Wongsawat will lead the Thai delegation.

The US will play a major role in this round of talks, particularly the Doha round, as the US and India are the two major nations that have not agreed with the deadlock issues of the talks. Chutima Bunyapraphasara, director-general of the Trade Negotiations Department, said the new US president should ensure the Doha round was wrapped up next year, because Obama had a policy of focusing on multinational cooperation

Doha has been delayed for six years since falling short of a consensus after the EU and the US refused to cut farm subsidies, while Brazil and India stalled on calls to reduce tariffs on industrial goods.

With the latest push, the issue may be taken up at a WTO ministerial meeting by the end of the year.

The summit will also address a major element of the Apec cooperation which is to bring down trade and business transaction barriers among its members.

Australia will propose that Apec members initiate the Apec Community cooperation. However, it would be the long term goal as most Apec members including Thailand have concentrated on the Bogor Goal achievement.

The Bogor goal aims to open up the markets in Apec's developed nations by 2015 and in its developing nations by 2020.

In addition, Thailand would delay joining the soon-to-be signed Asean free-trade agreements (FTAs) with India, China and Australia-New Zealand, due to a provision in Article 190 under the Constitution.

Under Article 190, any international commitment that Thailand makes or decisions and international issues need parliamentary voting and approval.

Other Asean countries are expected to sign the three regional trade deals during the Asean summit in Chiang Mai next month.

Chutima said if other Asean countries had signed the deals that would be implemented next year, Thailand would lose the opportunity to gain benefits under the FTA agreement, due to its delayed signing of the deal.