APEC economic leaders vow to shun protectionist policies

LIMA, Peru — Leaders of the Asia-Pacific Economic Cooperation (APEC) economies have vowed to shun and roll back protectionist policies in a joint declaration that also reaffirmed their commitment to address corruption, terrorism and climate change. 

 

In a joint statement, the APEC leaders said protectionist policies, which emerged in the face of doubts on the merits of free trade, stunts the growth of the international economy.

 

“We will refrain from competitive devaluation, resist all forms of protectionism and not target our exchange rates for competitive purposes,” they said. 

 

“We reaffirm our commitment to keep our markets open and to fight against all forms of protectionism.” 

 

The APEC leaders also pledged “to roll back protectionist and trade-distorting measures, which weaken trade and slow down the progress and recovery of the international economy.” 

 

Debates about the impact of globalization and open trade resurfaced following the exit of the United Kingdom (UK) from the European Union (EU) or “Brexit” and the election of Donald Trump, who backs protectionist policies, as the next president of the United States (US). 

 

Last June, UK voted to bolt out of the EU in a development that would allow London to sign its own trade agreements. 

 

Trump, meanwhile, said he would not participate in the Trans-Pacific Partnership, impose tariffs on countries like Mexico and China and renegotiate the North American Free Trade Agreement, which he described as a “disaster.”

 

 

The challenges confronting the world economy, which prompted some sectors to question the need for free trade, were mentioned in the joint statement. The APEC leaders said there has been “a slow and uneven recovery from the economic and financial crisis of 2008, resulting in lower global economic growth, volatile financial conditions, lower commodity prices, rising inequalities, employment challenges, and significantly slower expansion of international trade in recent years.”

 

To address these issues, the APEC leaders promised to use monetary, fiscal and structural tools both individually and collectively to strengthen global demand and address supply constraints. 

 

The APEC leaders also committed to support and to enhance the capacities of micro, small and medium-sized enterprises (MSMEs), which they said constitute an essential component to achieve quality growth and prosperity. 

 

They also cited the need for infrastructure, people-to-people connectivity and information and communications technology to achieve quality growth and human development.

 

The APEC leaders likewise urged all economies to implement critical anti-corruption actions especially measures against bribery of public officials. They said all relevant stakeholders, including APEC anti-corruption authorities and law enforcement agencies, should be able to participate effectively in such measures. 

 

In the same declaration, leaders of the 21-member economic bloc condemned terrorism and encouraged other economies to take actions and to share best practices in addressing its threat. 

 

Climate change was also part of the agenda of the APEC meet, with leaders pledging to step up measures to mitigate its effects.APEC meet, with leaders pledging to step up measures to mitigate its effects.

 

“Climate change is one of the major challenges for food production and food security. We commit to enhance our cooperation on implementing policies to address the relationship between food security and climate change in ways that respect varying conditions in each economy,” the leaders said. 

 

“We also commit to intensify our efforts to mitigate impacts of drought, flood and climate-related disasters on food production and food security.”

 

Leaders of APEC economies welcomed the recent entry into force of the Paris agreement, which aims to limit temperature rise to 1.5 degrees Celsius above pre-industrial levels. They also committed to the deal’s “transparent and effective implementation in order to transition towards a low carbon, climate resilient economy.”

 

The meeting of APEC leaders was held here from October 19 to 20. The priorities of this year’s summit were regional economic integration and quality growth, enhancing the regional food market, modernization of MSMEs and developing human capital.