Singapore PM Lee says protectionist measures will only worsen global slowdown
By Imelda Saad,
LIMA, PERU: Leaders from the Asia Pacific Economic Cooperation (APEC) economies have pledged not to raise new barriers to trade and investment and refrain from imposing new export restrictions over the next 12 months.
APEC leaders also supported the broad policy response that recently came out from the Group of 20 Summit in Washington.
The APEC meeting in Lima is being held in extraordinary times.
The financial crisis, said to be the worst since the Great Depression in the 1930s, saw APEC leaders issuing a firm statement on the state of the global economy.
The message was one of unity and a strong commitment to open markets and integration.
Leaders agreed to work together to address the crisis and rejected attempts at protectionism.
Singapore Prime Minister Lee Hsien Loong noted that countries must resist the temptation to restrict access to their markets in a misguided attempt to protect jobs.
“Tit for-tat measures will only worsen the global slowdown,” he said.
Among the points APEC leaders agreed on are the need to strengthen the international financial system and a commitment to conclude the Doha trade talks.
The leaders said they aim to reach an agreement on modalities next month on the basis of progress made to date as well as support for an Asia Pacific Free Trade Area as a long term prospect.
The leaders’ statement has provided some comfort among business leaders meeting in Lima. They have been calling for decisive action to deal with the economic crisis, in particular help for small and medium enterprises (SMEs).
Teng Theng Dar, who chairs the APEC Business Advisory Council in Singapore, said: “The SME is one community that will be seriously affected by this crisis and we want to tackle it to make sure that the unemployment issue will not go out of hand. So we are very encouraged by the statement made by our leaders.”
One concern of business leaders is that APEC economies do not over-regulate their financial systems in a bid to address the market meltdown.
Mr Teng said: “Because of the current challenges that we are facing now and the regulatory bodies start to come in to introduce various policies, it may become so restrictive, before even knowing the real cause of the crisis.
“That will further cause the economy to be more protracted in terms of slowing down of growth. But I think there was a very clear message to us that the governments understand the complexity of the issue.”
- CNA/ir
Source : Channel NewsAsia - 23 Nov 2008
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