Leaders: Asia-Pacific free trade is vital

Associated Press

KAPOLEI, Hawaii

Asia-Pacific leaders say further freeing up trade is crucial to a lasting global economic recovery as they wrap up an annual summit that produced tangible progress toward a regional trade bloc.

A declaration Sunday from the Asia-Pacific Economic Cooperation summit in Hawaii says the region is now the vanguard for global growth due to previous progress in forging closer economic ties and free trade.

A U.S.-backed plan to forge a Pacific free trade bloc got a big boost Sunday when leaders of Canada and Mexico joined Japan in expressing support for a deal that has received a cool reception from China.

The APEC leaders say that their meeting at a time of uncertainty for the global economy has strengthened their desire for cooperation.

The news was a coup for President Barack Obama, who made progress on the pact one of his top priorities for the Asia-Pacific Economic Cooperation summit in his home state of Hawaii.

It comes after Japan, the world’s third-biggest economy, said Friday that it wants to join the nine nations involved in talks on what has been dubbed the Trans-Pacific Partnership.

The balmy weather for the annual APEC gathering at a resort on the west side of the Hawaiian island of Oahu contrasted with deepening pessimism over the economic outlook as the leaders sat down for a day of talks on how to spur growth and create jobs. With Europe again on the brink of recession, Asia’s vital role as a driver of global growth has gained even greater urgency.

IMF Director Christine Lagarde attended the summit, briefing the APEC leaders on the latest developments in Europe. The International Monetary Fund will play a key role in coming months in overseeing efforts by Italy, and other ailing economies that use the euro common currency, to rein in debt.

Obama has said he is optimistic that work on the American-backed trade pact could result in a legal framework by next year.