Leaders of the 21 APEC economies began discussions at the APEC Economic Leaders’ Meeting (AELM) in a Retreat Session held at the Istana, Singapore.    The two-day Retreat, chaired by Singapore Prime Minister Lee Hsien Loong, centred around the APEC 2009 theme of “Sustaining Growth, Connecting the Region”.

Focusing on trade issues under the theme of “Connecting the Region” today, the APEC Leaders resolved to inject a strong political push to conclude the Doha Round of WTO negotiations by the end of 2010. There was a sense of urgency that as negotiations moved into the end-game, strong political will was critical to break the impasse. In a robust defence of free trade, APEC Leaders also reiterated their commitment to reject all forms of protectionism.

There was also a good discussion on APEC’s long-term vision of a Free Trade Area of the Asia-Pacific (FTAAP). There was consensus among the Leaders that APEC economies should step up their efforts to realise this vision, by laying the necessary building blocks and exploring possible pathways.

In this regard, several Leaders highlighted the Trans-Pacific Strategic Economic Partnership Agreement (TPP) as a possible pathway. They welcomed US President Barack Obama’s announcement today that the US will engage in the TPP and work towards a broad-based and high-quality agreement.  Prime Minister Lee noted that “significant steps like the TPP are important to help keep up the momentum in our efforts to realise the FTAAP vision.” He acknowledged, however, that political conditions need to be right before negotiations for a region-wide FTAAP could be launched

Setting the scene for the discussion, PM Lee observed in his opening remarks that despite signs of a modest economic recovery, risks remained the global economy, such as unemployment, weak consumption, and protectionist pressures. Going forward, APEC economies’ priorities were to support this tentative recovery, keep it going, and lay the ground for strong, stable and sustainable growth.

PM Lee further observed that while some disenchantment with laissez-faire capitalism and rethinking of economic premises was natural after a crisis of such magnitude, he urged APEC Leaders not to let the pendulum swing too far in the opposite direction. “Economic fundamentals such as open markets and free trade remain key to continued prosperity,” said Mr. Lee.

The theme of free trade resonated strongly among APEC Leaders. They agreed that that apart from traditional trade and investment liberalisation issues, APEC also needed to focus on new areas like regulatory reform and connectivity and take a more practical approach to connect our markets. Some Leaders suggested enhancing regional connectivity by improving cross-border transport linkages of all forms – including land, air and sea connectivity. Others highlighted the need to focus more on structural reforms to raise productivity and enhance the region’s economic competitiveness. They noted that the recent initiative to cut the costs of doing business in the APEC region by 25% by 2015 was a timely and important one.

Some APEC Leaders spoke on the importance of bridging the development gap among economies and strengthening capacity building efforts toward that end. Others felt that looking ahead, APEC should broaden its agenda to meet new challenges such as closing the digital divide and enhancing human and food security.

CHEN HWAI LIANG
PRESS SECRETARY TO PRIME MINISTER, SINGAPORE
14 November 2009, 1900hrs