LIMA–Leaders of Asia and the Americas faced mounting pressure today to stop the spread of the financial crisis and resuscitate moribund free-trade talks as they flew into Lima for a weekend summit.
At the top of the agenda for the 21 leaders of the Asia-Pacific Economic Cooperation forum was pushing forward a declaration drafted at the Group of 20 summit last weekend in Washington and working to prevent new barriers to trade.
Leaders and experts in Lima, pointing to the past week of sharp plunges on stock markets in the United States and Asia, said much more action is needed to protect world economies.
"Countries should enhance confidence ... and take prompt and effective measures, including all necessary fiscal and monetary means to stop the spread of the financial crisis," Chinese President Hu Jintao told a meeting of CEOs today.
Nine of APEC's 21 members were at the Washington summit, and the leaders and economists in Lima warned against a retreat to protectionism, saying it would only deepen the turmoil.
The APEC leaders also were expected to commit to wrapping up the broad outlines of a free-trade agreement by the end of December. The World Trade Organization talks were launched seven years ago in hopes of reducing trade barriers globally, but negotiations hit a snag in July.
"A failure to follow through in Geneva and deliver the results we need would represent nothing short of political failure," New Zealand Prime Minister John Key said.
However, some fear leaders will be unwilling to hold serious talks until U.S. President-elect Barack Obama takes office in January. Outgoing U.S. President George W. Bush flew into Lima this afternoon but Obama will not have representatives there.
Progress on trade at APEC so far has been limited. China and Peru said Wednesday that they had concluded talks on a free-trade pact, and Colombia and Canada were set to sign a free-trade agreement of their own this evening.
Colombia wants to join APEC – Chile, Peru and Mexico are the only Latin American members – but cannot until a membership freeze ends in 2010.
Meanwhile, on the sidelines of the summit, former Taiwanese Vice President Lien Chan made his case to Hu for greater involvement in the World Health Organization.
"We want to have more opportunities to participate in medical consultation, medical training, exchange of information and other type of work related to health," Lien told reporters after the 45-minute meeting.
China claims Taiwan as a part of its territory and has repeatedly blocked Taiwan's admission to major global bodies, arguing that allowing the self-ruled island even observer status in groups such as the United Nations would give it the trappings of sovereignty.
Lien did not say how Hu responded.
