Obama: Hoping for Pacific Free Trade Plan by 2012

Recession in Europe – Asia’s second most important trade partner after the US – was a concern for leaders of the Asia-Pacific Economic Cooperation forum. At the meeting in Hawaii, APEC leaders agreed that free trade and global cooperation could fend off recession in Europe, reports Elaine Kurtenbach for Businessweek. In an era of bilateral trade pacts, US President Barack Obama introduced a plan for a trans-Pacific free trade zone and “to work toward eliminating tariffs and other barriers to trade and investment, facilitating trade and other business, harmonizing regulatory standards, aiding small and medium-size companies and contributing to development and poverty relief.” China, poised to become the world’s largest economy, labeled the plan as ambitious, but expressed interest in joining. The group, with consensus decision-making among 21 member economies, takes incremental steps to reduce costs of conducting business in the Pacific region. APEC members agree that economic growth contributes to prosperity and stability, but remain competitors, seeking a lion’s share. – YaleGlobal