Defence dominates Apec summit

The group is split over trade liberalisation issues

Defence and security overshadowed trade and economics issues on Wednesday at a meeting of 21 Pacific Rim countries in Brunei.

Apec represents:

21 member states

Two-thirds of the world's population

60 % of global output

Almost half of world trade

A flurry of bilateral talks centred on defence was held between leaders gathered at the Asia-Pacific Economic Forum (Apec) - due to start later on Wednesday in the oil-rich sultanate, sited on Borneo island.

US President Bill Clinton held talks with the Russian leader Vladimir Putin, reportedly on arms control.

In no part of the world has globalisation been put to the test as much as in Asia...We have felt both its great benefits and its temporary but brutal sting

President Clinton

Mr Clinton was also set to meet Chinese President Jiang Zemin and Japanese Prime Minister Yoshiro Mori, in private discussions expected to focus on North Korea, the status of Taiwan and US plans for a regional missile shield for allies.

Apec was established in 1989 to promote free trade around the Pacific Rim, but its relevance has been questioned in recent years, after the World Trade Organisation (WTO) took up the mantle to push free trade.

Split among group

The group has also become increasingly split over trade liberalisation issues.

Some Apec leaders are wary about embracing free trade, fearing that globalisation will bring little to poor and marginalised communities in their nations.

President Clinton arriving with Chelsea on Tuesday

Non-governmental organisations have also launched forceful protests against globalisation at recent WTO meetings, arguing it does not benefit the poor, workers or the environment.

Problems in advancing multilateral trade pacts have prompted some members to go their own way.

As the summit opened, Australia and Singapore announced that they hoped to conclude a bilateral trade accord within a year.

Asked whether such deals were undermining global free trade agreements, Singapore's Prime Minister Goh Chok Tong retorted that countries which wanted to run faster should not be slowed down by those who did not want to run at all.

Open markets praised

President Clinton strongly defended free trade and open markets, in a speech to business executives.

Apec members

Australia

Brunei

Canada

Chile

China

Hong Kong

Indonesia

Japan

Malaysia

Mexico

New Zealand

Papua New Guinea

Peru

Philippines

Russia

Singapore

South Korea

Taiwan

Thailand

United States

Vietnam

He called for a new trade round of WTO talks "as early as possible next year", saying this would be the way " to raise living standards and to lower poverty".

But he acknowledged globalisation had also led to "abject despair", specifically during the 1997 Asian economic crisis.

He argued the crisis itself called for greater reforms and more open economies.

"The region is not out of the woods," he said.

"It would be a cruel irony, indeed, if the recovery were to breed a complacency that stalled the very changes making recovery possible."