Trade clash at Apec summit

Globalisation talk dominates the Apec forum in Brunei

World leaders clashed on the nature of globalisation at the opening session of the Asia-Pacific Economic Cooperation (Apec) meeting in Brunei on Wednesday.

World leaders, including President Bill Clinton and Russia's President Vladimir Putin, are attending the gathering, along with many Asian leaders, whose countries were hurt by the Asian economic crisis of 1997-98.

There are deep disagreements about whether uncontrolled globalisation is the best way to achieve economic growth, and the importance of free trade.

Defending globalisation

US President Bill Clinton defended open markets as a good "way to improve living standards and to lower poverty for all nations" at the Wednesday agenda briefing that opened this year's two-day summit of 21 Asia-Pacific economies.

Russian President Vladimir Putin acknowledged that "liberalisation will bring more benefits", but warned against the risks of free trade.

"Competition and selection are inevitable but we have to study how can we minimise their dangerous consequences," he said.

Competition and selection are inevitable but we have to study how can we minimise their dangerous consequences

Vladimir Putin Russian President

Chinese President Jiang Zemin also endorsed globalisation and promised a more open China, but he insisted that more attention should be paid to the "correct guidance and management of this procedure".

Both Russia and China are queuing up to join the World Trade Organisation (WTO).

Bilateral free trade agreements

Within the Asia-Pacific region, there is also growing concern about the proliferation of country-to-country free trade agreements.

Australia and Singapore said they will start talks to reach a free trade agreement within 12 months.

Those who can run faster should run faster. They should not be restrained by those who don't want to run at all

Goh Chok Tong
Singapore Prime Minister

The concern is that such bilateral deals could undermine drives to forge an inclusive free trade regime.

Some countries, notably Russia, Malaysia and South Korea, called for a slower approach to the liberalisation of world trade.

But Singapore Prime Minister Goh Chok Tong argued that: "Those who can run faster should run faster. They should not be restrained by those who don't want to run at all."

That sentiment was echoed by business leaders who on Wednesday urged the Apec leaders to speed up globalisation.

"While Apec's targets for trade and investment liberalisation are in place, it has failed to actually deliver an effective implementation path," said Rudolph Schlais, group vice president of General Motors.

"Apec has to take up the reins again. It has to get tough, take action, determinedly - and forcefully, if necessary," Schlais continued.

Oil pricing

Another issue of debate at the Apec summit is oil pricing.

Early this week, Apec trade ministers issued a statement that called for stability on the world oil markets, but fell short of specifying price control measures.

However, such measures are unlikely to be included in the Apec leaders' summit declaration because deep divisions within the summit will make it difficult to reach a consensus, Chilean President Ricardo Lagos said Wednesday.

Apec includes the United States, Japan, South Korea, China, Australia, New Zealand, Chile, Hong Kong, Malaysia, Papua New Guinea, Peru, the Philippines, Russia,Singapore, Taiwan, Thailand and Vietnam.

Apec also comprises major oil producers such Brunei, Canada, Mexico and Indonesia. The latter country is also a member of the Organisation of Petroleum Exporting Countries (Opec) which has vowed to limit oil output.