APEC leaders pledge to break deadlock, build economic ties

The two-day APEC summit in Hanoi which has attracted thousands of officials, businessmen and journalists to Vietnam's new $270 million convention center seems to have started on the right note and it seems likely that the summit will address issues for which APEC was originally formed viz economic co-operation.

APEC is an American-backed Australian initiative and was launched in Canberra in 1989 when Australian Prime Minister Bob Hawke called for more effective economic cooperation across the Asia Pacific Region. In the words of the then Australian prime minister, the aim of the group was to ensure "an effective process of economic consultation and co-operation" in the "region".

APEC was put across as a response to the post-Cold War period for prosperity in the Asia-Pacific region. It recognized the fact that in the new era economic considerations, rather than ideological and political considerations ought to gain ascendancy in the conduct of international relations.

However, over the years the group deviated from its original purpose and goals. As on date its agenda is really diverse and ranges from climate change to customs procedures to economic security threats to the role of women in development. It has assumed a security role post the September 11 attacks in the United States which has further blurred its focus.

At the Hanoi summit, Prime Minister, Abdullah Badawi stressed that mutual and comprehensive well-being was a compelling challenge for the Asia Pacific region. He urged that APEC should also return to its original purpose as an instrument for promoting economic growth through fostering freer, and fairer, flow of trade.

The leaders obliged and said they were ready to make deeper cuts on farm subsidies to revive comatose global trade talks. They agreed that the Southeast Asian APEC countries and the U.S. should make joint efforts to create stronger economic linkages and encourage greater involvement of the private sector and businesses, so as to better adapt to the trend of increased economic integration in the Asia-Pacific region.

The key to unlocking the trade talks is cutting down domestic farm subsidies by the U.S, lowering tariffs on farm imports and export subsidies by the E.U and reducing barriers to industrial and service imports by the developing countries. In a statement issued on the first day of the summit, leaders said that "major players" in the group were ready to commit to deeper cuts in trade-distorting farm support. Way to go…

APEC is famous for its tradition of having attending leaders dress in the national costume of the host nation. At the conclusion of the summit on Sunday, the leaders will don Vietnamese ‘ao dai tunics’ for the traditional salute to local fashion and to demonstrate Pacific rim solidarity.