Pacific Rim ministers warn against trade barriers

LIMA, Peru — Ministers from Pacific Rim nations warned Thursday that imposing trade barriers in reaction to the global economic downturn would only deepen the crisis.

The foreign affairs and trade chiefs, meeting ahead of the summit of the 21-member Asia-Pacific Economic Cooperation group, agreed instead to work toward even freer movement of goods and investment throughout the Pacific Rim.

"We are against any protectionist sentiments and we reaffirm our commitment to the liberalization of trade," said their host, Peruvian Foreign Minster Jose Garcia Belaunde.

The ministers also endorsed an action plan proposed at an economic summit in Washington last weekend. The proposal calls for increased government stimulus efforts and improved financial regulation. U.S. President George W. Bush was expected to push for backing for the proposal from all APEC nations when he arrives Friday.

U.S. Trade Representative Susan Schwab said history illustrated what can happen when countries react to an economic downturn by trying to protect domestic industries.

"We all draw lessons from what happened in the 1930s, when the U.S. and other trading countries took the wrong approach by raising trading barriers," she said, referring to moves that deepened the Great Depression.

This year's APEC meeting has already seen action on trade. China and Peru announced Wednesday that they had concluded talks on a free-trade pact, furthering Beijing's moves to seek new markets and sources of raw materials in Latin America.

Trade between China and Peru reached $5.5 billion last year, up from $2 billion in 2004, mostly on the strength of Peruvian mineral exports.

The United States, Peru and Australia said Thursday they'd like to begin negotiations on joining a Pacific Rim free-trade zone currently made up of Chile, Brunei, New Zealand and Singapore. Chilean Foreign Minister Alejandro Foxley, acting as spokesman for the group known as the P4, said discussions began in September.

"We have good news, at this time when the financial crisis has brought only bad news," Foxley said.

Schwab said she believes the administration of President-elect Barack Obama will support U.S. entry into the pact.

Some APEC members have proposed a free-trade zone for all 21 member economies, but that was removed from the agenda in Lima to allow leaders to focus on the global financial crisis.

___

Nov 20, 2008 - 4:04 p.m. EDT

Copyright 2008, The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.