KEY POINTS:
A firm commitment from Pacific-rim leaders to fast-track global free-trade talks is a welcome boost for the faltering world economy, Prime Minister John Key says.
The commitment comes as the global credit crisis increases fears that many countries will shut their borders to exporting nations, including New Zealand.
Outgoing US President George W. Bush pushed a five-week deadline at the 21-nation Apec leaders' summit in Peru over the weekend.
Leaders agreed to reach some agreement on continuing the "Doha Round" of negotiations - which has been stalled for seven years - by the end of next month.
They also pledged not to impose any protection measures - "which would only exacerbate the current economic situation" - in their own countries over the next year.
And this morning, in a final statement, the Apec leaders said they hoped to see an end to the world financial crisis within 18 months, though they gave no details of how this would be achieved.
Mr Key said he was satisfied with the final communique.
"I think it reflects the desire to show real leadership," he told NZPA.
"I don't think we should underestimate the challenges that still remain to achieve a successful Doha Round, but from New Zealand's point of view there are enormous gains to be made if that can be achieved and it's a step in the right direction that such a positive communique was released."
He said the onus was now on all leaders to make sure their ministers and officials carried through on their words.
Mr Key welcomed additional commitments to pursue stimulatory fiscal policies and to avoid erecting new trade barriers in the aftermath of the global market meltdown, regardless of domestic political pressure.
But former prime minister and Word Trade Organisation director Mike Moore said similar statements had been made at the last six Apecs and the real test would be to see whether leaders could deliver on their commitment.
Leaders now needed to return to their various capitals and talk tough to their ministers and officials to make sure they toed the line, he said on Radio New Zealand.
Leaders also stressed the importance of trade credit - the system that allows businesses to buy from one another and pay their bills later.
Trade credit has tightened dramatically in the past few months, as companies insist on being paid immediately.
Experts speaking at a chief executives forum held in Lima in conjunction with the Apec summit warned that a trade credit squeeze was threatening to freeze productive sectors of the economy, especially small and medium-sized businesses unable to rely on large balance sheets.
The statements were part of a declaration on the global economy, designed to stop the financial crisis turning into a world-wide recession.
Momentum is now building towards a recall of trade ministers to the World Trade Organisation in Geneva, where New Zealand is not without influence.
Trade Minister Tim Groser is on standby to join New Zealand Trade Ambassador Crawford Falconer, who chairs the agriculture negotiation group, a position Mr Groser held before he became an MP three years ago.
Mr Key met Mr Bush briefly at the first leaders' retreat yesterday. But the pair were to have a longer talk on trade matters last night or early this morning New Zealand time.
Mr Key said other leaders nodded in agreement when he told the summit yesterday that the commitment in the declaration had to be carried through.
President Bush told the summit about the "solidarity" of the G20 meeting in Washington last week over completing the Doha Round.
"And now we've got to put those words into action."
He said that although he was leaving office in two months, his Administration would push to get the Doha agreement completed "so we can send a message - we refuse to accept protectionism in the 21st century."
"The enduring lesson of the Great Depression is that global protectionism is a path to global economic ruin."
Mr Bush said only three commercial treaties existed when he came to office; today there were 14.
"Free market, free trade and the freedom of the peoples are crucial for the political and economic development of nations," he said.
The United States said in September that it wanted to join the Transpac free trade agreement involving New Zealand, Singapore, Chile and Brunei. Australia and Peru last week said they wanted to join, and other Apec countries have until March to join. Vietnam also wants in, and Mr Key said yesterday that Colombia wanted to but couldn't because it was not an Apec country.
President Bush yesterday strongly supported the pact, saying it could become the foundation for a wider free trade area in the Asia Pacific region.
Mr Key said he would raise with President Bush the issue of what would happen with the Transpac agreement under the the new administration of President-elect Barack Obama.
Mr Key's planned breakfast meeting with China's President Hu Jintao yesterday was cancelled.
But in a brief meeting between the two, President Hu invited Mr Key to China.
- with AP, NZPA
