Pacific Rim Leaders Vow Further ‘Extraordinary’ Steps on Crisis

Pacific Rim Leaders Vow Further ‘Extraordinary’ Steps on Crisis

Financial News

Nov. 23 (Bloomberg) -- Leaders of Pacific Rim nations promised to work together on further “extraordinary” steps to combat the global economic crisis and pledged to refrain from erecting new barriers to trade and investment.

Leaders of the 21-nation Asia-Pacific Economic Cooperation group, which includes the U.S., China and Japan and accounts for half of world output, also called for improved corporate governance and backed efforts to thaw frozen credit markets.

“We have already taken urgent and extraordinary steps to stabilize our financial sectors and strengthen economic growth and promote investment and consumption,” the group said in a statement during its meeting in Lima, Peru. “We will continue to take such steps, and work closely, in a coordinated and comprehensive manner, to implement future actions.”

The meeting comes amid signs the global economic downturn is deepening as companies from Toyota Motor Corp. to Palm Inc. fire workers to reduce costs. APEC leaders warned that any attempt to shield home markets from overseas competition would only prolong the slump.

“There is a risk that slower world growth could lead to calls for protectionist measures which would only exacerbate the current economic situation,” they said. “Free market principles, and open trade and investment regimes, will continue to drive global growth, employment and poverty reduction.”

Statements of individual leaders, including Mexican President Felipe Calderon, reflected unease over the political transition in the U.S., where President-elect Barack Obama has expressed reservations about free-trade agreements.

Calderon warned Obama against trying to renegotiate the North American Free Trade Agreement, saying restricting commerce would only encourage illegal Mexican emigration to the U.S.

more