APEC vows to avoid mishaps

APEC vows to avoid mishaps

Amid a backdrop of weakening global trade and slower growth in the region, the leaders of 21 Pacific-rim economies pledged to implement prudent policies to maintain stability at the APEC Summit in Nusa Dua, Bali, on Tuesday.

As the leaders wrapped up the summit, they declared the need to strengthen macroeconomic policies and work together to promote sustainable and inclusive growth in the region.

"We will implement prudent and responsible macroeconomic policies to ensure mutually reinforceable growth, to maintain economic and financial stability in the region and prevent a negative spillover effect," said the leaders' joint declaration.

The need for a sound policy was recognised amid fresh concerns over the state of the US economy, following a budget impasse that disabled some government functions in the world's largest economy.

Unsound budget policies have caused a global spillover effect as growth in the US economy is predicted to contract.

US President Barack Obama's absence at the summit, due to the impasse, to some extent affected the progress of the Trans-Pacific Partnership (TPP) negotiations, all the members of which are APEC countries.

His absence also paved the way for China, Russia and Japan to assert their influence in the region.

Aside from concerns over policy mishaps, the leaders also agreed to guard against pressure to raise new trade and investment barriers.

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