Asia-Pacific Nations Decry First-world Protectionist Policies

Some Asia-Pacific nations criticized U.S. and other developed world protectionism on Tuesday at a meeting aimed at spurring a global trade pact and revitalizing the global economy.

Thai Commerce Minister Pornthiva Nakasai, meeting her Asia-Pacific Economic Cooperation counterparts including the United States, China and Russia, said “buy local” campaigns had affected exports from some of the 21-member group.

“We are saying please don’t impose any more protectionist measures, as they have been hurting our exports,” Pornthiva told a media briefing after APEC opened two days of trade talks in Singapore.

Pornthiva said Australia and Indonesia brought up the subject of protectionism, while export-dependent Thailand and Taiwan echoed their comments, saying it was hurting agricultural products and automotive exports.

U.S. Trade Representative Ron Kirk’s response was that it was good that everyone was being frank, she said. “Buy American” provisions in the U.S. stimulus bill generally require public works projects funded by the bill to use only U.S.-made steel, iron and other manufactured goods. Other countries have also issued “buy local” policies.

World Trade Organization Director-General Pascal Lamy, also at the meeting, said this month that governments were unfairly blocking trade in response to the global downturn, hurting wealthy economies most and raising concerns about stimulus measures in both rich and poor nations.

Trade-dependent Asia-Pacific nations such as Thailand and Singapore saw their exports slump early this year but an improvement in credit markets, trade financing and demand have slowed the decline and led to hopes of recovery.

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Australia said before the talks that the best insurance against protectionism would be agreeing to a global trade pact.

“Trade stimulates growth, and what the world needs now, more than anything, is growth,” Australian Trade Minister Simon Crean told business leaders in Singapore. Lamy has estimated a Doha deal could boost the world economy by $130 billion.

Leaders of the major economies have called for a global deal on trade by next year, but negotiators say there is little chance of that until the United States signals its position on outstanding disagreements over agriculture and other issues.

The United States has given little indication of how the Obama administration sees the talks for a Doha deal evolving.

The Doha round, launched in the Qatari capital in 2001 to help poor countries prosper through trade, has been written off many times as WTO members squabbled over calls to cut tariffs and subsidies to boost commerce in food, goods and services.

Kirk last week emphasized the administration’s determination to enforce existing trade agreements to protect American jobs and labor standards — a sensitive issue as workers in rich countries fear such practices can put them at a disadvantage.

The trade minister of Indonesia, Southeast Asia’s biggest economy, told Reuters she was “cautiously optimistic” about a deal. “What we would like to see happen now is trade ministers from the capitals, the important ones, start giving direction,” Mari Pangestu said in an interview.

In the absence of a global trade pact, countries are pushing ahead with negotiations for bilateral deals. Thailand told Reuters on Tuesday it had concluded talks with Peru for a free trade agreement that it expected to sign in November.

World leaders will next look at progress in the Doha talks at a G20 summit in Pittsburgh in September.

(Additional reporting by Harry Suhartono; Editing by Kazunori Takada)