APEC leaders say no to protectionism, yes to Doha

The 21 leaders endorsed last weekend's agreement by major world economies to resist domestic pressures to protect industries, while ensuring that small and medium-sized companies have enough credit to stay afloat.

"We strongly support the Washington Declaration and will refrain within the next 12 months from raising new barriers to investment or to trade in goods and services (and from) imposing new export restrictions," leaders of the Asia-Pacific Economic Cooperation forum said in a joint declaration.

They also pledged to reach agreement next month on the outlines of a World Trade Organization pact that collapsed in July after seven years of negotiations. Concern over the global financial crisis injected new urgency into the so-called Doha round of trade talks.

The leaders called for greater APEC participation in the International Monetary Fund and other multilateral lenders. Japan said last week it was ready to lend up to $100 billion to the IMF, but China has so far resisted entreaties to dig into its $1.9 trillion in reserves.

Delegates said, however, that there was little incentive to propose more concrete action without the support of Obama, who takes office in January and did not send representatives to Lima.

"The next U.S. administration must assume leadership in a very firm manner--not just for Americans but for the whole world," Mexican President Felipe Calderon said in a speech before heading into closed-door meetings that produced the resolution.

Even people who work for the White House's outgoing occupant, George W. Bush, acknowledged that tough issues such as a stalled U.S.-South Korea free-trade agreement would likely have to wait.

"I think the very understandable concern of these foreign governments is, will the new administration do some sort of policy review," Dennis Wilder, senior director for Asian affairs at the National Security Council, told reporters.

Obama has said one area he wants to review is the U.S. free-trade agreement with Canada and Mexico. But Calderon said any attempt to renegotate the 15-year-old pact would create "not more markets and more trade, but fewer markets and less trade."