Asia - Pacific leaders pledge to refrain from new trade barriers

U.S. President George W. Bush, Chinese President Hu Jintao, Japanese Prime Minister Taro Aso and other members of the 21-nation Asia-Pacific Economic Cooperation group (APEC), said they would refrain from raising trade barriers over the next 12 months.

Leaders of the APEC, 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.”

They also supported overhauls of the International Monetary Fund, or IMF, and the World Bank at a time when more countries need emergency bailouts to avert economic devastation.

CHINA TO THE RESCUE?

In Lima, Chinese President Hu said the Asian powerhouse would work alongside the international community to strengthen cooperation and protect international markets.

China has been a major driver of the world economy as its rapid expansion fueled demand for raw materials. But with so many troubled countries looking to China to ease their financial woes, Beijing had been wary of taking a leading role.

"China is within the scope of its abilities taking major efforts to address the financial crisis," Hu said in a speech to business leaders.

This included providing support for liquidity for domestic financial institutions and coordinating macroeconomic policy with other countries.

APEC members also said they strongly supported recommendations that the Group of 20 leading economies made last week in Washington. Nine of APEC's members belong to the G20.