U.S. trade policymakers also may be headed for disappointment in their desire to win strong APEC support for an ambitious new round of trade- liberalization talks under the World Trade Organization. While there has been no dramatic turn toward protectionism among the East Asian countries in economic crisis, Malaysian officials may speak for others in the region when they express skepticism about the benefits of additional global trade liberalization for still-reeling developing countries. Fortunately perhaps, trade liberalization is not the only item on the APEC agenda. Both the ministerial and the leaders' meetings will review the steps that members are taking individually and through APEC to restore financial stability and growth in economically stumbling countries as well as APEC's contribution to ongoing efforts to reform and strengthen the international financial system. Mr. Clinton, Mr. Obuchi and their counterparts reportedly will address both the advantages of globalization and the risks posed by financial instability.
Electronic commerce is another important agenda item.
APEC ministers also will discuss the need to erect more extensive social safety nets throughout Asia since many people are being affected by economic dislocations. Should the EVSL trade-liberalization effort founder, APEC may suffer a significant loss of institutional momentum. If the organization is seen as unable to deliver progress on trade and investment liberalization, its purpose and value increasingly may be called into question. Then, the issue will be whether modest initiatives and statements of solidarity are sufficient to maintain the relevance of the still-maturing Asian Pacific institution. The views expressed in this report are those of the author and do not necessarily represent those of the Japan Economic Institute.