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EXCLUSIVE-UPDATE 2-APEC to keep stimulus policies, push for Doha

Published 11/02/2009, 10:05 AM

* APEC draft says economies not yet on stable footing

* Group economies to keep stimulus plans for durable recovery

* Finance ministers say no rush to fiscal tightening

* Draft calls for extra commitment to 2010 Doha trade deal

By Nopporn Wong-Anan

SINGAPORE, Nov 2 (Reuters) - APEC countries, including the United States, Japan and China, will keep up stimulus policies and push for a global trade deal next year as they seek to spur a lasting economic recovery, according to draft statements from the group seen by Reuters on Monday.

"We will maintain our economic stimulus policies until a durable economic recovery is secured," said a draft statement by the 21-member group's leaders, dated Oct. 31 and expected to be delivered after an Asia Pacific Economic Cooperation (APEC) summit in Singapore on Nov. 15.

World stocks slid on Monday to hug one-month lows, as investors fretted about the pace of an economic recovery and prepared for the eventual withdrawal of stimulative monetary policy.

Finance ministers from the APEC group said in a separate statement that there was no need to rush fiscal tightening, especially as credit markets were still recovering.

"Careful planning and timing withdrawal of extraordinary stimulus measures will help to avoid a double-dip recession," said the finance ministers in the draft seen by Reuters.

Finance ministers and central bankers from the Group of 20 will next gather on Friday to discuss progress in restoring global growth after the worst financial crisis in decades.

Analysts said APEC's draft statements were consistent with comments by policymakers in recent months and reflected the sentiment of investors.

"They are very afraid -- they don't want to withdraw stimulus plans prematurely," said economist David Cohen of consultancy Action Economics in Singapore.

Leaders of the 21 APEC economies said robust policy responses have helped set the stage for recovery, while rejection of protectionism has kept markets and trade open across the region.

However, multi-billion dollar stimulus packages by APEC governments have included "buy local" campaigns that have led to accusations of protectionism and trade spats.

FLEXIBLE FOR DOHA DEAL

APEC's leaders were concerned at the lack of substantive progress on concluding the round of world trade talks launched in Doha in 2001 and called for a deal next year, their draft statement said.

It said APEC was "ready to exercise all possible flexibility in order to accelerate the pace in negotiations".

"We instruct our ministers to work closely with the Director-General (of the World Trade Organisation) to evaluate, in specific terms, what needs to be done to conclude the Doha Development Agenda in 2010," said the draft.

WTO Director-General Pascal Lamy said last month the goal of signing a new global commerce deal in 2010 was out of reach unless countries accelerated their negotiations.

Lamy said the WTO's 153 members must turn vague discussions on the Doha round into real negotiations with concrete proposals laid down on paper.

On environment and energy, APEC emphasised a 2007 declaration of an aspirational target to reduce energy intensity in the region by at least 25 percent by 2030, while pledging commitment to a "good agreement" at global climate talks next month.

"We believe that global emissions will need to peak over the next few years, and be reduced to 50 percent below 1990 levels by 2050," said the draft by leaders of APEC, which includes some of the world's top polluting nations.

APEC has 21 member economies: Australia, Brunei, Canada, Chile, China, Hong Kong, Indonesia, Japan, South Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, Philippines, Russia, Singapore, Taiwan, Thailand, United States and Vietnam. (Editing by Neil Chatterjee and Alex Richardson)

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