MercoPress. South Atlantic News Agency

Bush promises “strong dollar”; US to push for more markets in Pacific.

United States president George Bush pledged full support for a “strong dollar” policy adding that “we expect the markets to reflect the true value of the currency” and “countries need to be mindful that we expect fair trade”.

This Wednesday President Bush begins a week long visit to Asia where he expects to raise the issue during talks particularly with Japanese and Chinese leaders. Japan periodically intervenes in money markets selling yens in an effort to keep the US dollar-yen exchange rate at a level which helps export sales. China on the other hand since 1994 has a virtual fixed parity with the US dollar equivalent to 8,28 yuans, which some economists estimate could be artificially undervalued up to 40%, thus promoting strong overseas sales. "I'm for a strong dollar policy. We've had a strong dollar policy in this administration" insisted president Bush whose administration has been accused of preferring a weaker currency to stimulate the economy and limit the widening current account deficit. This speculation has seen the Euro steadily advance against the US dollar in recent months and is currently in the range of 1,18 greenbacks to the EU currency. Mr. Bush has also been under strong pressure at home where layoffs in the manufacturing sector are estimated to have totalled 2,7 million in the last three years, mainly as a consequence of Asian competition. "Currencies must reflect economic activity, fiscal and budget policies, potential for growth and long term viability" recalled president Bush who will be participating in the Asia Pacific Economic Forum in Bangkok from October 20 to 23.

US to push for more markets in Pacific

US Trade Representative Robert Zoellick will press the leaders of the Asian Pacific Economic Cooperation Forum with the purpose of "advancing in the opening of markets", according to a release made public this Monday. Mr. Zoellick is scheduled to participate October 17/18 in the APEC ministerial meeting to be held in Bangkok, Thailand, previous to the presidential summit. The US Representative made it a point to underline the importance of trade liberalization decisions following the recent failure of the World Trade Organization meeting in Cancun, Mexico. "APEC has proved an important vehicle to advance in trade liberalization, and after Cancun these regional meetings have become useful to discuss how to follow this path and progress", said Mr. Zoellick. "In regions with a robust trade like the Pacific we shall continue to explore all opportunities. I'm looking forward to discuss with my colleagues ways to stimulate regional and world economic growth which we all need if we want to create jobs and promote prosperity". Mr. Zoellick also pointed out that the US was advancing with bilateral trade agreements, while pressing for a global agreement in the framework of WTO. "United States will be discussing with APEC partners how to better advance in the opening of markets by working with the Doha Development Round agenda and with APEC". Mr. Zoellick finally said that in recent months "President Bush signed free trade agreements with Singapore, Chile, and we're now in negotiations with Australia".