MercoPress. South Atlantic News Agency

APEC summit in Japan calls for regional free-trade zone, but gives no details

President Obama and Hu Jintao as I Korea dominated discussions in Yokohama

Leaders of the 21-member Asia-Pacific Co-operation (Apec) forum have pledged to move towards creating a regional free-trade area. The agreement was announced at the end of a two-day summit in Yokohama, Japan.

The move would link the world's three biggest economies - the United States, Japan and China. However, deep differences remain - chiefly between the US and China - over trade imbalances and currency distortions.

Washington wants to increase its own exports to the region, and believes China's cheap currency is a barrier to that goal. Chinese President Hu Jintao has said any change will only be made at Beijing's own pace.

In their final declaration, Apec leaders reaffirmed their “unwavering commitment to achieving free and open trade and investment in the region”. They also pledged to take “concrete steps toward realising a Free Trade Area of the Asia-Pacific”, but gave no timetable.

The declaration - entitled Yokohama Vision - also rejected any fresh barriers to trade and investment.

”We commit to take steps to roll back trade distorting measures introduced during the (financial) crisis.“

The document included a commitment to move toward more ”market-determined exchange rate systems“.

During the discussions President Obama said no nation should rely on exports to the United States for growth. Obama said countries with a large surplus must take steps to boost domestic demand - in an apparent reference to China and Japan.

Chinese President Hu Jintao said his country was trying to increase domestic consumption, but any currency adjustments would come gradually.

Addressing business executives in Yokohama, President Obama said the economic crisis had shown the limits of depending on US consumers and Asian exporters to drive growth.

”Going forward, no nation should assume that their path to prosperity is simply paved with exports to America,“ he said.

He added that healthy competition need not cause rifts between nations.

”There's no need to view trade, commerce or economic growth as zero-sum games, where one country always has to prosper at the expense of another.“

Taking the podium after Mr Obama, Mr Hu reaffirmed Beijing's commitment to gradual currency reform and balanced trade.

”China will continue making encouraging a balanced international balance of payments an important task in ensuring macro-economic stability,” he said.