Talks in Honolulu ahead of a weekend summit of the Pacific Rim -- one of the world's fastest-growing regions -- were overshadowed by Europe's debt troubles that are sending shockwaves across the globe.
The annual gathering of the 21-member APEC -- hosted this year by U.S. President Barack Obama in his native Hawaii -- was billed as an effort to make progress on building a new free-trade area and advancing a "green" technology pact, steps that could foster global growth.
But a summit agenda that promises trade benefits that could take years to materialize will offer small comfort to global markets, reeling over the crisis in the euro zone, where Italy has overtaken Greece as the prime threat to stability.
Finance ministers laying the groundwork for the leaders' summit on Saturday fretted openly about what they see as Europe's failure to take more decisive measures to stem the euro zone crisis.
"It is not being dealt with forcefully," Philippines Finance Minister Cesar Pursimia told reporters in Honolulu, echoing the views of many of his Asia-Pacific colleagues.
Senior officials of the Asia Pacific Economic Cooperation reached consensus on the need for all member economies to bolster themselves against the potential spillover from Europe.
But there was no sign the summit of countries that account for more than half of global economic output would offer any concrete measures to help the euro-zone cope with its crisis.
APEC finance ministers were also expected to keep pressure on China over its currency, a U.S. Treasury official said. The issue has been a major irritant between Washington and Beijing, which has become increasingly assertive in a region where Obama now hopes to refocus U.S. attention.
OVERARCHING CONCERN: EUROPE
But the overarching concern at the summit will be getting Europe to put its fiscal house in order.
Australian Treasurer Wayne Swan urged unity among Asia-Pacific countries, saying every APEC economy had felt the "chill wind" of economic events in Europe as well as the United States, where the recovery has moved in fits and starts.
U.S. Commerce Secretary John Bryson said that while Europe was in trouble, Asian trade could still move forward. "We've had such strong exports to Europe and now with the European financial crisis those will come down," Bryson told Reuters.
"There's no reason to think we can improve meaningfully in Europe," but markets such as China, Malaysia, South Korea and others in the Asia Pacific region offer more promise, he said.
Just as last week's G20 summit was overshadowed by the euro-zone contagion, that crisis will also loom large over high-level meetings in Honolulu -- and the chances are low for any immediate steps that will reinvigorate the world economy.
Thursday's round of ministerial talks focused on opening markets between Asia-Pacific countries, which have almost 3 billion people and account for 54 percent of global gross domestic product.
Nine countries -- the United States, Australia, New Zealand, Vietnam, Malaysia, Singapore, Brunei, Chile and Peru -- are expected to say on Saturday they have reached the broad outlines of a proposed Transpacific Partnership (TPP) trade deal. Japan may also join, giving the pact greater heft.
Adding luster to the summit's trade agenda was the announcement in Geneva that Russia, an APEC member, had sealed its 18-year negotiation to join the World Trade Organization.
U.S. Secretary of State Hillary Clinton recently hailed the Obama administration's bid to refocus on Asia as signifying the relaunch of what she called "America's Pacific Century."
For Obama, who is winding down the costly U.S.-led wars in Iraq and Afghanistan, the annual APEC gathering is a chance to reassert U.S. leadership in an economically dynamic region where China poses a growing competitive threat.
The TPP pact, a possible template for an APEC-wide trade zone, would help inject the United States into the heart of Asia's regional trade architecture.
China has moved ahead with a series of multi-nation trade agreements throughout Asia and has flexed its military muscle in the South China Sea.
Chinese President Hu Jintao was among the first leaders to arrive on Thursday. Chinese officials have already expressed doubts about U.S. goals at APEC, including a green growth initiative that would cut tariffs on environmental goods and services, such as solar panels and wind turbines.
Tensions were further raised on Wednesday when the United States opened an investigation into whether China sells solar panels in the U.S. at unfair prices, irritating China. Its Commerce Ministry said the probe would jeopardize cooperation on energy issues.
Obama, who has called himself America's "first Pacific president," flies in on Friday and will meet Hu on the summit sidelines where aides say he will raise U.S. concerns that Beijing has not done enough to let its currency appreciate.
Yahoo.news
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