Business Leaders Call for G20 to Restore Market Confidence

Singapore, 1 April 2009 - Maintaining free and open markets and restoring market confidence are the two most critical and immediate tasks to be addressed, say business people across the Asia-Pacific.

In an official letter to the G20, APEC's Business Advisory Council (ABAC) insists on the "urgent need for Leaders to implement bold policies with the objectives of restoring market confidence, increasing consumer demand and stabilising financial markets to ensure that trade continues to flow freely."

"The global economy is already heavily weighed down by a lack of confidence," explains ABAC Chair, Teng Theng Dar. "Any increase, actual or perceived, in protectionist measures will only serve to weaken market confidence and lead to a lock down of world trade."

At the end of last year, both APEC and the G20 denounced barriers to investment and trade in goods and service. Nonetheless, some recently-implemented policy changes have raised questions of possible "backsliding" against these commitments.

Among ABAC members, the pressure for governments to implement protectionist policies remains a primary concern. In fact, the group has shared plans to "establish a mechanism for monitoring compliance with the key elements of the G20 undertakings to address the present financial challenges and compliance with WTO commitments in the context of the spectre of rising protectionism."

ABAC urges APEC Leaders attending the G20 Meeting to remain faithful to their commitment to the APEC Leaders' Declaration made in Lima, and to "seek the same commitment from the rest of the G20 Leaders." In addition, it insists that G20 Leaders should seek the conclusion of the World Trade Organisation (WTO) Doha Development Agenda (DDA) as a means to counter protectionist inclinations.

ABAC advises Leaders of the Asia-Pacific Economic Cooperation (APEC), providing specific recommendations to improve the business and investment environment. Nine of the heads-of-government attending the G20 meeting represent APEC member economies.