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APEC Leaders Challenge Europe on Subsidies
Saturday November 19, 11:43 pm ET
By Rohan Sullivan, Associated Press Writer
APEC Leaders Challenge Europe to Drop Farm Subsidies to Advance Free Trade Talks


BUSAN, South Korea (AP) -- President Bush and other Pacific Rim leaders ended their annual economic summit Saturday with an indirect challenge to European countries to help revive global free-trade negotiations by cutting their hefty farm subsidies.
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The 21 members of the Asia-Pacific Economic Cooperation also addressed the threat of a possible bird flu pandemic, pledging to be open about disclosing outbreaks, boost surveillance and build a register of experts that can advise countries on combating the disease.

But it was the trade issue that dominated the two-day APEC summit, just three weeks before a key World Trade Organization meeting in Hong Kong.

The leaders, who clearly blamed Europe for the deadlock in remarks on the sidelines of the summit, stopped short of naming the continent in their statement on trade. Officials said it was too politically sensitive.

"We urge all other WTO members, and especially those that have the largest stake in the global trading system and derive the biggest benefits therefrom, to show the flexibilities needed to move the negotiations forward," the leaders' statement said.

Unblocking disputes over agriculture is the key to progress, the statement said.

Australia and Canada wanted the statement to name Europe as the main obstacle in the WTO, but other leaders objected because they did not want to single out any country or region, officials said.

"You don't have to name names," Philippine Foreign Secretary Alberto Romulo told The Associated Press, adding it was quite obvious who the statement was directed at.

In his weekly radio address Saturday, Bush called it a strong statement: "Asian Pacific leaders are working with us toward the goal of a freer and fairer global trading system, which will benefit America and other nations around the world."

About 1,000 anti-globalization protesters attempted to march to the meeting venue, a cupcake-shaped villa on the South Korean coast named "Nurimaru," or "Pinnacle of the world." Security forces blocked them, and the protesters dispersed peacefully after several hours. On Friday, police clashed with activists from a crowd of about 4,000 protesters who failed to disrupt the meeting.

Although trade dominated the conference, bird flu was also a major issue.

At least 67 people have died from the H5N1 strain of bird flu since 2003, most of them in Vietnam, according to the World Health Organization. Most human cases have been traced to contact with sick birds, but experts warn the virus could mutate into a form easily passed between people and spark a worldwide pandemic.

Amid concern poorer countries are badly prepared to deal with bird flu, Australia immediately pledged $73 million to regional and international initiatives to fight the disease, including a computer simulation exercise. Japan promised nearly $3 million.

Malaysian Prime Minister Abdullah Ahmad Badawi said, however, the leaders rejected a plan for wealthier countries to contribute to a fund that would pay compensation to farmers with infected poultry flocks, encouraging them not to hide outbreaks.

"If poor farmers know they will lose income they will be very reluctant to" report outbreaks, Abdullah told a news conference. "They will not be ready to cooperate. If they are to do it, (there) must be some means of compensation."

Counterterrorism, intellectual property, energy security and other issues were dealt with in a separate statement. The agreements were announced after the leaders posed for a photo in traditional South Korean silk overcoats called durumagi.

While it wasn't included in the two statements formally adopted by the leaders, summit host South Korean President Roh Moo-hyun said the leaders had urged that further progress be made at international talks seeking to convince North Korea to abandon its nuclear programs.

Roh said resolving the issue of North Korea's nuclear programs would spread peace and economic cooperation throughout the region.





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