ASIA PACIFIC leaders representing almost half the world's population yesterday undertook to create the biggest ever global free trade zone, starting with the elimination of tariffs on computers, memory chips, telecommunications and other information technology by the end of the century.
The summit of 18 leaders of the Asia Pacific Economic Co operation (APEC) forum endorsed a Philippines action plan for a single Pacific Rim economy among developed nations by 2010 and developing countries by 2020. On a cliff top lawn in the former US naval base at Subic Bay, their host, President Fidel Ramos of the Philippines, read a joint declaration calling for "substantial, concrete, measurable and sustainable results" to translate APEC's free trade goals into reality.
The meeting also achieved a marked lowering of international tensions in the region after a weekend of intensive diplomacy in bilateral meetings. Most significant were those between President Clinton and President Jiang Zemin of China, who agreed to hold state visits, and between Mr Jiang and the Japanese Prime Minister, Mr Ryutaro Hashimoto, who lowered the temperature in a bitter dispute over a group of islands in the China Sea.
"We have deepened the spirit of community in the Asia Pacific region," Mr Ramos told reporters. "The region has a bright future." Over a pre summit dinner on Saturday evening, Mr Clinton lobbied hard for zero tariffs on information technology - a $1 trillion industry for the US - by 2000. US officials claimed that he made an impact.
The declaration hardened up earlier support offered by APEC trade ministers on Saturday. It said: "Recognising the importance of information technology in the 21st century, APEC leaders call for the conclusion of an information technology agreement by the WTO ministerial conference that would substantially eliminate tariffs by the year 2000."
APEC leaders will be lobbying the European Union at the WTO (World Trade Organisation) ministerial conference in Singapore to join in the plan. Mr Clinton wanted the use of the word "completely" rather than "substantially" but the US Trade spokesman, Mr Jay Ziegler, said: "Substantially eliminate is tradespeak for zero."
Many Asian nations, including China, have protecfionist economies, but China's President said the world's most populous country would pursue the free trade plan.
"Because of the differences in the levels of economic development in the member economies, it is very difficult for the liberalisation in the field to be pushed forward in accordance with a timetable," Mr Jiang said.
However, he promised China would cut import duties to an average 15 per cent by 2000 after reducing them to an average 23 per cent this year.
The Americans played a dominant role at the fourth summit of APEC, which includes the US, China, Japan, Canada, Australia Brunei, Chile, Hong Kong, Indonesia, Japan, Malaysia, Mexico New Zealand, Papua New Guinea, the Philippines, Singapore, South Korea, Taiwan and Thailand.
At a parallel business forum there were 173 US business representatives, four times as many as any other country. Opponents of APEC representing people's movements, trade unions, women's groups and non governmental and religious organisations held an alternative forum in Manila and issued a declaration opposing APEC plans as "servicing a corporate agenda at the expense of the human rights, dignity and well being of the peoples of this region".
A motorcade of 500 gaily decorated jeeps was prevented from reaching the summit site 80 km north of Manila and at least five people were injured yesterday in a clash with vigilantes supporting APEC near Subic Bay. Dressed in Filipino Barong shirts, the 18 leaders took three hours to pose for photographs and three hours to finalise the declaration on creating a free trade and investment zone with no customs posts or visas for business travellers.
However, the agreement depends on consensus and there are no sanctions for any country opting out.
Some developing Asian countries, in particular Malaysia, are reluctant to move too quickly, as its Prime Minister, Dr Mahathir bin Mohamad, made clear. APEC is expected to admit Vietnam at its next annual summit in Vancouver.
The joint declaration was read out by President Ramos at the end of the summit, standing in line with the other leaders. He said they had:
. launched the implementation phase of APEC's free and open trade and investment agenda;
. delivered business facilitation measures;
. agreed to advance common goals in the World Trade Organisation;
. developed ways to strengthen economic and technical co operation, and
. engaged the business sector as a full partner in the APEC process.
He declared: "Our collective achievements of sustained economic growth, increased employment and regional stability are the result of our shared commitment to growth oriented policies, the broadest participation in the regional and global economy, and an environment of stability and security.