Bush promotes free trade at Asia-Pacific summit in Peru

He implores nations to resist protectionism

Demonstrators protested against the Asia-Pacific Economic Cooperation summit in Lima. The banner says, ''APEC is hunger and unemployment. Bush go home.'' (Mariana Bazo/Reuters)

LIMA, Peru - President Bush yesterday called on nations to embrace free trade even as turmoil races through the world's markets, and leaders meeting to plan responses to the crisis pledged to avoid protectionism.

"One of the enduring lessons of the Great Depression is that global protectionism is a path to global economic ruin," Bush said at the annual summit of the Asia-Pacific Economic Cooperation forum, which represents 21 nations, including the United States, China, Japan, and Russia. "We refuse to accept protectionism in the 21st century."

Bush, on his final scheduled foreign trip before leaving office, is seeking to bolster support for his plan to tame the global economic crisis.

A week ago in Washington, he and other major world leaders backed a plan of economic stimulus mixed with improved oversight and regulation.

"Our nations must maintain confidence in the power of free markets," Bush told the business executives from the Pacific Rim nations, which account for more than half of global economic output.

"It's true the free-market system is not perfect," he said. "It can be subject to excesses and abuse. . . . Yet it is also essential that nations resist the temptation to over-correct by imposing regulations that would stifle innovation and choke off growth."

The president didn't have to twist many arms in this free-trade-friendly gathering, where a steady stream of officials spoke of the wonders of unfettered markets.

The leaders of the Asia-Pacific forum, the members of which account for half the world's economy, endorsed the declaration made Washington. They pledged not to implement protectionist measures for the next 12 months, no matter how punishing the global downturn becomes.

President Michelle Bachelet of Chile called renewed protectionism the "worst" that could happen, and representatives of Peru, China, South Korea, and others urged nations to resist trade barriers.

Demonstrators who say unrestricted free trade expands poverty were kept well away from the heavily guarded military complex and hotels where summit events are taking place.

Critics here say Peru's robust growth, spurred by exports of minerals and other commodities, has not trickled down to the working class.

That kind of criticism is one reason that President Alan Garcia of Peru, a committed free-trader and host of the summit, has seen his popularity ratings fall to about 20 percent.

Bush has long placed trade at the top of his economic priority list, boasting that the United States has free-trade agreements with 14 nations - compared with three when he took office nearly eight years ago.

He said he was disappointed that Congress had adjourned without passing pending agreements with Colombia, Panama, and South Korea.

During the Peru conference, Bush also called on allies to help secure a North Korean disarmament deal before he leaves office.

The White House announced that all nations engaged in the showdown with North Korea would meet in China in early December.

The United States is eager to attain an international agreement on how to verify North Korea's nuclear capabilities.

Bush met individually yesterday with three partners in the North Korean negotiations: Prime Minister Taro Aso of Japan, President Lee Myung Bak of South Korea, and President Dmitry Medvedev of Russia. He conferred Friday with President Hu Jintao of China about the issue.

The four countries those leaders represent, along with the United States and North Korea, make up the so-called six-party talks.

The current deal calls for North Korea to give up its nuclear weapons and weapons capability in exchange for aid and diplomatic concessions.

Demands for a written verification procedure for North Korea has stalled a final agreement on the disarmament plan.

The White House said the US partners were growing wary that all their work over North Korea might disappear without success soon. Starting Jan. 20, President-elect Barack Obama will decide how the United States engages North Korea.

Bush met with Medvedev at a time of tense relations between two former Cold War foes.

Russia opposed the US plans for a missile defense system in Europe, and the United States has said Russia lost international standing through its war with Georgia.

Bush and Medvedev said yesterday that they had maintained a rapport despite disagreements.

"I've tried to work hard to make it a cordial relationship so when we need to work together we can, and when we disagree we're able to do so in a way that is respectful to our two nations," Bush said.

Medvedev said the two countries would continue to keep lines of communication open.

The White House issued a statement yesterday celebrating the fifth anniversary of the Rose Revolution in Georgia, in which a pro-Western government came to power, as "one of the most inspiring chapters in the history of freedom." Press secretary Dana Perino said of the timing of that statement: "It was purely coincidence."

Material from the Associated Press was included in this report.