    [Weekly Compilation of Presidential Documents Volume 44, Number 47 (Monday, December 1, 2008)]
    [Pages 1447-1451]
    [Online from the Government Publishing Office, www.gpo.gov]

    <R04>
    Remarks at the Asia-Pacific Economic Cooperation Business Summit in Lima

    November 22, 2008

        Gracias, senor. [Laughter] What he forgot to say, Secretary Rice, is
    that he went to Notre Dame. She is a great supporter of Notre Dame. And
    thank you for having me. Laura and I are delighted to be back in your
    country.
        This is my second trip as President. I have been looking forward to
    it. And I appreciate the opportunity to come and discuss the state of
    the financial situation with such an august group. Thank you for making
    the Asia-Pacific region a vibrant part of the world.
        I believe it is important for the world to recognize, and for our
    country to recognize, that the United States is a Pacific nation. And

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    over the past 8 years, I have made it a priority--I made APEC a
    priority. I've been to every single APEC summit. I want to send a clear
    signal that it's in our Nation's interest that we engage actively and
    consistently with the nations of APEC.
        My first international trip after September the 11th, 2001, was to
    an APEC summit in Shanghai. My first trip overseas after my reelection
    in 2004 was to the APEC summit in Chile. And now that I'm headed to
    retirement--[laughter]--my last trip as President is to APEC here in
    Lima.
        This summit comes at a serious time during economic turmoil. And I'm
    looking forward to our discussions. It is--also comes at a time of
    unprecedented cooperation. A week ago in Washington, you might have
    heard that I had the honor of hosting a summit in what will be the
    series of international summits to address the financial crisis. I
    didn't believe we could solve all problems in one meeting, but I did
    believe it was important for us to host the initial summit to get it
    started, to lay the foundation for successful--for meetings.
        I also didn't believe that the meeting ought to be with kind of a
    handful of countries. Some suggested, keep the meeting small. I didn't
    agree with that. And that's why we invited 20 leaders, including 8
    members of APEC, because I believe developed nations and developing
    nations needed to be sitting at the same table to have an honest,
    fruitful dialog. After all, nations in Asia and Latin America now
    contribute more to the world economy than ever before. Nations are
    feeling the painful effects of the financial crisis; I understand that.
    And so all of us need to be involved in the solution. And we'll discuss
    this during our APEC meetings here, starting today.
        At the summit, leaders from around the world sent a powerful message
    of unity and determination. We agreed on principles and actions to
    modernize the financial structures of the 21st century. There's a
    recognition that while our economies have changed, the financial
    structures that we are dealing with were primarily written in the 20th
    century. We believe in transparency and integrity in the markets that
    will make sure that firms and financial products are subject to proper
    regulation and oversight.
        We agreed that the world's financial authorities must improve
    cooperation, that governments must keep their promises to the developing
    world. One point I'll make this morning at the APEC summit is to say
    that the United States is committing--committed to improving social
    justice, and we will not let this economic turmoil prevent us from
    helping nations educate their people, provide good health care, feed the
    hungry, and deal with diseases like HIV/AIDS and malaria.
        We agreed that we must reform the International Monetary Fund and
    the World Bank to better reflect the important role of developing
    nations. And we agreed to keep our markets open and firmly reject
    protectionism. All these steps are essential to rebuilding confidence in
    our financial systems. Yet the only way to regain strength in the long
    term is sustained economic growth. And among the most powerful engines
    of that growth are the businesses and workers and entrepreneurs of the
    Asia-Pacific region.
        A few decades ago, a statement like this would have seemed
    unimaginable. Many Asia-Pacific economies were mired in poverty; their
    governments pursued backward economic policies. Then leaders started to
    make bold decisions by opening up their markets, by welcoming investment
    and trade, and by tapping the potential of the private sector. The
    results have astonished the world.
        In the midst of all this turmoil, it's important to remember what
    has taken place as we chart our future. The APEC region's share of the
    global economy has grown nearly 55 percent. Isn't that interesting? When
    we meet today in Lima, Peru, about 55 percent of the total economy--
    world's economy will be at that table. In a single generation, the
    percentage of East Asians living in poverty has plummeted from nearly 80
    percent to 18 percent. We're witnessing a dramatic shift of history, as
    the center of the world economic stage moves from west to east, from the
    Atlantic to the Pacific.
        Some view the rise of Asia-Pacific with suspicion and fear; America
    doesn't. The United States welcomes the success of emerging economies
    throughout the region. We welcome the new hope that comes when people

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    escape poverty and join a confident middle class. We welcome new buyers
    for our products and new investors for American enterprise. We welcome
    new competition that leads our own workers and businesses to be more
    efficient. In an interconnected global economy, the gains of any advance
    the interests of all. So over the past 8 years, America has engaged this
    vital region more closely than ever before.
        Continuing that engagement is especially important during the times
    of economic strain. The policies of free enterprise that lifted up so
    many in this region can help chart a path to recovery for the whole
    world. That's what's important for people to know. That which enabled us
    to be successful in the past must be used to help us chart a more
    hopeful future for tomorrow. With confidence in our ideals, we can turn
    the challenge we face today to an opportunity and lead the way toward a
    new era of prosperity for the Asia-Pacific and beyond.
        So I want to talk today about how to do that, and I want to focus--
    and I think we ought to focus our efforts on three great forces for
    economic growth: free markets, free trade, and free people.
        First, our nations must maintain confidence in the power of free
    markets. Now, I know in the wake of the financial crisis, free markets
    have been under very harsh criticism from the left and from the right.
    It's true the free market system is not perfect. It can be subject to
    excesses and abuse. As we've seen in recent months, there are times when
    government intervention is essential to restart frozen markets and to
    protect overall economic health. Yet it is also essential that nations
    resist the temptation to overcorrect by imposing regulations that would
    stifle innovation and choke off growth. The verdict of history is
    unmistakable: The greater threat to prosperity is not too little
    government involvement in the market, it is too much.
        Over the decades, the free market system has proved the most
    efficient way and the just way of structuring an economy. Free markets
    offer people the freedom to choose where they work and what they want;
    offers people the opportunity to buy or sell products as they see fit;
    gives people the dignity that comes with profiting from their talent and
    their hard work. Free markets provide the incentives to lead to
    prosperity: the incentive to work, to innovate, to save and invest
    wisely, and to create jobs for others. And as millions of people pursue
    these incentives together, whole societies benefit.
        No region of the world demonstrates the power of free markets more
    vividly than the Asia-Pacific. Free markets helped Japan grow into the
    world's second largest economy. Free markets helped South Korea make
    itself one of the most technologically advanced nations on Earth. Free
    markets helped Chile triple its economy and cut its poverty rate by more
    than two-thirds over the past two decades. And last year, free market
    policies helped make Peru's economy the second fastest growing in APEC.
        Secondly, our nations must keep our commitment to free trade. When
    nations open their markets to trade and investment, businesses and
    farmers and workers find new buyers for their products. Consumers
    benefit because they have more choices and better prices. Entrepreneurs
    get their ideas off the ground with funding from anywhere in the world.
        Trade is seen as controversial in some places, but here in the Asia-
    Pacific region its benefits are beyond doubt. Trade transformed the
    economies of the ``Asian Tigers''--Singapore, South Korea, Hong Kong,
    and Taiwan--into global powerhouses. Trade fueled the rise of a new
    generation of ``Tigers''--nations like Malaysia, Indonesia, Thailand,
    and Vietnam. And in the most dramatic case of all, trade helped lift
    China out of isolation and poverty and into three decades of rapid
    economic growth and closer engagement with the world.
        Expanding trade and investment has been one of the highest
    priorities of my administration. When I took office, America had free
    trade agreements in force with only three nations. Today, we have
    agreements in force with 14, including China [Chile], * Singapore, and
    Australia. We have agreements that will soon take effect with three more
    countries, including Peru. We've concluded agreements with Colombia,
    Panama, and

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    South Korea. And it is extremely disappointing that the United States
    Congress adjourned without passing these three agreements. And I urge
    all those who support free trade to continuing pressing the case for the
    Congress to pass free trade agreements with Colombia and Panama and
    South Korea.
        * White House correction.
        I just had a chance to have a cup of coffee with President Uribe. He
    is a strong leader. He's a good friend. And our Congress and our
    Government must never turn our back on such a friend as Uribe.
        In addition to negotiating these free trade agreements, my
    administration supported the accession of China, Taiwan, and Vietnam
    into the World Trade Organization. We're negotiating bilateral
    investment treaties with China and Vietnam. We're discussing similar
    agreements with Taiwan, Indonesia, and Russia.
        These steps have brought benefits to America, and they brought
    benefits to our trading partners. Since I took office, America's trade
    with the world has grown from $2.5 trillion to $4 trillion, an increase
    of nearly 60 percent. Trade with Chile and the United States has more
    than doubled. Trade between Peru and the United States has more than
    doubled. And trade between China and the United States has more than
    tripled. Overall, America's trade with APEC nations now accounts for
    nearly two-thirds of our trade in the world.
        Greater economic integration in the Asia-Pacific advances the
    interests of all. So earlier this year, America began discussions on a
    new regional free trade agreement with Brunei and Chile, New Zealand and
    Singapore. This agreement has the potential to open up new opportunities
    across the region. And we welcome other APEC members to join, and we
    appreciate Australia and Peru's recent announcements that they will
    join. Eventually, this agreement could be the foundation of something
    even more promising, a free trade area of the Asia-Pacific, where goods
    and services and capital flow across borders without barriers.
        The nations in this region must also continuing to work down--must
    continue to work down--continue working to break down trade barriers at
    the global level. We have an immediate opportunity to do so through the
    Doha round at the WTO. One of the enduring lessons of the Great
    Depression is that global protectionism is a path to global economic
    ruin.
        At our summit in Washington last weekend, leaders from around the
    world expressed strong support for completing Doha. Isn't that
    interesting? Over 20 nations at the table, from all different kinds of
    backgrounds, expressed solidarity with the idea of completing Doha. And
    now we've got to put those words into action. I recognize I'm leaving
    office in 2 months, but nevertheless, this administration will push hard
    to put the modalities in place so that Doha can be completed, and so we
    can send the message: We refuse to accept protectionism in the 21st
    century.
        The third great force for economic growth in this region is the
    limitless potential of free people. As the business leaders in this room
    understand, the greatest resource any country has is the creativity of
    its citizens. That's what economists call human capital. And the best
    way to unleash that resource is, is to build healthy, educated, and
    democratic societies.
        One requirement of any free and prosperous society is an accountable
    and effective government. The United States launched the Millennium
    Challenge Account to invest in nations that fight corruption, pursue
    wise economic policies, and invest in the health and education of their
    citizens. Today, Millennium Challenge programs support some of the
    world's most promising developing nations, from Indonesia to the
    Philippines to Peru. This initiative demonstrates a larger truth:
    Whether it leans left or right, any government that is honest with its
    people, that exists to serve the people, that advances social justice
    and desires peace, will have a partner in the United States of America.
        America is helping build--helping governments lift the daily burdens
    that hold their people back, such as hunger and ignorance and disease.
    We're cooperating with APEC nations to adopt better farming practices
    and build up local agriculture markets. We're partnering with leaders to
    defeat the AIDS epidemic in places like Papua New Guinea and Vietnam.
    We're supporting countries like Indonesia that invest in basic
    education.

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    We're committed to these efforts. And as I said earlier, we'll be
    committed to these efforts regardless of the ebb and flow of the
    markets, and our partners can be confident that the compassion agenda of
    the United States of America will continue.
        Ultimately, the only way for a nation to realize its full potential
    is for its people to live in freedom; it includes both economic and
    political freedom. When people are free to profit from their abilities,
    they prosper. When people prosper, they demand more liberty in other
    areas of their lives. And we have seen this story unfold throughout this
    region. To continue freedom's momentum, the United States and other free
    nations are taking practical steps to support young democracies through
    the Asia Pacific Democracy Partnership. We recognize that democracies
    develop at their own speeds, consistent with their own cultures. But
    when people experience the dignity and the opportunity that freedom
    brings, they never turn back. I've told people a lot, since my
    Presidency, this truth: I believe there is an Almighty. And I believe a
    gift of that Almighty to every man, woman, and child on the face of the
    Earth is freedom.
        As we look to the future, the tasks facing our nations are no doubt
    demanding. Recovering from the financial crisis is going to take time.
    But we'll recover, and in so doing, begin a new era of prosperity.
        The nations of APEC have faced tests before. We have risen to meet
    them together, and we will do so again. Over the past 8 years, we've
    taken measures to protect our people from terror and the proliferation
    of weapons of mass destruction. We've responded to natural disasters.
    We've worked to prevent the spread of potential pandemic diseases like
    avian flu and SARS. We've worked to confront climate change and usher in
    a new age of clean energy. We're standing for a Korean Peninsula free of
    nuclear weapons and with a Burma free of repression.
        Above all, we can be confident in the future of this region because
    we know the spirit of its people. And I've seen it firsthand. When I
    attended my first APEC summit in Shanghai, just a few weeks after
    September the 11th, 2001, I said that America would always remember the
    signs of support from our friends in the region. I remember the American
    flag flying from every firetruck in Montreal, Canada. I remember
    children kneeling in silent prayer outside our Embassy in Seoul. I
    remember baseball players in Japan observing moments of silence. I
    remember a sign handwritten in English at a candlelight vigil in Beijing
    that read, ``Freedom and justice will not be stopped.''
        The bonds of unity we felt then remain today, and they will always
    remain. Long after this crisis has passed, the United States of America
    will stay engaged in this region. We will continue working with our
    partners to build an Asia-Pacific where people can work and worship and
    trade in freedom, where children grow up with hope and pursue their
    dreams, and where thriving, prosperous nations continue to inspire the
    world.
        Thanks for letting me come by. Que Dios le bendiga. God bless.

    Note: The President spoke at 9:48 a.m. at the Ministry of Defense
    Convention Center. In his remarks, he referred to Ricardo Rizo Patron de
    la Piedra, vice president, Cementos Lima, who introduced the President;
    and President Alvaro Uribe Velez of Colombia.