APEC members pledge to fight high oil prices, global imbalances

SINGAPORE, Friday (AFP) - Finance ministers from Pacific rim nations wrapped up a two-day meeting here Friday with a pledge to share responsibility to fight high oil prices and other impending risks to the global and regional economies.

Surging oil prices cast a long shadow over the 21-member Asia-Pacific Economic Cooperation (APEC) finance ministers’ two-day meeting here.

In a joint statement, ministers said members should be mindful of their individual responsibilities in addressing global imbalances such as the need for fiscal consolidation to increase savings in the United States, further structural reform in Japan and more flexibility in the exchange rate systems of developing countries.

“We note that global economic growth has moderated over 2005 but is still likely to remain robust despite high oil prices. Though growth in APEC regions is expected to ease in 2005, we observe that member economies are experiencing faster growth than the global economy,” the statement said.

It called for “adequate investment in oil production and refining capacity as well as technology transfer for energy conservation” to meet the challenge of soaring oil prices and called for a reduction in “demand-distorting fuel subsidies.”

Dialogue between oil producing and consuming countries should be strengthened, it added.

APEC’s 21 members consume more than half of global oil output and include four of the world’s five biggest oil importers — the United States, Japan, China and South Korea.

APEC members also “welcomed” the recent moves by China and Malaysia towards more flexible exchange rate systems.

Chinese Finance Minister Jin Renqin told a press conference China will stick to its “step by step” approach on reforming its currency system for the sake of not only China but also for the regional and global economies.

“We are a responsible government. To have the Chinese (yuan) stable within a certain band will be benficial to Chinese economic development and also to the economy in Asia and the world,” he said.