08 September 2006 Treasury's Paulson says APEC should be relevant, results-oriented organization Washington -- Finance ministers must take an active role in confronting economic challenges common to all the members of the Asia-Pacific Economic Cooperation (APEC) forum, U.S. Treasury Secretary Henry Paulson says. "APEC needs to be a relevant and results-oriented organization," Paulson told the 13th annual APEC Finance Ministers Meeting in Hanoi, Vietnam, September 8. The treasury secretary called on APEC finance ministers to promote multilateral trade liberalization, particularly in the financial services sector. Services account for more than 50 percent of global gross domestic product (GDP), or the total output of goods and services, but only 20 percent of world trade, he said. Paulson noted that the World Bank estimates goods-and-services liberalization "could provide income gains in developing countries four and a half times the gains from goods liberalization alone." Another area in which finance ministers can make a difference is in helping to address global imbalances in the areas of trade and government spending. The Treasury Secretary said he and his counterparts discussed the importance of increasing the savings rate in the United States, the need for stronger domestic demand-led growth in Japan, other APEC members and Europe, and the value of flexible exchange rates in China and emerging East Asia. (See related article.) Paulson said he also highlighted the importance of using enforcement tools to respond to and combat growing threats to financial systems such as narcotics trafficking, organized criminal activities, terrorism and weapons of mass destruction proliferation. (See Terrorist Financing.) "We must act to prevent and combat threats to our security by establishing authorities that will financially isolate those engaged in illicit activities and ensure that they do not access the international financial system," he said. While in Hanoi, Paulson met with Vietnamese Prime Minister Nguyen Tan Dung and economic officials to discuss a range of bilateral issues, including the importance of open trade for both economies, Vietnam's pending accession to the World Trade Organization and permanent normal trade relations for Vietnam. Paulson also met with a group of Vietnamese entrepreneurs to talk about the challenges of doing business in a transitioning economy and participated in an event with Vietnamese business students. "Vietnam's economic success for this and future generations is largely in the hands of these individuals," the Treasury Secretary said, adding that he had "encouraged them to have the confidence and courage to continue steadily on the path of economic reform." For more information on U.S. policy, see Asia-Pacific Economic Cooperation (APEC) and Trade and Economics. The full text of Paulson's remarks is available on the Treasury Web site. (The Washington File is a product of the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)APEC Ministers Urged To Confront Common Economic Challenges
