The global financial crisis that may push several economies, including Canada's, into recession can be turned around in 18 months, according to the leaders of the 21 nations attending this weekend's APEC meeting.
The leaders added the declaration to a statement issued yesterday that outlined agreed-upon measures to stimulate the global economy, including a year-long moratorium on tariffs in an effort to promote freer trade.
"We are convinced that we can overcome this crisis in a period of 18 months," the 21 leaders said Sunday from Lima, Peru, as they wrapped up their two-day meeting.
"We have already taken urgent and extraordinary steps to stabilize our financial sectors and strengthen economic growth."
The leaders of the Pacific Rim countries also said they would send ministers to Geneva next month for meetings of World Trade Organization that are expected to address the current financial crisis.
A 12-point declaration with a blueprint for warding off a worldwide recession, in addition to other initiatives, was expected at the summit's close.
A preliminary draft leaked to The Associated Press indicated the nations are concerned about unstable food prices and support initiatives that combat a number of problems, from piracy to climate change.
Both Prime Minister Stephen Harper and President George Bush said that the 18-month line was added by host country Peru and is far to optimistic.
Harper concerned
In a speech to APEC delegates on Saturday, Harper warned that the current economic crisis mimics the turmoil of 1929, the year the Great Depression started.
Harper endorsed the decision to put off creating new trade barriers as an attempt to stop the worldwide economic slide.
"Removing protectionist barriers and easing trade restrictions was a big factor in ushering in this extraordinary era," Harper said, referring to recent years of strong economic growth. "We cannot allow ourselves to turn back."
Harper promised that Canada would keep its doors open to trade, avoid protectionist policies and provide financial stimulus to jumpstart the economy.
"We want to ensure that these actions - which are essential in the short-term - do not undermine the sound foundations of long-term economic growth," Harper said.
Harper began his work at the summit Friday by signing a free-trade agreement with Colombia.
The deal will allow for greater market access for Canadian exporters, especially for products such as wheat, barley, paper and heavy machinery.
With files from The Associated Press
