KYOTO, Japan: Finance ministers from the Asia-Pacific region agreed Saturday to avoid using their currencies as trade weapons and embrace steps to shrink global trade gaps, joining the swelling chorus of countries calling for deeper cooperation to safeguard world growth. The two-day gathering of finance chiefs from the 21-member Asia-Pacific Economic Cooperation (APEC) forum wrapped up ahead of twin summits of global leaders next week in Asia that will focus on boosting a global economy yet to fully recover from the 2008 financial meltdown. APEC members said in a statement they will move toward a system in which exchange rates are determined more by markets and the underlying strength of economies and refrain from devaluing their currencies to gain a competitive advantage. They also promised to step up cooperation and “pursue the full range of policies conducive to reducing” excessive and unsustainable trade imbalances. Countries which import more than they export should boost domestic savings and protect nascent economic recoveries, the statement said. Those which export more than they import, including many Asian countries, should reduce their reliance on overseas demand and adopt reforms to bolster their home markets. The APEC agreement broadly echoed promises made by finance ministers and central bank chiefs from the Group of 20 nations two weeks ago at a meeting in South Korea and highlights growing efforts by countries to ensure the global economy builds a stronger foundation for more balanced growth after the crisis. Leaders from the G-20 major advanced and emerging economies - including President Barack Obama, Chinese President Hu Jintao and Japanese Prime Minister Naoto Kan - will meet in Seoul, South Korea, next Thursday and Friday. About half will then travel to Yokohama, Japan, for the APEC leaders' summit starting Nov. 13. The economy will be a top priority as countries seek ways to form a united front against threats faced by the fragile global recovery. Growth is slowing around the world, and currency tensions have led to new strains between governments.
