Apec countries baulk at regional free trade agreement

8.15am

SANTIAGO, Chile - Asia-Pacific leaders have baulked at full free trade between themselves, failing to back a plan for a free trade deal covering the entire region.

The Asia-Pacific Economic Cooperation (Apec) leaders' summit in Chile shunned a proposal from the region's business leaders to start a scoping study into an Apec-wide free trade agreement.

In the official declaration, read by Chilean leader Ricardo Lagos, the proposal for the scoping study was only noted, with no indication that it may be taken up by Apec's 21 economies in the near term.

Instead, Mr Lagos said Apec -- which includes Australia and New Zealand -- committed the organisation to fighting hard at the World Trade Organisation (WTO) level to further free trade at the global level.

Apec leaders said agriculture and services, both areas that have slowed down the current round of world trade talks, were core issues the WTO had to address.

The leaders also backed the ascension of both Russia and Vietnam to the WTO promptly.

Although much of the communique focused on trade, it also took in efforts to boost security and noted recent terror attacks including the bombing of the Australian embassy in Jakarta.

"We recalled the heinous acts and terrible consequences of terrorism as tragically manifested in Belsan (in Russia) and Jakarta during this past year," the communique stated.

"We reaffirmed our determination to advance the prosperity and sustainable growth of our economies and the complementary mission of ensuring the security of our people."

In a first, Apec leaders also moved into the public health area, backing efforts to control HIV-Aids and SARS across the region.

The communique was signed off not long after leaders posed for the annual class photo in a traditional Chilean poncho.

The traditional clothing is a feature of Apec, started in Bogor, Indonesia, where leaders posed in a batik shirt.

Prime Minister John Howard has two further bilateral meetings with the leaders of Malaysia and Indonesia before returning to Australia later today.

- AAP