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Press Briefing by Assistant to the President for International Economic
Affairs Daniel Price and Deputy Press Secretary Gordon Johndroe on the
President's Trip to APEC Summit
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For Immediate Release Office of the Press Secretary November 19, 2008

Press Briefing by Assistant to the President for International Economic
Affairs Daniel Price and Deputy Press Secretary Gordon Johndroe on the
President's Trip to APEC Summit James S. Brady Press Briefing Room

˙˙Press Briefings


2:32 P.M. EST

MR. JOHNDROE: Good afternoon. We'll do a briefing on the President's trip
to APEC and the meetings he has on the margins there. I'll start, and then
Dan Price, Assistant to the President for International Economic Affairs,
and sherpa for the APEC summit, as well as the summit last weekend here in
Washington, will then run through the agenda for the summit itself.

So let me start with the President's schedule. Early Friday morning, the
President will leave Washington and travel to Lima, Peru, for the APEC
summit. He arrives mid-afternoon. Later on Friday, he will meet with the
President of the People's Republic of China. The President's meeting with
President Hu Jintao offers an opportunity to review U.S.-China relations on
the eve of the 30th anniversary of diplomatic relations, which will be in
January.

President Bush has built a relationship with the Chinese leader that is
cooperative, candid, and constructive, as evidenced by the positive role
China played at the G20 meeting last weekend here in Washington. They will
discuss, of course, the international financial situation, as well as our
desire to have a successful conclusion of the Doha Round this year.

The President appreciates China's leadership on the North Korea
denuclearization issue, and they will discuss the importance of an early
six-party talks heads of delegation meeting to reach final agreement on
North Korean verification. They will also likely discuss a number of global
issues, including Iran, Burma, Zimbabwe, Sudan.

And as the President has always done in all of his meetings with Chinese
leaders, the President will discuss issues of human rights and religious
freedom, including the ongoing dialogue between Beijing and the Dalai Lama.

On Saturday morning, the President will go to the Ministry of Defense
Convention Center, where he will deliver remarks to the APEC CEO Summit.
Following those remarks, the President will return to his hotel. He will
have bilateral meetings with both the President of the Republic of Korea,
as well as with the Prime Minister of Japan.

These meetings are an opportunity to underscore the strength of our
alliances in Northeast Asia that are fundamental to our Asian security
posture, and to peace and stability in the region. The President will
express appreciation for the highly constructive roles both nations
continue to play in the six-party talks, and will discuss with them ways to
move that process forward.

The President will also use both of these meetings as an opportunity to
thank these two leaders for the positive role that both Japan and South
Korea have played in Iraq and Afghanistan, and to discuss the way ahead on
global counterterrorism efforts, as well. He'll have a chance to review the
progress made at the recent G20 meeting here in Washington, and those
discussions will also include the importance of trade. And they will
discuss regional security and talk about regional architecture for
Northeast Asia and for the Asia Pacific region as a whole.

Then in between the two bilaterals, all three leaders will meet together in
a trilateral. I expect the focus of that meeting will be North Korea.

Moving on to Saturday afternoon, the President will then attend the APEC
Leaders Retreat I at the Convention Center. After that, he will attend the
Leaders Dialogue with the APEC Business Advisory Council -- ABAC --
something he's done I believe at all of the APECs he's attended. Later that
evening, the President and Mrs. Bush will attend the gala dinner, also at
the Convention Center.

On Sunday morning, the President will meet with the President of Peru. It
will be an opportunity for the two Presidents to reaffirm the U.S.-Peru
relationship, which is the strongest it has been in years. Both leaders
share a vision of governing based on the importance of democracy, economic
openness, the fight against extremism and intolerance, and they are both
committed to extending the benefits of democracy to all segments of
society.

The two can be expected to discuss efforts to meet the goal of bringing the
U.S.-Peru FTA into force by the end of the year. The President will likely
share with President Garcia his views on the recent summit that took place
here in Washington. And I expect the two leaders to discuss Latin American
regional issues, including ways to extend the commitment of democratic
government and open markets throughout the hemisphere.

Following that -- we're now into mid-Sunday morning -- the President will
attend APEC Leaders Retreat II, and then participate in the much
anticipated APEC official photograph at the Ministry of Defense Convention
Center, then participate in the APEC Final Declaration Ceremony, also at
the Convention Center.

Let me just say that although there's not a firm time yet, it's very likely
that President Bush will meet with the President of the Russian Federation,
Dmitry Medvedev. I expect they will discuss the ongoing situation in
Georgia, the global financial situation, as a follow-up to the Washington
summit that President Medvedev attended, as well as missile defense and
other strategic issues.

The President and Mrs. Bush will return to Washington on Sunday evening
somewhat late.

Let me note something on Mrs. Bush's travel. Tomorrow, Thursday, Mrs. Bush
will travel to Panama City, Panama. The primary purpose of her visit is to
announce the U.S.-Panama Partnership for Breast Cancer Awareness and
Research. She will note -- let me see -- I note that Mrs. Bush has
previously traveled to the Middle East and Mexico to announce similar
partnerships.

On Friday, she travels to Pisco, Peru. Pisco is one of the towns hardest
hit in the August 2007 earthquake that struck Peru's central coast. There
she will tour the San Clemente Health Center and participate in a tour of a
adobe housing reconstruction project. She will meet up with the President
in Lima on Friday afternoon.

With that, let me turn it over to Dan and then we will both be available to
answer questions.

MR. PRICE: Thank you, Gordon. Good afternoon, everyone. I wanted to go over
the principal priorities of the United States heading into APEC, and how we
see the discussions likely to evolve.

Essentially we have six priorities, which I will enumerate and then go back
and explain each one. The first is advancing the work begun here in
Washington at the G20 leaders meeting on financial markets reform and the
global economy. The second is deepening regional economic integration. The
third is enhancing competitiveness of the APEC region. The fourth is
addressing a range of human security needs that cover the ground from food
and commodity issues to counterterrorism, to disaster response. And the
last is energy security and climate change.

Q That's five.

MR. PRICE: You're right, that is five. (Laughter.) I miscounted in my head.
Thank you. Let's start at the top with financial markets reform and the
global economy.

As you may know, nine of the 21 APEC members were at the G20 leaders
meeting here in Washington. We will, together with our colleagues, be
working to expand support among APEC members for the declaration adopted
here in Washington. So we will be seeking to broaden out the support among
the APEC membership for continued efforts to stabilize the financial system
and restore economic growth; for the common principles for reform
identified in the Washington declaration; for the commitment to free market
principles, including the rule of law, open trade, and investment, and
competitive economies that will be vital to ensuring the successful
implementation of the reforms being pursued; and finally, a rejection of
protectionism and a commitment to refrain for a 12-month period from
raising new barriers to trade and investment.

Finally in this area we will be seeking to broaden support among APEC's
membership for concluding this year an agreement on modalities -- that is
the fundamental framework relating to industrial and agricultural goods --
so that we can lay the groundwork for the eventual completion of a Doha
Round that actually increases trade flows in agriculture, industrial goods,
and services.

On the second priority, that is deepening regional economic integration, it
is important that we bear in mind that the APEC economies together account
for 55 percent of world GDP, nearly half of all world trade, and 41 percent
of the world's population. The Asia Pacific is a vital and growing economic
partner for the United States. U.S. goods trade with APEC economies grew
from $1.2 trillion in 2001 to nearly $2 trillion in 2007. So trade with
APEC economies today constitutes nearly two-thirds of all U.S. goods trade.

The United States would like to build on this growing relationship by
taking concrete steps that help move us to the long-term goal of a free
trade area of the Asia Pacific. APEC has completed 14 sets of so-called
model measures corresponding to chapters in a free trade agreement, and
these model measures would, if implemented in regional FTAs, promote
high-quality agreements. And we have made significant progress on some of
the remaining chapters.

This year also, APEC concluded a study of the commonalities and differences
among the 30 FTAs, the 30 free trade agreements between and among APEC
economies that will hopefully provide a road map going forward, and APEC
agreed to launch an investment facilitation action plan to improve
investment climates in APEC member countries, and increase investment flows
within the region.

For our part, the United States will be explaining to our APEC partners the
U.S. decision to join the negotiations of what is called the Trans-Pacific
Strategic Economic Partnership -- or TPP. This is with Singapore, Chile,
New Zealand, and Brunei. The TPP is a very high standard free trade
agreement and it could provide a foundation for achieving this long-term
goal of a free trade area of the Pacific.*

From the U.S. perspective, TPP will help ensure that U.S. exporters are
able to benefit from a broader regional agreement that allows them to
compete against exporters that are presently able to take advantage of this
array of preferential trade agreements in the region that do not include
the United States.

It's important to note that in 1980, there were 22 agreements involving
Asia Pacific countries or economies. In 2008, there are 152 agreements in
force; 21 are completed and awaiting implementation, and 72 are being
negotiated. I realize that's a lot of numbers. The important takeaway is
that it is critical for the United States to help lead the development of
an inclusive regional economic architecture in the Asia Pacific because
some of those efforts, indeed many of the efforts that I've just described
within those vast numbers, are focused on Asia-first, or Asia-only
agreements.

Since the United States announced its decision to participate in TPP in
September of this year, a number of additional countries have expressed
interest in potentially participating. These include Australia, Peru, and
Vietnam. We will be consulting with stakeholders and with Congress as these
countries move along their decision-making path as to whether they wish to
participate.

The third element was enhancing competitiveness of the APEC region. There
are a number of initiatives underway there. I just want to highlight two
here. Those of you who will be going on the trip, you'll hear about more at
the briefings at the end of each day. The two that I wish to highlight now
are the actions taken by APEC members to reduce trade-related transaction
costs -- that is the cost of moving goods across borders and clearing them
through customs. Between 2001 and 2006, APEC reduced those transaction
costs in the region by 5 percent. We collectively have pledged to reduce
those costs by an additional 5 percent by 2010.

The second issue under competitiveness, the U.S. and APEC are working very
closely together to bridge the digital divide. This year, APEC telecom
ministers pledged to achieve universal broadband access in the region by
2015. In addition, APEC will focus on the development of regulatory
frameworks to promote telecom market competition and liberalization.

The next priority -- this is addressing human security needs. And here we
will expand participation in APEC's food defense pilot program, which helps
to prevent and prepare for and respond to threats to the food supply. And
Peru has announced that it will be the first participant. We will also be,
and have endorsed the launch -- that is, "we," APEC, have endorsed the
launch of something called the Partnership Training Institute Network, to
strengthen food safety training. It will include experts from industry,
government, and academia. Our FDA and the University of Maryland will serve
on the steering group to develop a pilot program for 2009.

Finally, in the area of energy security and climate change, we hope that
APEC will continue its important work in supporting the negotiations under
the U.N. Framework Convention and continue supporting the work of the major
economies process. We expect a discussion by the APEC members on the need
to meet energy needs through enhancing the functioning of energy markets
that promote trade in energy goods and services, as well as foster an
improved investment climate for the development of energy resources. And,
as last year, we can expect continued discussion and work on the area of
efficiency.

Finally, I would note that the U.S. will be hosting APEC in 2011. Singapore
is hosting APEC next year, 2009; Japan in 2010; and the United States in
2011.

Why don't I stop there and open it up for questions.

Q One for each of you, actually. Dan, would you -- you see a reason why
APEC wouldn't sign on en masse to the G20 declaration, or the G20 statement
of principles at this meeting?

(Telephone rings.)

MR. JOHNDROE: They're calling to sign on now. (Laughter.)

Q Is that what you expect, that at this meeting the APEC countries, the 21
will sign on to the G20?

MR. PRICE: I don't want to prejudge what it is they will do. I will say
that certainly one of our priorities, and I believe this would be a
priority of the other eight countries who are here who are part of APEC, we
would seek to broaden the support for that declaration by having it
endorsed by the other members of APEC.

Q And, Gordon, can you shed a little bit more light on the Russia meeting?
You said that -- did you mean to attach it to Sunday afternoon, or is it
just at some point between arrival and departure?

MR. JOHNDROE: At some point between arrival and departure I expect the two
leaders will meet.

Q And what -- how would you -- could you take the temperature of
U.S.-Russia relations right now? Medvedev came out and said he wants to
build a strategic partnership under an Obama administration. Some might say
a strategic partnership with some friction is what you have now. What's the
-- what's your take on the status of U.S.-Russia relations?

MR. JOHNDROE: Well, you know, I think we had a good declaration coming out
of Sochi earlier this year, and -- but we clearly disagree with Russian
behavior when it comes to what took place in Georgia. And we also have,
obviously, a different position when it comes to missile defense. And I
think any discussions that President Bush has, or that any American
officials have with Russian officials, makes it clear that missile defense
is designed to protect all of us -- Russia, the United States, Europe --
from missile launches from rogue states.

And so there's a few areas where we have some disagreements. Overall, I
think everyone agrees that a strong and good U.S.-Russia relationship is in
everyone's interest. But we have some issues that we're going to need to
work through.

Q The uncertainty about the meeting is both sides want to meet, you guys
are just trying to nail down a time and place, or was there some hemming
and hawing about an actual sit-down?

MR. JOHNDROE: No, scheduling issue at this point.

Q The first priority that you -- among the subjects to be discussed that
you mentioned was Georgia. And you mentioned it again that this is a
subject of disagreement. But the picture of that conflict, the picture what
actually happened has shifted -- dramatically, I would say -- shifted in
the U.S. and other Western press in recent weeks, where people have now
moved much closer to what originally was the Moscow explanation of what
happened, much further away from what Washington said was the cause and the
substance of what happened. This is -- has your approach to all of this
changed in any way?

MR. JOHNDROE: Andre, I don't necessarily agree with your statement. There
are a number of reports out there. It's clearly an issue where both sides
had -- took some unnecessary steps on the ground in those days. We need to
work through those issues. But right now what we support is getting more EU
monitors in there and continue to support the territorial integrity of
Georgia.

And so I just disagree. I don't think that people are moving to a different
position on it.

Q Two questions. What, besides the G20 -- getting more people to sign on, I
want to know what is the effect of that? Why is that so important, or what
will happen if that happens? And secondly, besides that, what are the other
commitments that you're looking for -- like the other top two commitments
that you're looking for at the summit?

MR. PRICE: Let me take the first one first. As you look through that
Washington declaration, I think it becomes pretty clear why it's important
to have that broadly shared. One, there is a commitment to reform of
financial markets -- not just our own, but the reform of financial markets
of all those who have subscribed to that declaration. So I think the --

Q Just more nations doing the same thing -- is that what you're saying?

MR. PRICE: Yes. You say that in kind of a way that kind of trivializes it.
It's actually -- I don't know if that --

Q I didn't mean to. (Laughter.)

MR. PRICE: It's actually a pretty big deal to have --

Q Why is it a big deal?

MR. PRICE: -- the 20, and then the remaining 12 APEC members subscribe to
those principles that, one, recognize that it is only through adherence to
core free market principles that we will be able to bring about the needed
reform to the financial system, as well as restore global economic growth;
to have these additional countries also, themselves, rejecting
protectionism, rejecting any impulse to turn inwards, agreeing not to erect
trade barriers and, as well, committing themselves to the completion of a
modalities agreement; and finally, to participating in the reform of
international financial institutions.

I would say that is very significant because the G20 represents a certain
global consensus. As that consensus broadens out, as other members of the
global community -- significant members represented by the non-G20 members
of APEC -- subscribe to those same principles, it gives them more power and
I think underscores the likelihood and enhances the likelihood that we will
all succeed in accomplishing those shared goals.

And your second question?

Q Is that the top priority, do you think, at the summit?

MR. PRICE: That is one of the top priorities. I would say the other top
priority is enhancing regional economic integration.

Q Okay, those two things.

MR. PRICE: Yes.

Q Can you talk a little more broadly about the concerns that you expect to
hear from particularly leaders from Asia about what the long-term effects
of this global financial crisis are going to be on trade? Aren't they
worried about sort of an unraveling of their relationship that has
developed across the Pacific between the U.S., in particular, and a lot of
the Asian economies?

MR. PRICE: I don't know that I would call it concern about "unraveling" the
relationship. Rather I think the concerns fall into a couple of different
categories.

The first is, as I've said, there is a concern that we've heard expressed
about nations turning inward, of focusing solely on themselves and taking
steps that are disintegrative, if I can use that -- putting up trade
barriers. So I think it's going to be important to these countries to
reinforce the message of free trade, of global integration. I think that
would be a principal concern that we can expect to hear.

The second is the potential drying up of trade finance. And here, as you'll
recall in the declaration signed at the summit over the weekend, there was
an acknowledgment of the importance of ensuring adequate resources for
trade finance. I think there will also be a more generalized concern about
resources for developing countries, which really has two parts: One,
ensuring that the IMF, the World Bank, and other multilateral development
banks are adequately resourced to assist developing countries get through
this crisis, number one. And the second is a concern that nations that have
made commitments on bilateral aid will fall down on those commitments, and
as you heard our President at both the development summit and the recent
summit, underscoring the importance of countries meeting their promises.

And if I could point out one other thing, John. In the declaration that was
just adopted this past weekend, there was a very interesting development
because that declaration not only called on countries who have made
commitments to honor those commitments, it called upon both developed and
developing countries to make aid commitments consistent with their
capacities and role in the global economy. And I think that was an
important acknowledgment that development assistance is no longer the
purview of a handful of developed nations alone, but a shared
responsibility of the major economies, as well.

Q How much of this is a farewell for President Bush on the world stage? Do
we expect any kind of reflective remarks from him at some point about his
interaction either with this group or other overseas summits over his
years? And do we expect any kind of farewell from the other world leaders
to him?

MR. PRICE: Let me take that in pieces. This is a serious meeting; it is not
a farewell. I'm often asked the question -- I was asked this before the G8,
I was asked this question before this most recent summit: Is this going to
be a real meeting -- lame duck, low approval ratings. I think that
completely misses the point.

This President has long advocated a core number of principles and policies
that have now attracted broad support in the global community. And these
principles and policies have their own gravitational pull. They include the
power of free trade and free markets to better the lives of people and
create economic opportunity. They include the obligation of those countries
who are blessed with the means to do so to help the poor and the vulnerable
and the sick, and stressing as well the importance of countries honoring
their commitments. And finally, they include helping promote transparent,
accountable, stable democracies based on the rule of law and responsive to
the needs of their people.

And the President's fidelity to these principles and their power to command
international support doesn't depend on poll numbers and doesn't vary with
the election cycle. This President has advocated these concerns -- open
markets, accountability, addressing poverty and disease -- at G8 meetings,
at APEC meetings, and at the recent Washington summit. And in each setting,
the President has garnered the support of other leaders.

So I don't think this is a farewell in the sense as I understood the
question, but rather an opportunity for the President to continue to carry
forward an affirmative agenda.

Do I expect other leaders to take note of the fact that this is his last
APEC? Yes. Indeed, a number of leaders at the meeting over the weekend who
aren't going to APEC noted that and, indeed, thanked the President for his
leadership. And at one point there was, in fact, sustained applause for the
President's leadership, following remarks by Prime Minister Brown.

Q My next question of the general financial economic crisis -- not only in
the U.S., around the world. I would be interested to learn whether there
are intergovernmental talks about help for automakers -- transatlantic, but
also in APEC countries, because at least in my country there is a
discussion now how the German government can help German automakers -- for
example, Opel, which is the daughter of GM -- without running the risk that
intervention, subsidies will be used inside GM for the U.S. market.

MR. PRICE: I understand the question. I'm not aware of any such talks, or
talks on any other specific sector. Rather the talks have focused on
ensuring continued economic growth and restoring global prosperity.

Q Thank you, sir. Two questions, one for you and one for Gordon. Sir, could
you tell us your sense about the likelihood of the agreement on the WTO's
modalities and how do you see the possibility that members to reach
agreement on that by the end of this year?

The second one is for Gordon. Gordon, in regard to the Dalai Lama, what can
President Bush tell President Hu Jintao at the time when the Dalai Lama is
in a very difficult position to proceed the dialogue with Chinese
counterpart? Thank you.

MR. PRICE: You know, I'm not going to assign percentages to your question.
I will say this, however -- if the leaders of APEC and the leaders of the
non-APEC members of the G20 follow through on their avowed declaration,
then we can do it. And this has a couple of parts. It's not just the
expression of political will to do it; it is the recognition that the very
countries with the most at stake in the trading system are around the APEC
table and were around the table at the Washington summit. If those
countries together say they want to do it and are willing, as the
declaration says, to make the positive contributions necessary, then we can
get it done.

Concluding a modalities agreement is not the work or the responsibility of
any single nation. It will require those with the greatest stake in the
global trading system to make some hard choices and to take it over the
finish line.

MR. JOHNDROE: I think the President will repeat what he has often said to
the Chinese leadership with regarding the Dalai Lama. One, the Dalai Lama
is a man of peace. He is not seeking independence for Tibet. And the
President will continue to encourage Beijing to reach out to the Dalai
Lama, to the Dalai Lama's team, and to continue the dialogue that they have
been engaged in.

I'm sorry, back behind you, Andre.

Q My question is to Gordon. You said about the meeting between Hu Jintao
and President Bush, that there were possibility of having all the six-party
head of delegation meeting. And the U.S. has been pushing for it and China
has been hesitant to have six-party talks. Is there any reason for that?
And do you expect that will change after the summit meeting?

MR. JOHNDROE: I'm not sure if I would ascribe any sort of hesitancy to any
one particular party. I would just say that this will be an opportunity for
the President to discuss the North Korea denuclearization issue with the
President of China, the President of South Korea, and Prime Minister Aso of
Japan -- an opportunity for all the leaders to talk about this, try and
move the issue forward, have a heads of delegation meeting, and formalize
the verification protocol so that we can move forward with the North
Koreans on that issue.

Okay, thank you, all, very much.

MR. PRICE: Thank you.

END 3:12 P.M. EST

* Asia-Pacific
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