U.S. eyes trade deals

By Alex Frew McMillan
CNN in Shanghai

SHANGHAI, China (CNN) -- The United States is chasing several free-trade deals during the APEC forum in Shanghai, U.S. Trade Representative Robert Zoellick said Thursday. including agreements with Singapore and Chile.

Such deals are key, he said, in a year that may well see U.S. trade with the rest of the world shrink for the first time since 1982.

As well as seeking deals with Chile and Singapore, the U.S. is exploring the possibility of a trade deal with Australia, and looking also for other one-on-one deals.

"I'm making a personal effort with Indonesia, because trade is an important part of President Megawati's stated intentions," Zoellick said, after finishing two days of talks with the foreign and trade ministers of the 21 APEC members.

Analysts suggest that the United States is extremely keen to see Indonesia's battered economy pick back up.

That would give a vital boost to new leader Megawati Sukarnoputri's chances to govern the world's largest Muslim nation.

Some experts say Indonesia may again tumble into turmoil, as it did under ousted president Abdurrahman Wahid, if its creaky business prospects collapse.

The U.S. targets -- Indonesia, Australia, Singapore and Chile -- have joined the United States in sending their top trade ministers to Shanghai for this week's Asia Pacific Cooperation Forum.

America is keen to build on its recent success finalizing a trade deal with former foe Vietnam, another APEC member.

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Such bilateral trade agreements are as much a focus of APEC as the overall commitment the group again made Thursday to free trade.

American trade fell 2.4 percent the first six months of 2001, compared to 19 percent growth the same time last year. So that is likely to end in the red for the first time in almost 20 years this year.

The Asia-Pacific region is a vital one if that is to turn around.

The U.S. does $700 billion in business with the 20 other APEC states. That's around two thirds of total U.S. trade.

Zoellick, the top representative of the world's biggest economy when it comes to international business, noted the importance of striking tighter links with its partners.

"The U.S. slowdown wounds all the countries attending," he said.

Coupled with Japan entering recession and many other countries feeling the pain of a synchronized slump, this week's gathering comes at an important time, both to bolster confidence and trade.

"We have important work to do," he said.

Trade can't heal all wounds -- Zoellick noted the terror attacks amounted to a strike against citizens from 60 countries and left an uncalculated toll.

But freer trade can do its part to boost confidence, he said.

His was one voice in the chorus singing a common refrain of this week's talks: optimism, cooperation, redemption.