06 November 2001

Greenwood Says APEC Helped Strengthen Anti-Terror Coalition

Speaking before the Senate Committee on Foreign Relations November 6, C. Lawrence Greenwood said if he were confirmed as the U.S. Coordinator for Asia-Pacific Economic Cooperation (APEC), he would be able to continue working "to advance America's interest by creating a more prosperous and secure world."

Greenwood acknowledged that APEC was primarily focused on free trade and investment, but he stressed that U.S. political goals were reached through the forum as well.

"As the first major international meeting after the September 11th terrorist attacks, the Shanghai APEC Summit on October 21 played a critical role in helping strengthen the coalition against terrorism and restore confidence to flagging regional economies," Greenwood said.

Furthermore, he explained, APEC's promotion of financial market reforms and pro-competitive regulation have "profound political implications, for rewarding individuals based on their efforts rather than political influence, not only yields more economic growth, but also leads to more political choice."

"Prosperous and democratic trading partners in turn make the United States more prosperous and secure," Greenwood continued.

Greenwood said of the 25 years he has spent in the U.S. Department of State's Foreign Service, he has devoted most of the last 16 years to working on Asia and trade issues.

Following is the text of Greenwood's remarks, as prepared for delivery:

Mr. Chairman and Members of the Committee: I am honored to appear before this committee today to seek confirmation of President Bush's nomination of me as APEC Coordinator with the rank of Ambassador. I am grateful for the confidence the President and Secretary Powell have placed in me and, if confirmed, look forward to the opportunity to continue to work with you and your staff to advance American economic interests in the Asia-Pacific region.

Mr. Chairman, this hearing could not be more timely. In spite of the pressures of fighting the war against terrorism, President Bush's bold decision to go to Shanghai to meet with Asia-Pacific Leaders two weeks ago was a clear sign of American leadership in the Asia-Pacific region. It was also a signal of our commitment to the Asia-Pacific Economic Cooperation (APEC) group and its agenda of free trade and investment.

As the first major international meeting after the September 11th terrorist attacks, the Shanghai APEC Summit on October 21 played a critical role in helping strengthen the coalition against terrorism and restore confidence to flagging regional economies. APEC Leaders issued a strong statement condemning the attacks and pledging coordinated action in a number of specific areas to help apprehend the perpetrators and prevent further terrorist acts. The statement was particularly significant for an organization whose highly diverse members account for more than half of world GDP and one-quarter of the world's Muslims, more than the Middle East and North Africa combined.

APEC Leaders also helped restore confidence to a shaky global economy by aggressively calling for the launch of a new trade Round and strengthening APEC's tools for accelerating the pace of trade and investment liberalization within the region. I am proud to have played the role of U.S. sherpa at those meetings.

At the same time the Shanghai meetings were blazing new trails, they also built on 11 years of solid APEC work that has contributed to the success of the world's fastest growing region. Thanks in part to APEC's persistent efforts to promote market-oriented policies, the benefits of free and open markets are now nearly universally recognized throughout the region (if not always observed in practice), and applied tariff levels are among the lowest in the world. APEC is helping streamline regulations and harmonize standards, with significant savings for business. Indeed, APEC has an exceptionally close relationship with business, which both provides input into the work of APEC and runs many of APEC's programs. APEC is also building human capacity to assure that the benefits of the global economy are more widely spread in the region through programs that strengthen education, support small business, and combat infectious disease.

However, more needs to be done. Regional and world growth is slowing and the formula for economic success is changing. More market-opening and reform is needed. There is a particular need to strengthen financial systems and restructure corporations -- indeed, one of the region's greatest challenges is the massive reallocation of capital that economies must undertake in the coming years to create healthy banks and companies. Mexico, next year's host and the first Latin American member to chair APEC, has useful lessons in undertaking this transformation.

With U.S. leadership I am confident that APEC will play an even greater role than in the past to promote sound policies such as trade and investment liberalization, financial market reforms, and pro-competitive regulation, that the region so badly needs. These are economic policies, but with profound political implications, for rewarding individuals based on their efforts rather than political influence, not only yields more economic growth, but also leads to more political choice. Prosperous and democratic trading partners in turn make the United States more prosperous and secure.

That is in fact the goal I have worked for during the past 25 years in the Foreign Service -- to advance America's interest by creating a more prosperous and secure world. I have served in Asia and Africa, and in my two tours in the Economic Bureau in the State Department have negotiated with officials from every continent. I have devoted the bulk of the last 16 years of my career to Asia, particularly Japan, where I have had the satisfaction of working on nearly all the major trade issues between the world's two largest economies over the past decade-and-a-half. During those years I also had the privilege of working extensively on APEC matters.

I appreciate this opportunity to exchange views and seek your advice. I look forward to answering any question you may have. Thank you.