U.S. President George W. Bush will urge Group of 20 leaders at a Nov. 15 summit on the global economic crisis not to use it as an excuse for erecting trade barriers and scuttling free-market principles, senior Bush administration officials said on Wednesday.
"This summit and this process is not about discarding market principles or moving to a single global regulator," a U.S. official said. "We believe there is little support in Europe or elsewhere for empowering a single global authority to regulate all of the world's financial markets."
The official said organizers of the summit, to take place at the White House with the Bush administration's status now officially that of lame duck, were consulting President-elect Barack Obama's team about the possibility of attending.
European officials portray the Nov. 15 meeting, which brings key emerging-market countries like China, Brazil, India, South Korea and South Africa together with big industrial nations, as the beginning of a major overhaul of global financial architecture.
Earlier, an official said finance ministers and key aides will meet Nov. 13 in Washington to complete preparations for the leaders' summit two days later. The finance ministers will hold their own dinner at the Treasury department on Friday night while political chiefs dine at the White House before they all meet together on Saturday.
U.S. officials said the turmoil in financial markets shows "there needs to be some changes made," adding substantial reform already was under way and much of it could be done by countries themselves.
"It's important to collaborate together so that our policies are mutually reinforcing and not beggar-thy-neighbor," a U.S. official said, adding that agreement was possible on an "action plan" for putting into force near-term measures to increase market transparency and coordinate regulation.
The official made clear the Bush administration, which formally disbands on Jan. 20 when Obama is sworn in, will be staunchly free-enterprise to the end.
"The President believes it's important to bear in mind that as we work on these very important issues that our reform efforts will only be successful if they are based also on a common commitment to free-market principles … including expanded trade and increased capital flows," the U.S. official said. It was important "not to turn inward or to stifle innovation," he added.
Leaders from the International Monetary Fund and World Bank will attend the summit as will United nations Secretary-General Ban Ki-moon, in recognition of the global impact that reeling global markets have had on rich and poor, the U.S. official said.
French President Nicolas Sarkozy said on Monday he wants the summit, the first in a series, to take "swift, concrete decisions" on global financial regulation as well as the "definition of a roadmap for the coming weeks." One thing that must be decided, U.S. officials said, was when more meetings will occur and whether they will be sponsored by the G20 or some other forum.
