Asia-Pacific leaders agreed to start establishing a free trade area in the world's fastest growing region with China warning that global economic recovery was far from certain and protectionism was rising.

The weekend summit followed hot on the heels of a meeting of leaders of G20 advanced and emerging countries whose vague agreement gave little sense of a united approach to preventing further economic crises.   

The troubles still facing the global economy was underscored by the likelihood that Ireland will have to seek emergency funding because of deepening debt concerns.   

"As a result of the concerted action of the international community, the world economy is slowly recovering. Yet the recovery is neither firmly established nor balanced, and there exist significant uncertainties," Chinese leader Hu Jintao told leaders of the 21-member Asia-Pacific Economic Cooperation (Apec).   

He said protectionism had risen notably, adding: "We should emphasise sustainable growth, which includes not only resource and environmental sustainability but also sustainability of fiscal, monetary, trade and industrial policies, and the reduction of macroeconomic volatility and risks."    

In a statement at the end of the Apec summit, leaders agreed to refrain from competitive devaluation of currencies and that it was critical to establish more balanced and sustainable growth -- the same as agreed at the G20 summit on Friday.   

They also agreed to start work on a vast regional free trade area linking the world's three biggest economies -- the United States, China and Japan -- with some of the world's fastest-growing economies who together account for over 40 percent of global trade.    

But the goal of balanced growth is proving elusive given deep divides among advanced and emerging economies that were papered over at a G20 summit in Seoul.   

The cracks were on display in the Japanese port city of Yokohama, where Washington and Beijing returned to their contradictory positions on trade and currency.   

The United States argues that the global economy can only recover if its own economy is on the mend, which requires a surge in exports. It has singled out China and its strong yuan as being a major barrier to that goal.

US President Barack Obama, at the start of the Apec gathering on Saturday, warned countries such as China against relying too much on exports for growth.   

Hu countered that Beijing was committed to exchange rate reform, but that it would be gradual.
   
The United States contends that China's currency is undervalued, giving it an export advantage. Beijing argues the US Federal Reserve's easy-money policy is aimed at weakening the dollar to boost exports and could destabilise other economies.  - Reuters