President Bush's Final Foreign Farewell

LIMA, Peru, Nov. 23, 2008 — -- President Bush took his final bow on the world stage in costume.

In Peru, Bush and the 20 other world leaders from nations that make up the Asian Pacific Economic Cooperation forum donned Peruvian ponchos made of soft baby alpaca wool at the of the 16th APEC summit, an annual gathering generally known more for its final "funny shirts" group photo than its substance.

But this year, beyond the smiles, the leaders face tremendous pressure to stem the worldwide financial crisis, something they optimistically believe they can accomplish in a year and a half.

"We are convinced that we can overcome this crisis in a period of 18 months," the leaders said in a statement. "We have already taken urgent and extraordinary steps to stabilize our financial sectors and strengthen economic growth."

In its final declaration, the group, which represents nearly half of the world's trade, vowed to resist the temptation to protect its own economies at the expense of everyone else. For at least one year, they agreed not to raise tariffs on imported goods and keep international markets flowing.

Bush: 'We Refuse to Accept Protectionism'

President Bush wants more: a broader international trade agreement to lower barriers and increase trade globally.

"I recognize I'm leaving office in two months," Bush said in a speech at the annual meeting. "But nevertheless ... we can send a message: We refuse to accept protectionism in the 21st century!"

A new trade deal would be a major breakthrough for the president's legacy -- and it's one that only he may be able to make. President-elect Barack Obama is hamstrung by his campaign promise to labor unions to keep American jobs from going overseas.

"This isn't a legacy that Bush has left him," said Grant Aldonis, former undersecretary for international trade. "He [Obama] has limited the political space within which he can pursue initiatives on trade."

Bush Soon Will Yield to Obama

James Baker, the former secretary of state and secretary of the treasury, is pushing for some joint action now to stop the financial bleeding.

"Nothing would do more to create confidence and eliminate the fear and anxiety that's out there, particularly in financial markets, than to see the incoming president and the outgoing president get together on some sort of a proposal or a program," Baker said on NBC's "Meet the Press."

All the APEC nations are also considering more infrastructure spending back home, but for Bush that's not an option. The next budget will be in a new president's hands.

On two occasions in Lima, he publicly joked about his upcoming "forced retirement."

Bush spent much of the summit on the sidelines, saying his goodbyes. But he also set the stage for his successor, meeting with Presidents Hu Jintao of China and Russia's Dmitry Medvedev -- two world leaders who will be key players in a Barack Obama presidency.

Summits for 2009 are already scheduled. President-elect Obama will have a scant few months in office before his first foreign travel, likely to Europe in early April. By then, he and many economists believe the financial crisis will be even worse.