G20 sees need for 'dialogue,' fails to defuse trade war threat

22 March, 2018, 01:38 | Author: Darnell Patrick
  • SLOVENIA-ECONOMY-CURRENCY

The Buenos Aires meeting of finance ministers and central bank governors of the world's 20 biggest economies was meant to discuss a brightening economic outlook, the future of work, cryptocurrencies like Bitcoin, and corporate tax avoidance.

"We need to be prepared to act in the USA interest, again, to defend free and fair, reciprocal trade", he said in a press conference after the talks, adding that there was always a risk that others would reciprocate.

"Strong fundamentals, sound policies and a resilient worldwide monetary system are essential to the stability of exchange rates, contributing to strong and sustainable growth and investment", the draft communique said.

It also said G20 finance ministers stood by an agreement reached by their leaders in July a year ago in Hamburg.

G20 officials fretted about the dangers that a potential trade war posed to world economic growth.

The Hamburg agreement, signed by all G20 leaders including Trump, said G20 countries would fight protectionism including all unfair trade practices, although it also said they recognise the role of "legitimate trade defence instruments".


"I told the G20 we need to send a joint message on this point, and our view was taken into account in the communique", Japan's vice finance minister Minoru Kihara told a briefing on Tuesday after attending the G20 finance leaders' gathering. Yet the USA can also argue its tariffs are a "legitimate trade defence instrument". Protectionism could damage growth, he added.

Many U.S. allies, including the European Union, have sought the same exemptions that Trump has granted to North American neighbors Canada and Mexico, with some G20 ministers raising the issue with Mnuchin.

"It is of the utmost importance to avoid any unilateral choice that might jeopardize our growth".

Mnuchin said he has had very direct conversations with his counterparts in China and that he looks forward to working with Liu He, China's newly-installed, Harvard-educated vice premier in charge of financial and industrial policy, on getting better access to the Chinese market.

The meeting was expected to call for stricter monitoring of cryptocurrencies, the decentralized and anonymous nature of which can turn them into "a potentially major new vehicle for money-laundering and financing of terrorism", according to the International Monetary Fund.

But they also noted that such assets raise issues related to consumer and investor protection, market integrity, tax evasion, money laundering and terrorist financing.

Recommended:



Popular

Reality comes crashing down on both Uber and Facebook
Herzberg's death has sparked concern over whether the vehicles should be trusted in the same way as regular cars. The Maricopa County Attorney's Office will ultimately determine whether any charges will be filed in the crash .

Katy Perry: I kissed a guy and he didn't like it
The hopeful said: "I'm sorry for this Katy - Taylor Swift ", acknowledging the two stars' feud . One thing is definitely clear though, they will never stop trashing each other.

The Cleveland Browns must draft a Quarterback with the top pick
The Cleveland Browns are going to select Josh Allen; the quarterback who is not as refined as his peers but has a lot of upside. Mayfield also has the leadership qualities that could help to reverse the revolving door trend of quarterbacks in Cleveland.

Jim Carrey Shares 'Monstrous' Painting of Sarah Sanders
He captioned his artwork: 'This is the portrait of a so-called Christian whose only goal in life is to lie for the wicked. Portraying Trump as a witch likely alludes to the President's frequent use of the term "witch hunt" on Twitter .

More snow and weather warnings as 'mini beast from the east' arrives
Met Office meteorologist Alex Burkhill said: "It will be bitterly cold with some snow for many places over the weekend". He said: "We don't expect anything like the same impact as a result of it, although there will be some snow about".

Federation Internationale de Football Association gives VAR the green light for 2018 World Cup
Infantino said VAR evidently has shown that it reduces human error in the game and it makes football a more transparent sport. The VAR system has been trailed worldwide, but its use in England during FA Cup games has been met with great cynicism.

Conte to name strongest Chelsea side for Leicester FA Cup tie
Willian, who has been Chelsea's brightest performer of late, said: "Now we have to look forward". This is the FA Cup quarterfinal.

Form Eriksen hopes he hasn't hit Tottenham ceiling
Tottenham could've added more goals late on but they settled for three goals as Swansea were in full damage limitation mode. It took just 11 minutes for Christian Eriksen to open the scoring, on the back of some good Spurs pressure.

Undocumented Lawyer Appointed to State Post in California in First-Ever Move
De Leon announced Mateo's appointment the day after Trump visited California to view prototypes of his proposed border wall . Mateo will advise the California Student Aid Commission to help low-income and marginalized people attend college.

49ers fans have concerns about Richard Sherman jumping from Seahawks
The vote is in from the guy who feels the Richard Sherman departure more than anyone in Seattle. Right now, the San Francisco 49ers' arrow is pointed in an unmistakably upward direction.