G20 warns trade tensions put the global economy at risk

Finance ministers and central bankers of G20 countries admitted Sunday that trade tensions have worsened, raising a risk for the global economyat a meeting in Japan that highlighted the differences between the United States and their partners. Nicolás Dujovne and Guido Sandleris were the Argentinian representatives at the summit and met IMF director Christine Lagarde.

After 30 hours of debate, the G20 issued a final statement recognizing that "growth remains weak and the risks of aggravation remain"For the global economy." More importantly, trade and geopolitical tensions have intensified, "said the G20, adding that it remained" ready to take further action "if necessary.

In a text that had a special impetus from the United States, the communiqué avoided certain references in projects that referred to "an urgent need for resolve trade tensions", mainly the one that confronts the White House to China, the text sums up two days of talks in Fukouka, in western Japan, during which the controversial issue of tax to the internet giants as Google or Amazon was also discussed.

"We will redouble efforts to find a consensual solution with a final report for 2020," said the G20, which will strive to change the international tax system to address the existing legal vacuum in some companies. high turnover rate in the world.

However, beyond this "consensus", the differences between the United States and their partners were again evident at this meeting. France and the United Kingdom want to act globally with this type of tax and have already introduced it at the national level, while the administration of the President of the United States, Donald Trump, has another opinion.

"I must say that the United States has big concerns" about these taxes, said US Treasury Secretary Steven Mnuchin, while attributing a "credit" to these countries because "they created the" urgency to solve the problem ". "Although I do not like them, I appreciate the impetus given to these issues," he said.

The warning of Lagarde

Before the G20 meeting, Christine Lagarde, Managing Director of the IMF, had asked the G20 member countries to maintain a monetary policy favorable to economic activity. "The main threat"For the global economy" comes persistent trade tensions, "said Lagarde Sunday at the end of the meeting, citing" tentative signs of stabilization "on a" pathway "that" remains precarious ".

Faced with this warning about the impact of the trade war on the global economy, the United States believes rather that, if their offensive against China results in an agreement, it would be positive for the whole world.

According to IMF estimates, the US and Chinese tariff wars could be reduce the level of world GDP by 0.5% and $ 455 billion for 2020, which would significantly affect forecasts of economic activity, according to a statement from the IMF.

To mitigate these risks, Lagarde called for the resolution of current trade tensions while continuing to work for the modernization of the international trading system. Finally, Lagarde also stressed the importance of "working together to address global economic imbalances, which are increasingly concentrated in advanced economies".

The executive director of the international organization on Saturday met with Finance Minister Nicolas Dujovne and Central Bank President Guido Sandleris, after which he praised economic policies executive under the financial badistance program.

"The continued political efforts of the Argentine authorities have led to important advanceseven in tax and current accounts, "said Lagarde on his Twitter account.