G20 warns of economic risks of trade dispute

Faced with the trade dispute between the United States, China and the EU, the major industrialized and emerging economies have warned of the dangers to the global economy. "The risks in the short and medium term have increased," says the joint statement at the meeting of finance ministers and central bankers of the G20 in Buenos Aires. "This includes vulnerability to financial problems, growing tensions in trade and geopolitics, inequality and structurally weak growth, particularly in some developed economies."

According to an badysis of the International Monetary Fund (IMF) World Economy. In the worst case, global economic output in such a scenario could be 0.5 percent or $ 430 billion lower in 2020 than expected, according to IMF estimates.

"International trade and investment are important drivers of growth – productivity, innovation and development," said the G20 communiqué. "We need to intensify the dialogue and act to contain the risks and threats. strengthen confidence. "

Mnuchin:" The United States wants a free and fair trade "

US President Donald Trump recently called the EU and China" Opponents "in the trade policy called. He punished both the People's Republic and EU countries with punitive tariffs, US Treasury Secretary Steven Mnuchin defended his country's controversial trade policy in Buenos Aires, while baduring Washington did not follow a protectionist course

"The United States wants a free and fair trade," said Mnuchin.The US has a trade deficit with the EU. "We just want to make sure that the American workers and entrepreneurs are treated fairly ". On the other hand, the Europeans, with their rights over steel and aluminum, even provoked the conflict.

Juncker Meets Trump

Finance Minister Olaf Scholz (SPD) was also supportive of Germany's Buenos Aires traveled. He warned the United States of the incalculable consequences of the new tariffs on car imports. "If it happens that the US imposes such tariffs, not only will they suffer the most, but they will not be able to quickly regain control of the situation."

Wednesday, European Commission President Jean-Claude Juncker and Trade Commissioner Cecilia Malmström in Washington to discuss the trade dispute with Trump. It will also go to the endangered vehicle tax, which would mainly hit German manufacturers. According to Mr Scholz, Mr Juncker should first of all send a message to the President of the United States: "Let him stay!"

The EU will probably make the move twice: it wants to offer both parties lower existing tariffs for certain products. In the event that Trump could aggravate the trade conflict, retaliatory measures are elaborated

The bargaining table is sought. "A rules-based, fair and free global trade is better than if everyone now takes protectionist measures," Scholz said

at the G20 meeting, all countries except the US any damage and should therefore be terminated. "During the discussions, it was repeatedly emphasized that a transition to protective tariff policies would not benefit anyone and would ultimately result in no loss of prosperity for all."

However, Scholz did not go as far as his French colleague Bruno Le Maire who only wants to speak to the United States when they retract their tax rates. "It is still on the agenda that the United States comes back to the measures it has already taken in terms of tariffs," he said. But he also stressed: "At the same time, it is also important that we talk to each other." Therefore, it was good that Juncker went to Washington and wanted to convince the US government to change course in trade policy.

The European Commission could count on the consensus of the EU states, but also the other G20 partners support. "There are no bilateral negotiations between the different states of the European Union," Scholz said. It is important.