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The finance ministers of the major economic powers, meeting in Buenos Aires, believe that the aggravation of geopolitical and commercial tensions represents a risk which gains in magnitude for the global growth. They call for more dialogue.
In its final communiqué, the G20 observes that emerging economies are better prepared for possible external shocks, but also that they are still facing difficulties with elements such as market volatility or the risk of a reversal of capital flows. "Global economic growth is still there and unemployment is at its lowest for a decade; however, growth has been less synchronized in recent times and short and medium-term downside risks have developed, "reads the document.
" Let's mention increased financial weaknesses, more geopolitical and commercial tensions, imbalances inequality and structurally weak growth, especially in some advanced economies. "
G20 Leaders Stress Substantive Reforms Needed to Develop Economic Growth Potential and Confirm Commitment at Previous Meeting in March, to refrain from any competitive devaluation likely to have adverse effects on the world's financial stability.
Conclusions confirmed
The Ministers also confirm the conclusions of the Heads of State and the G20, established at their summit in Hamburg in July 2017, especially those wanting that trade is an engine of world growth and emphasizing the importance of multilateral trade agreements.
"We (…) take note of the need to promote dialogue and initiatives aimed at mitigate risks and enhance confidence, "the document says. "We are endeavoring to develop the contribution of trade to our economies."
The communiqué of the ministerial meeting in March merely stated that "the dialogue must be continued". The Buenos Aires meeting comes in a tense trading environment between the United States, China and other major trading powers. Washington reported in March that tariffs of 10% would be imposed on imported steel and aluminum, prompting a response from the European Union (EU).
New Trump Threats
On July 1, the United States and China each inflicted tariffs on $ 34 billion of respective imports. Donald Trump is now threatening to apply new duties, perhaps on more than $ 500 billion in imports from China, the total Chinese imports from the United States in 2017.
The US president is also studying the possibility of levying 25% tariffs on imports of automobiles, which would be a shock for both Europe and Japan.
US Treasury Secretary Steve Mnuchin wanted to take advantage of the meeting in Buenos Aires to propose free trade agreements to Europe and Japan, Washington trying to rally its allies to its cause in its standoff against China. The European Union can not consider negotiating a free trade agreement with the United States if they do not waive tariffs on steel and aluminum, said Saturday the French Minister of Finance Bruno Le Maire
Limited economic impact
Hubert Fuchs, who represents the European Council at the G20, on the contrary ruled on Sunday that the repeal of customs duties by the United States was not necessarily a prerequisite for the opening of trade talks.
"The United States Treasury Minister himself said he was in favor of free and fair trade; the problem is that the United States understand free and fair differently, "he said.
Pierre Moscovici, the European Commissioner for Economic and Financial Affairs, observed on Sunday that differences of opinion on trade tensions remained in the G20, but the meeting was tense. International trade tensions are strong and are likely to worsen, imposing new pressures on the multilateral system, but their economic impact is currently limited, he added. The G20 Summit of Heads of State will also be held in Buenos Aires at the end of November, and Donald Trump will be there, the Treasury Secretary badured. (ats / nxp)
Created: 22.07.2018, 22:24
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