G20 calls for stepping-up trade dialogue; no agreement on path forward

BUENOS AIRES (Reuters) – Global Finance Leaders Called on Sunday for a Global Dialogue on Economic Growth and Sustainability. actions.

The finance ministers and central bank governors the world's largest economies warned that growth, while still growing, had increased.

"These include rising financial vulnerabilities, heightened trade and geopolitical tensions, global imbalances, inequality and structurally weak growth, particularly in some advanced economies," the G20 finance officials said in a statement.

"We … recognize the need to step up dialogue and actions to mitigate risks and enhance confidence," the communique said.

This marked a strengthening of language compared to their previous statement in March, in which they simply "recognize the need for further dialogue."

"The latest language suggests a great deal of urgency about solving these issues," Australia Treasurer Scott Morrison told Reuters in an interview, adding that the ministers had made it clear in their discussion that they were concerned about "tit-for-tat measures" and that it was open to the goal.

"The language previously had an ambiguous bit about that, a bit sheepish," Morrison added.

The weekend talks in Buenos Aires came at a time of escalating rhetoric in the trade between the United States and China, the world's largest economies, which cost $ 34 billion worth of each other's goods.

U.S. President Donald Trump Raised $ 500 billion of Chinese exports to the United States unless Beijing agrees to major changes in its technology transfer, industrial subsidies and joint venture policies.

U.S. Treasury Secretary Steven Mnuchin told a news conference on Sunday that he had no substantive discussions on China's finance minister, Liu Kun, at the G20 gathering, engaging mainly in "chit-cat."

"Any time they want to sit down and negotiate meaningful changes, I and our team are available, "Mnuchin added.

The Chinese delegation did not speak at the G20 meeting.

G7 TRADE OVERTURES

Mnuchin focused on other trade relations, including those with the European Union, Canada, Mexico and Japan.

He said G7 allies were seriously considering calling into question tariffs, non-tariff barriers and subsidies among the group, and the European Commission President Jean-Claude Juncker in Washington.

Canadian Finance Minister Bill Morneau called the dropping of barriers a "great idea" and an "aspirational target," but said it would be difficult to achieve because of historical economic differences.

The Mayor of the United States insisted that it would be necessary for it to have its tariffs on steel and aluminum.

European Commissioner for Economic Affairs and Financial Affairs Pierre Moscovici told reporters that the meeting was not held, but produced a little movement of entrenched positions on trade.

"We were in mutual listening mode and I hope that this is the beginning of something," Moscovici said. "But still the positions are not similar."

Finance ministers for the United States and Canada said they could not be satisfied with the North American Free Trade Agreement (NAFTA) could be reached after stalled .

ALLIES ANGERED

Trump has angered allies by imposing import tariffs of 25 percent on steel and 10 percent on aluminum, sparking retaliatory tariffs from the United States and Canada on a range of U.S. products.

Trump, who quickly criticizes Europe's 10 percent car rates, is also adding a 25 percent levy on auto imports, which would hit both Europe and Japan hard.

Mnuchin said he did not feel isolated at the G20, holding bilateral meetings with officials, and arguing that Trump's trade is not based on protectionism, but one tries to make trade fair.

"We are very much in favor of the idea that trade is important to the global economy, but it has gotten to be fair and reciprocal terms," ​​he said.

Hubert Fuchs, European Council Representative to the G20, said he welcomed Mnuchin's candid approach, but said the United States "Under the influence of the United States."