G-20 calls for more dialogue on growing trade tensions

The world's leading financial executives gathered in the Argentine capital have called for more dialogue on trade disputes that threaten global economic growth with an official warning that differences remain and tensions could intensify.

20 finance ministers and central bankers in Buenos Aires took place while the United States and China are engaged in a full-fledged trade war, with the two countries imposing tariffs on billions of dollars of reciprocal goods.

Although the global economy remains strong, growth becomes "less synchronized" and risks in the short and medium term increase

"These include growing financial vulnerabilities, increased trade and geopolitical tensions, global imbalances, inequalities and structurally weak growth. especially in some advanced economies, "the statement said. "We recognize the need to intensify dialogue and actions to mitigate risks and build confidence."

On Friday, President Donald Trump renewed his threat to finally impose tariffs on a total of $ 500 billion in imports from China. equal to all the goods that Beijing ships annually to the United States. The White House also listed $ 200 billion of additional Chinese imports that could be subject to customs duties.

The United States also imposed 25% duty on aluminum, including from Europe. China, EU, Canada, Mexico and Turkey counterbalanced taxes on US exports

Group of 20 met on Sunday, European Commissioner for Financial Affairs Pierre Moscovici stated that divergent positions persisted despite the talks. "These meetings took place in a very difficult international context," Moscovici told reporters. "Trade tensions remain high and they threaten to increase further".

But Moscovici said the summit that began on Saturday had not been "tense" and that countries needed to stay "cool" and keep a good sense of perspective. 19659002] Representing the United States at meetings, Treasury Secretary Steven Mnuchin, who said Saturday that the US economy has not been harmed by the commercial battles unleashed by Trump's policies. He acknowledged, however, that some sectors had been harmed and that US authorities were looking for ways to help them.

The Managing Director of the International Monetary Fund, Christine Lagarde, warned that a wave of tariffs could significantly harm the global economy. 0.5% "in the worst case."

"Protectionism, I want to insist on this point, is good for no one," Moscovici said. "Trade wars are not easy … they do not create winners, only losses."

But Moscovici said that the EU remains open to dialogue

"That is why EU President Jean-Claude Juncker and EU Trade Commissioner Cecilia Malmstrom will meet Trump "in Washington DC next week, he said. "We hope this meeting will be productive and successful."

To date, global markets have remained generally calm despite the US-China trade war and other Trump-triggered conflicts.

But analysts hope Trump will impose more tariffs on China and potentially other key US trading partners. With these nations almost sure to fight back, the result could be higher prices for Americans, a decline in export sales and a weaker US economy by next year.

The 20-nation group is made up of traditional economic powers such as the United States and Japan. and Germany and the emerging economic powers including China, Brazil, India and Argentina.

Buenos Aires officials also discussed the future of labor and infrastructure for development, the international tax system, and financial inclusion. This is the third of five meetings of finance ministers and central bankers scheduled for a G-20 meeting in Argentina to be held from November 30 to December 1.