G20 calls for dialogue to end trade war that threatens growth

Photo: AFP

(Caracas, July 22. News24) .- The G20 Financial called for dialogue amidst a trade war that threatens growth, at the end of Sunday meeting of two days in Buenos Aires

Economic Ministers and presidents of the central banks of the G20 emphasized that although the growth of the world economy is still "robust", the "risks in the short and medium term "on the global activity they have increased, especially in the" commercial and geopolitical tensions ".

In this context, they called "to intensify the dialogue" to "improve confidence", in a context of increasing generalization ] of customs duties following the Donald Trump government decision to impose additional levies on imports of steel and aluminum.

"We recognize the need to intensify the dialogue and measures to mitigate" International trade and investment are important drivers of growth, productivity, and innovation , of job creation and development, "they say." We are working to strengthen the contribution of trade to our economies. "

Text, one tone conciliatory, does not directly refer to the trade war and is close to European declarations that tend to bridge to avoid escalation, the one with the toughest posture exposed by the United States during the weekend.

– Allies, not enemies –

In a tone opposite to that of Trump, European Commissioner for Economic and Financial Affairs, Taxation and Customs, Pierre Moscovici, assured Sunday that European countries are ready to "build bridges "

" We are ready to build bridges. (…) We must act with the United States as allies, not as enemies, but as allies, "he said at a press conference

. (EU) and Russia as commercial "enemies" Trump threatened to extend the additional tariffs he had on steel and aluminum to all Asian giant imports, for a $ 500,000 million a year

– Inflexible –

The United States has a much stronger stance We want a more balanced (trade) relationship "with China" and a balanced relationship is that we can sell more goods "to the Asian giant, said US Treasury Secretary Steven Mnuchin on Saturday

The United States seeks to fight a trade deficit with China that exceeds 370 billion dollars a year. In doing so, the tariff increase has affected other trading partners such as the EU, Canada or Mexico (members with the United States of the North Free Trade Agreement). American, NAFTA).

" The European Union is certainly not responsible for the major trade imbalances. We believe that accusing us is inappropriate," replied Moscovici.

Retaliation at US provisions have not waited and spread, and now threaten to reduce global growth.

– Losers only –

The EU insists that the current economic situation will leave only "Losers" on the road

"It goes without saying that an increase in trade conflicts would negatively affect welfare in all countries; also in the United States, "said Moscovici.

" Protectionism is good for no one. There are no winners, only victims "he concluded.

– Crisis of Multilateralism –

The tension that reigned in the crossroads of statements at the G20 in Buenos Aires Aires is another example of the crisis of multilateral trade negotiations, which is evident in the paralysis that runs through the World Trade Organization (WTO).

While the French Minister of Economy and Trade Finance, Bruno Le Maire, advocated "reforming trade multilateralism," Moscovici noted that the "multilateral system, of which the G20 is a central piece, is under significant pressure " and called for "strengthening it"

"Unilateral decisions can never be the answer," he said, referring to Washington's measures.

In the same sense, the Managing Director of the International Monetary Fund (IMF), urged at the end of the meeting in Buenos Aires "that trade disputes be resolved by international cooperation without recourse to exceptional measures. "

According to information provided by AFP

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