G20 must tackle root causes of trade tensions: EU | 2019-04-08 | daily-sun.com

G20 must tackle root causes of trade tensions: EU

8 April, 2019 12:00 AM printer

BUCHAREST: The European Union will tell a meeting of finance leaders from the world's 20 biggest economies next week that they must all tackle the root causes of global trade tensions because they are putting global growth at risk, an EU document showed.

Finance ministers and central bank governors of the Group of 20 (G20) major economies are to meet in Washington on Apr 11 to 12 to discuss the main challenges to the world economy, report agencies.

"Current trade tensions put the ongoing expansion at risk and are therefore a source of concern," a joint position paper agreed by EU finance ministers on Saturday said.

The United States and China are engaged in intense negotiations to end a months-long trade war that has rattled global markets. Hopes of a resolution soared after both sides expressed optimism following talks in Beijing last week.

The International Monetary Fund said in its April World Economic Outlook this week that an escalation of the US-China trade war could reduce US growth by up to 0.6 per cent and China’s by up to 1.5 per cent.

"The international community has to tackle the root causes of the ongoing trade tensions by ensuring a level playing field for open and free trade in goods and services, investment and intellectual property rights," the joint EU statement said.

The United States is also in talks with the European Union on a trade deal after imposing tariffs on European steel and aluminum last year and threatening to impose tariffs on European cars.

"We reaffirm our commitment to keep the global economy open as well as rules-based, to support an inclusive multilateral trading system with the World Trade Organization (WTO) at its center and to keep international economic cooperation on track," the EU said.

Washington has reservations about the WTO which it believes is unable to tackle modern trade challenges and issues such as intellectual property theft.


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