G20 summit draft communique calls for promotion of free trade

By: |
Published: June 26, 2019 6:08:19 AM

In a draft communique, the G20 nations stressed the importance of creating a positive cycle where the benefits of solid growth are distributed broadly across economies

G20 summit, tradeMarkets are focusing on whether Trump and Chinese President Xi Jinping could lay the path toward resolving the trade tension when they are scheduled to meet on the sidelines of the G20 summit.

Leaders of the Group of 20 major economies will likely call for the “promotion of free trade” as a means to achieve strong global growth when they meet for a summit this week, Japan’s Asahi newspaper reported on Wednesday.

In a draft communique, the G20 nations also stressed the importance of creating a positive cycle where the benefits of solid growth are distributed broadly across economies, the Asahi said.

The bitter US-China trade war has hurt business sentiment and jolted financial markets, casting a shadow over the two-day G20 summit to be held in Osaka, western Japan, from Friday.

Under pressure from the administration of U.S. President Donald Trump, the G20 removed a phrase calling for the need to resist protectionism from its communique at last year’s summit in Buenos Aires.

A communique signed off by the G20 finance leaders at their meeting earlier this month also does not include the language denouncing protectionism.

Also read: G20 summit: Donald Trump to meet PM Modi, Xi Jinping; to discuss several issues, including trade

But some European countries are demanding that upcoming summit’s communique include language warning against the spread of protectionist policies, the Asahi said.

Japan, which chairs this year’s G20 meetings, is seeking to find a compromise and the current draft communique has a phrase endorsing the promotion of free trade, the paper said.

Markets are focusing on whether Trump and Chinese President Xi Jinping could lay the path toward resolving the trade tension when they are scheduled to meet on the sidelines of the G20 summit.

Do you know What is Wholesale Price Index (WPI), Public Debt, Finance Commission Grants & Other Transfers, Economic Survey, State Finance Commission? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.