US issues trade challenge at fraught G20

By: | Published: March 19, 2017 5:21 AM

In a first sign of what Donald Trump's "America First" push spells for the world, finance ministers from the G20 group of developed and emerging nations failed to get Washington to sign off on a pledge to reject protectionism in a closing statement.

The United States today challenged long-standing global principles surrounding free trade, refusing to renew past anti-protectionist pledges and threatening to reopen negotiations on World Trade Organization deals. (Reuters)

The United States today challenged long-standing global principles surrounding free trade, refusing to renew past anti-protectionist pledges and threatening to reopen negotiations on World Trade Organization deals. In a first sign of what Donald Trump’s “America First” push spells for the world, finance ministers from the G20 group of developed and emerging nations failed to get Washington to sign off on a pledge to reject protectionism in a closing statement.

Commitments of support to the existing multilateral trade system, including the World Trade Organisation (WTO), were also conspicuously missing from the final communique. And an entire section on action against climate change was dropped from the final document, sparking dismay among America’s partners as well as environmental activists.

But Treasury Secretary Steven Mnuchin shrugged off the outcry. “The historical language was not relevant and, what is relevant is what we agreed as a group: to strengthen the contributions of trade to our economies and we will strive to reduce excess global imbalances to promote inclusiveness and fairness and reduce inequality,” he said. “I think that accurately reflects what we as a group talked about.”

Also watch:

He stressed that what Washington seeks is “free and fair trade” that is good for both Americans and the world. But trade deals that currently exist are not always balanced, he said, warning that Washington will not hesitate to renegotiate them. “We want to reexamine certain agreements, we have talked about reexamining NAFTA,” he told journalists, referring to the North American Free Trade Agreement between Canada, Mexico and the United States.

“We think there are parts of the WTO (World Trade Organisation) that are not being enforced, and will look to aggressively enforce things in the interest of American workers, and to the extent the agreements are old agreements and need to be renegotiated, we’ll consider that as well,” he added.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition