Germany’s Federal Minister of Finance Wolfgang Schauble speaks on stage at the High-level Tax Symposium held in Chengdu in Southwestern China’s Sichuan province, Saturday, July 23, 2016.
Advertisement
The two finance ministers also discussed the importance of China implementing its ambitious structural reform agenda to rebalance the Chinese economy toward household consumption and services.
Global finance officials, jolted by growing anti-trade and economic nationalism movements behind Britain’s vote to leave the European Union and Donald Trump’s US presidential campaign, are intensifying pledges for more “inclusive” growth.
The specter of protectionism and nationalism, as illustrated by the rise of Donald Trump and his “America First” rhetoric in the USA presidential election, as well as Britain’s recent vote to leave the European Union, has cast a pall over the meeting.
The excess capacity of steel has had a negative impact on trade and workers and requires a collective response, they said.
Following the meeting in the Chinese city of Chengdu, the G20 group said it had the tools to cope with the potential economic and financial consequences from the referendum result.
In a statement released at the end of the talks, the G20 noted that, while the world’s biggest nations are “well-positioned to proactively address the potential economic and financial consequences” of the pro-Brexit referendum decision, “in the future we hope to see the United Kingdom as a close partner of the EU”.
Finance leaders from G20 countries reiterated Sunday their commitment to employing all policy tools – monetary, fiscal and structural – to pursue growth, while the head of the International Monetary Fund (IMF) called for broad-based policy efforts.
Ahead of the meeting the International Monetary Fund (IMF) downgraded its forecast for global growth this year, and officials in Chengdu said protracted talks between the European Union and Britain over the departure could heighten risks.
In the communique, the G20 underscored “the role of open trade policies and a strong and secure global trading system in promoting inclusive global economic growth, and we will make further efforts to revitalize global trade and lift investment”. They promised to strengthen communication and cooperation but announced no joint action, as some financial traders had hoped.
Amid reports that talks between Britain and Europe have been acrimonious at best, US Treasury Secretary Jacob Lew said he had used the G20 meeting to stress the “the need for negotiations to take place in a smooth, pragmatic and transparent manner”.
“There is going to be uncertainty about the outcome hanging over the world economic outlook for perhaps the next couple of years”, Mr Hammond said.
“There was a consensus around the table that more needs to be done to share the benefits of growth and economic openness broadly within and among countries”, she added.
The finance ministers pledged to work to boost the global economy and deal with the potential protectionism issue in the wake of the vote, the Independent reported.
“We will oppose all forms of protectionism”, the statement said.
The US presidential election, in which tycoon Donald Trump has sealed the Republican party nomination and will face Democrat Hillary Clinton, could add uncertainty if the contest is close.
Advertisement
“The world economy is beleaguered with many serious problems”, Chinese finance minister Lou Jiwei, who hosted the meeting, said on Saturday.
