G20 finance chiefs express concern over risks from 'intensified' trade conflict
  • 5 years ago
A sense of uncertainty lingered among the finance ministers of G20 nations as they wrapped up a meeting in Japan and headed back to their home countries.
Weighing heavily on their minds were concerns that trade and geopolitical tensions have "intensified" to the point where they are now a threat to the global economy.
Lee Seung-jae has the details.
A two-day gathering of G20 finance leaders came to an end in Fukuoka on Sunday under a cloud of uncertainty about the health of the world economy as trade tensions escalate.
Despite problems pointing to the ongoing trade war between the U.S. and China,... the finance leaders stopped short of calling for a resolution.
In fact, in the joint statement released on the final day,... a proposed clause to "recognize the pressing need to resolve trade tensions" was excluded.
According to sources,... the deletion came at the insistence of Washington,... as it looks to continue hitting China with massive tariffs.
The statement also contains no admissions that the deepening U.S.-China trade conflict is damaging global growth.
This comes as the IMF warned last week that while global growth is still expected to improve this year and next,... the U.S.-China trade war could shave zero-point-five percent from global GDP output in 2020.
For context, that's equivalent to the size of South Africa's entire economy.
However, the G20 finance leaders agreed to compile common rules by 2020,... in order to close loopholes that are used by global tech giants to reduce their corporate taxes.
The communique also includes pledges to increase debt transparency on the part of borrowers and creditors.
Sustainable infrastructure development was another priority amid concerns China's massive Belt and Road infrastructure drive is saddling poor nations with debt they can't afford to repay.
Lee Seung-jae, Arirang News.
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