Lagarde urges G20 to avoid exceptional trade measures

Managing Director of IMF Christine Lagarde has appealed to all the G20 leaders to not to indulge in exceptional trade measures and to find a peaceful resolution of trade disputes. She urged the countries to work on various economic reforms in their countries to make way for more robust, inclusive and sustainable growth at the end of G20 summit which was largely dominated by US steel and aluminium tariffs and the new tariffs on China.

She stated that nations should act as responsible international players and come together to work in unison to diminish barriers to trade and arrive at peaceful solutions to trade disagreements.

World Financial leaders at Buenos Aires have committed towards more free trade and not favour inward-looking interests over international commitments.

President Trump’s recent tariffs on steel and aluminium dominated the discussions at the Summit especially as Trump has stated that more sanctions will be announced against China very soon to the tune of $60 billion. There were concerns about the possibility of the trade war which will trigger increased protectionism which can impede growth. The US Secretary clarified his stance and strongly stated that the US will not undermine and hurt its own interests to allow free trade systems work on international scale. There is thus a fear among the members of G20 that US will completely disrupt the trade system which is erected on the rules of WTO to favour its unilateral growth.

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