G20 drops trade vow amid U.S. pressure

BADEN-BADEN, GERMANY• The world’ s top economic powers have dropped a pledge to oppose trade protectionism, amid pushback from the Trump administration, which wants trade to more clearly benefit American companies and workers.

Finance ministers from the Group of 20 countries meeting in the southern German town of Baden-Baden issued a statement Saturday that said only that countries “are working to strengthen the contribution of trade” to their economies.

By comparison, last year’s meeting called on them to resist “all forms” of protectionism, which can include border tariffs and rules that keep out imports to shield domestic companies from competition.

The statement from the G20 finance ministers and central bankers helps set the tone for further global economic co-operation.

U.S. Treasury Secretary Steven Mnuchin sought to play down the wording issue. He said the statement needed to reflect the discussion at the current summit. “The historical language was not really relevant,” he said.

“We believe in free trade: we are one of the largest markets in the world, we are one of the largest trading partners in the world,” Mnuchin said. “Having said that, we want to re-examine certain agreements ... And to the extent that agreements are old agreements and need to be renegotiated, we’ll consider that as well.”

He said trade deals need to offer a “win-win situation.”

Mnuchin said the administration would be looking at relationships where the U.S. was buying more than it could sell to its partner, and would be more aggressive in seeking enforcement of existing rules that would benefit U.S. workers through the Geneva-based World Trade Organization. The WTO operates a system of negotiated trade rules and serves as a forum for resolving disputes.

China and European countries had pushed for a stronger affirmation of cross-border trade without tariffs or barriers. Ironically, China and some European states tend to intervene more often in private-sector business than the U.S. government.

Canada took a middle approach in the talks, urging a statement supporting free trade but not taking a position on specific wording.

Trump has already pulled the U.S. out of a proposed free-trade deal with Japan and other Pacific Rim countries. He also has started the process to renegotiate the North American Free Trade Agreement with Mexico and Canada.

Steven Mnuchin