Rising trade tensions to adversely affect growth
brussels — European Union countries will tell the world’s financial leaders next month that rising trade tensions can have a “serious adverse” effect on global growth and that they should reject protectionism and commit to solving disputes through the WTO.
Finance ministers and central bank governors of the world’s 20 biggest economies are to meet on October 11-12 on the Indonesian island of Bali, and a trade war between the United States and China and tensions with Europe will top the agenda.
“We are concerned about the risk of escalating trade tensions, which can have a serious adverse impact for strong, inclusive, sustainable and balanced global growth and investment,” EU finance ministers said in a document prepared for the meeting that is to be formally approved on October 2.
“The G20 should reconfirm its commitment to promote market openness, the fight against all forms of protectionism, including all unfair trade practices, an enhanced rule-based multilateralism and a level playing field for trade in goods and services, investment and intellectual property rights,” the document, seen by Reuters, said.
The United States and China imposed fresh tariffs on each other’s goods on Monday, showing no signs of backing down from an increasingly bitter trade dispute that is expected to hit global economic growth.
The US tariffs covered $200 billion worth of Chinese goods. China retaliated with tariffs on $60 billion worth of US products.
The United States has also imposed tariffs on steel and aluminium imports from the EU and threatened duties on European car imports. Those are on hold as long as EU and US trade representatives are in talks on a broader trade deal that would reduce the US trade deficit with Europe.