Nations divided on trade policy

BADEN-BADEN, Germany — The world’s top economic powers have dropped a pledge to fully oppose trade protectionism amid pushback from the U.S. government of President Trump, who wants to favor American companies and workers more.

Finance ministers at a Group of 20 meeting in Germany 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 favor a country’s businesses over those in another economy.

The statement by the G-20, which brings together the world’s top economic and diplomatic powers, is important as it helps set the tone for global economic policy.

U.S. Treasury Secretary Steven Mnuchin sought to downplay the divisions, saying that the language opposing protectionism was “not really relevant” any longer.

“We believe in free trade,” he said, adding however that “balanced trade needs to be what’s good for us and what’s good for other people.”

Trump and other critics of free trade argue that it can cause jobs, such as in the laborintensive manufacturing sector, to move to lower-cost countries. Proponents say technological advances, such as automation, are more to blame for the loss of jobs in such sectors.

Trump, who campaigned on an “America First” platform, has already pulled the U.S. out of a proposed free trade deal with Japan and other Pacific Rim countries.