EU urges G20 to tackle root causes of trade tensions

BUCHAREST: The European Union (EU) will tell a meeting of finance leaders from the world’s 20 biggest economies this week that they must all tackle the root causes of global trade tensions because they are putting global growth at risk, an EU document showed.

Finance ministers and central bank governors of the Group of 20 (G20) major economies are to meet in Washington on Thursday and Friday to discuss the main challenges to the world economy.

“Current trade tensions put the ongoing expansion at risk and are therefore a source of concern,” said a joint position paper agreed to by EU finance ministers on Saturday.

The United States and China are engaged in intense negotiations to end a months-long trade dispute that has rattled global markets.

Hopes of a resolution soared after both sides expressed optimism following talks in Beijing last week.

The International Monetary Fund said in its April World Economic Outlook this week that an escalation of the US-China trade war could reduce US growth by up to 0.6 per cent and China’s by up to 1.5 per cent.

“The international community has to tackle the root causes of the ongoing trade tensions by ensuring a level playing field for open and free trade in goods and services, investment and intellectual property rights,” said EU in a joint statement.

The US was in talks with the EU on a trade deal after imposing tariffs on European steel and aluminium last year and threatening to impose tariffs on European cars.

“We reaffirm our commitment to keep the global economy open as well as rules-based, to support an inclusive multilateral trading system with the World Trade Organisation at its centre and to keep international economic cooperation on track,” said the EU.