G20 nods to Trump in watered-down report

Statement at the end of two-day meeting omitted a reference to the risk of protectionism

Leaders of the world’s largest economies agreed that the global system of rules which has underpinned trade for decades is flawed, in a postsummit statement on Saturday that the White House quickly claimed as a win for Donald Trump’s protectionist agenda.

The G20 communique was the culmination of days of roundthe-clock talks. Some officials said just having a statement was a good result, given intense wrangling over issues like trade, migration and climate. Still, the watered-down language suggests further tests ahead for advocates of globalisation and institutions like the World Trade Organisation (WTO).

The statement issued at the end of the two-day meeting in Buenos Aires, Argentina, omitted for the first time a reference to the risk of protectionism. While leaders recognised the benefits of multilateral trade, they said the system is “falling short of its objectives and there is room for improvement.”

A senior White House official praised the document, particularly the language calling for changes to the WTO and global trade. The addition of wording to explain Trump’s decision to exit the Paris climate accord was also welcomed by the US, the official said. While the communique said signatories to the accord reaffirmed it as irreversible, there was a separate line included underneath on the US position.

The US got the better deal out of the remaining 19 delegates, said Thomas Bernes, a distinguished fellow at Canada’s Centre for International Governance Innovation. “This is the weakest wording on trade that we’ve ever had,” Bernes said. “The 19 chose to bury their differences and issue a weakened communique, which raises questions about their ability to show resolute leadership.”

Missing issues

The lack of a reference to risks of protectionism was unsurprising, given many G20 members have been increasing barriers to trade, said a senior official involved in the discussions.

As often in G20 communiques, some of the most pressing issues were left out. While several leaders discussed Russian aggression against Ukraine in the Kerch Straits directly with Vladimir Putin, there was no reference to it in the statement. Nor was there mention of the concern many leaders feel about the brutal murder of journalist Jamal Khashoggi in Istanbul.

The 19 chose to bury their differences and issue a weakened communique, raising questions about their ability to show resolute leadership.” Thomas Bernes | Centre for International Governance Innovation