Trump views most trade deals such as Nafta as unfair. His team insists that renegotiating trade deals,
BUENOS AIRES: Top policy makers from several major economies urged the U.S. on Monday to resist protectionism, days before the Trump administration’s proposed tariffs on steel and aluminum products are set to take effect.
Finance ministers from Germany, France and Brazil urged their counterparts from the Group of 20 major economies to stick to a multilateral approach to global commerce, warning that failing to do so could spark a trade war and harm growth.
“We must ensure that protectionism doesn’t become the dominant force in the world but that we continue to promote open markets. The prosperity of all of us depends on this,” German Finance Minister Olaf Scholz told reporters Monday.
The comments came as the European Union, Brazil and other countries race against the clock to negotiate an exemption from the tariffs before they take effect later this week. The Trump administration has justified the measures on the grounds of national security, perplexing its traditional military allies who say they threaten the multilateral, rule-based system currently in place.
French Finance Minister Bruno Le Maire suggested an agreement could be difficult.
“I would not say I am optimistic,” Mr. Le Maire told reporters. “I have been very clear with [Treasury Secretary] Steven Mnuchin that we are waiting for a full exemption from these new American tariffs for the European Union as a whole…It is difficult, but it is not out of reach.”
Several officials at the G-20 meeting characterized the U.S. as increasingly isolated from other G-20 members as a result of the trade issue, with several participants referring to the U.S. as the “G-1.”
The focus on trade came despite Mr. Mnuchin’s hopes of building a consensus against opaque Chinese lending practices that the U.S. says are contrary to free-market principles. When Mr. Mnuchin made that argument, however, Mr. Le Maire pointed to the tariffs.
A spokesman for the U.S. Treasury Department didn’t respond to emailed requests for comment.
The meeting of finance chiefs is scheduled to wrap up Tuesday with the issuance of a statement in which officials will attempt to highlight points of agreement on economic policy. As was the case at the G20’s previous summit in Hamburg, Germany, in July, the Trump administration’s skepticism of free trade has made this more challenging than in the past.
In July, G-20 leaders stressed “the importance of reciprocal and mutually advantageous trade and investment frameworks,” while also recognizing “the role of legitimate trade defense instruments” to counter unfair practices.
Some delegation members said Monday that the U.S.’s recent policies needed to be addressed in this week’s communiqué.
“A lot has happened since Hamburg,” a member of a European delegation said. - Wall Street Journal
Limited time offer:
Just RM5 per month.
