Page 25 - ARUBA TODAY

BUSINESS Monday 24 april 2017
A25

Global finance leaders dodge conflict with Trump White House

PAUL WISEMAN expects the world econo- month in Baden-Baden,
MARTIN CRUTSINGER my to expand 3.5 percent Germany. Steven Mnuchin,
AP Economics Writers this year, up from 3.1 per- attending his first interna-
WASHINGTON (AP) — Glob- cent in 2016, helped by ris- tional gathering as Trump’s
al finance leaders sought ing commodity prices and Treasury secretary, had
to avoid conflict with the the surprising resilience of defended the change in
Trump administration over China’s economy. the G-20 communique at
trade and environmental But Lagarde and World the German meeting by
policy and welcomed signs Bank President Jim Yong saying, “The historical lan-
the world economy is pull- Kim said world govern- guage was not really rel-
ing out of the doldrums. ments needed to do a bet- evant.”
The International Monetary ter job helping those being Eswar Prasad, a trade
Fund dropped a sharp con- left behind economically. economist at Cornell Uni-
demnation of trade pro- Otherwise, a backlash versity, said the changes
tectionism and references against globalization could in the IMF and G-20 com-
to climate change from pressure governments into muniques reflect the Trump
a statement at the close adopting protectionist poli- administration’s determi-
of its spring meetings with cies that would harm world nation to undo decades of
the World Bank. Gone was trade and growth. American policy in favor of
a call for nations to “resist In its communique Satur- ever-freer trade. “The G-20 International Monetary Fund Managing Director Christine La-
all forms of protectionism” day, the IMF urged na- consensus on issues such garde speaks with U.S. Treasury Secretary Steven Mnuchin be-
that had been in an Octo- tions to avoid “inward- as free trade and com- fore a bilateral meeting during the World Bank/IMF Spring Meet-
ber communique. looking policies,” but did bating climate change is ings in Washington on Saturday, April 22, 2017. Associated Press
During the presidential not include the stronger crumbling in the face of
campaign, Donald Trump language of the October the Trump administration’s At a joint appearance administration’s goal was
threatened to impose tar- communique. hostility to those positions,” with Lagarde on Saturday, to make trade fairer and
iffs on China and Mexico At a closing news confer- Prasad said. “The notion of Mnuchin said that the in- was not aimed at erecting
and called global warm- ence, Lagarde and Agustin allowing for freer trade has ternal debate over the protectionist barriers.
ing a hoax. Since taking Carstens, head of the Bank run up against the Trump wording of the IMF com- “The United States is prob-
office, Trump has slashed of Mexico and chair of the administration’s convic- munique had taken much ably the most open trading
environmental regulations, IMF’s policy committee, tion that its major trading less time than the debate market there is,” Mnuchin
and his administration has sought to downplay the partners are manipulating over the wording of the said.q
planned big cutbacks at changes. Lagarde noted trade and currency poli- G-20 communique last
the Environmental Protec- that a separate document cies to their own benefit.” month. He said that the
tion Agency. setting out the IMF’s policy
The meetings of the 189-na- agenda did retain strong
tion IMF and World Bank, language condemning
which wrapped up Satur- protectionism and promot-
day, were dominated by ing efforts to combat cli-
concerns over the rising mate change.
anti-globalization tide that Carstens said that it was
carried Trump to the White important to recognize
House and set the stage for the viewpoints of different
Britain to leave the Europe- countries. “We all want
an Union. free and fair trade and
Skepticism over the ben- that is what is reflected in
efits of free trade persists the communique,” he told
despite signs of economic reporters when asked why
improvement. The global the language on protec-
economy is finally recover- tionism had been dropped.
ing from a long period of A similar change on the is-
economic languor that IMF sue of protectionism was
managing director Chris- made in a communique
tine Lagarde labeled “the that the Group of 20 ma-
New Mediocre.” The IMF jor economies issued last