European Union countries will tell the world’s financial leaders next month that rising trade tensions can have a “serious adverse” effect on global growth, the media reports on Friday.
They should reject protectionism and commit to solving disputes through the WTO.
Finance ministers and central bank governors of the world’s 20 biggest economies are to meet Oct. 11-12 on the Indonesian island of Bali.
A trade war between the United States and China and tensions with Europe will top the agenda.
“We are concerned about the risk of escalating trade tensions.
Such escalation could have a serious adverse impact for strong, inclusive, sustainable and balanced global growth and investment,” EU finance ministers said.
They said this in a document prepared for the meeting that is to be formally approved on Oct 2.
“The G20 should reconfirm its commitment to promote market openness, the fight against all forms of protectionism, including all unfair trade practices, an enhanced rule-based multilateralism.
”In addition, it will encourage a level playing field for trade in goods and services, investment and intellectual property rights,” the document revealed.
The United States and China imposed fresh tariffs on each other’s goods on Monday, showing no signs of backing down from an increasingly bitter trade dispute that is expected to hit global economic growth.
EU officials say they fully agree with the U.S. that China uses unfair trading practices and steals intellectual property but disagree on how to bring Beijing into line.
The EU believes it would be better to address China concerns through the World Trade Organisation rather than a trade war.
European Union trade officials will travel to Beijing shortly before the G20 meeting for talks with their Chinese counterparts on reforms of the WTO.
The WTO has been under increasing pressure to reform since Trump blocked the reappointment of WTO judges and imposed its tariffs on China and other countries.
China is widely seen as the principal target of Trump’s ire.
“The EU calls on G20 members to support the modernisation of the WTO, and swiftly develop of a new set of guidelines for publicly supported export finance by International Working Group on Export Credits,” the EU document said.
Reuters/NAN
