US faces protectionism concerns at G-20 meeting

March 20, 2018

Buenos Aires- Top finance officials from the Group of 20 major economies were broadly united in opposing trade protectionism on the first day Monday of their two-day meeting in Buenos Aires, Argentina, sources with access to the talks said.

At the meeting of the G-20 finance ministers and central bank governors, the United States faced a barrage of concerns about a possible negative impact on the global economy from the protectionist trade policy of the administration of President Donald Trump.

China and the European Union are strongly opposing the new tariffs that the United States plans to impose on steel and aluminum imports.

The United States and other countries complain of state-backed overproduction by Chinese steelmakers.

At the meeting, China was criticized for subsidizing state companies to sell steel products at low prices. Beijing was urged to carry out structural reform to address the issue.

Japanese State Finance Minister Minoru Kihara told the meeting that protectionism would lead to a contraction of the global economy.

Kihara also said recent financial market moves do not reflect economic fundamentals, referring to global stock sell-offs and the yen's advance in February.

As one of risk factors to the global economy, Kihara cited North Korea's nuclear and missile development.

He called for a cautious approach to North Korea, pointing out that past dialogue with the country has not led to its denuclearization.

Kihara attended the meeting in place of Finance Minister Taro Aso, who stayed in Japan to focus on a response to a scandal over his ministry's alterations of documents related to a controversial land deal.

The G-20 officials agreed to promote cooperation to improve infrastructure in emerging economies and developing countries.

The officials are set to issue a joint statement Tuesday afternoon to wrap up their talks. Jiji Press