G20 finance chiefs agree trade, geopolitical tensions have ‘intensified’, sources say
- Ministers, central bankers set to issue joint statement promising to do more to resolve economic risks
- Communique also likely to say officials ‘reaffirm leaders’ conclusions on trade’ reached at Buenos Aires summit last year
Group of 20 finance leaders agreed to describe trade and geopolitical tensions as “intensified” and pledged to take further action to address these economic risks, three sources said as a second day of meetings got under way on Sunday.
But the finance chiefs also agreed to trim a passage in their joint statement referring to trade, cutting language that stated a “pressing need” to resolve the tensions, according to two officials familiar with the latest draft.
After rocky negotiations that nearly aborted the issuance of a communique, the finance ministers and central bank governors gathered in Fukuoka, Japan agreed to affirm language on trade issued in Buenos Aires in December, the sources said.
The meeting in the Argentinian capital launched a five-month truce between the United States and China to allow for negotiations to end their deepening trade conflict. But the talks hit an impasse last month, prompting higher tariffs on both Chinese and US goods as the dispute nears the end of its first year.
The G20 source said that the communique to be issued later on Sunday would say: “Most importantly, trade and geopolitical tensions have intensified.”
It would also say that the G20 leaders “will continue to address these risks and stand ready to take further action”, the person said. “We reaffirm our leaders’ conclusion on trade at the Buenos Aires summit.”