BADEN: Finance ministers from the world’s biggest economies on Saturday failed to get the US to renew an anti-protectionist pledge and a vow to fight climate change, in the face of Donald Trump’s “America First” push.

After a two-day meeting, ministers from G20 developed and emerging nations said they were “working to strengthen the contribution of trade to our economies” but failed to spell out a pledge to reject protectionism in a closing statement.

An entire section on action against climate change was dropped from the final document, sparking dismay among America’s partners as well as environmental activists.

“I regret that our discussions today were unable to reach a satisfying conclusion on two absolutely essential priorities that our world and which France would have liked to see the G20 continue to take firm and concerted action on,” said French Finance Minister Michel Sapin.

Host German Finance Minister Wolfgang Schaeuble however struck a conciliatory tone, noting that in the US the matters of finance and trade were divided in two portfolios.

“Trade questions are not the responsibility of the finance minister... that’s why it was a bit complicated, that’s true,” he said, as the American delegation was led by US Treasury Secretary Steven Mnuchin.

The conspicuous omissions come as Trump champions a “Buy American” strategy that includes threats to penalise companies that manufacture abroad by heavily taxing their products.

Carried to power on the back of a political storm over deindustrialisation in vast areas of the US, Trump vowed in his inauguration speech to “follow two simple rules: buy American and hire American.” Since taking office, he has withdrawn the US from a trans-Pacific free trade pact and attacked export giants China and Germany over their massive trade surplus.

His stance has been condemned by Washington’s trading partners, and led Beijing to issue a stern warning against sparking a trade war.

Trump himself insisted at a tense Washington press conference Friday, following his first meeting with German Chancellor Angela Merkel, that “I’m a free trader but also a fair trader”. He also rejected a description of his policies as “isolationist.”

References to action against climate change under the Paris Accord were absent from the G20 statement, unlike at a China-led summit last year.

Delegates said the US team was unable to commit as they had not been given instructions from Washington to do so at the meeting in the western German spa town of Baden-Baden.

The exclusion of climate marked a new setback for environmental action, activists say, after Trump proposed to take the axe to environmental financing.

Under his first national budget proposal, he suggested cutting financial resources for the Environmental Protection Agency (EPA) by a third, as well as eliminating contributions linked to UN climate change programmes.

Published in Dawn, March 19th, 2017

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

X post facto
19 Apr, 2024

X post facto

AS has become its modus operandi, the state is using smoke and mirrors to try to justify its decision to ban X,...
Insufficient inquiry
19 Apr, 2024

Insufficient inquiry

UNLESS the state is honest about the mistakes its functionaries have made, we will be doomed to repeat our follies....
Melting glaciers
19 Apr, 2024

Melting glaciers

AFTER several rain-related deaths in KP in recent days, the Provincial Disaster Management Authority has sprung into...
IMF’s projections
Updated 18 Apr, 2024

IMF’s projections

The problems are well-known and the country is aware of what is needed to stabilise the economy; the challenge is follow-through and implementation.
Hepatitis crisis
18 Apr, 2024

Hepatitis crisis

THE sheer scale of the crisis is staggering. A new WHO report flags Pakistan as the country with the highest number...
Never-ending suffering
18 Apr, 2024

Never-ending suffering

OVER the weekend, the world witnessed an intense spectacle when Iran launched its drone-and-missile barrage against...