G-20 Finance Ministers Say Trade Tensions Create Global Economic Risks

The hosts of the G-20 meeting of finance ministers in Buenos Aires declined to criticize U.S. protectionism when pressed by reporters, or give specifics about what others said to Treasury Secretary Steven Mnuchin, who was in attendance. Argentina's Finance Minister Luis Caputo said that while there are trade tensions, and that was the hottest topic at the meeting, "we had a very constructive dialogue. We have reasserted that trade and investments are an engine for growth, productivity, innovation, job creation... ."

The communique released at the end of the meeting on July 22 called for intensifying dialogue on trade. It also said that growing trade tensions are a risk to the global economy. Caputo said the forum is not the place to resolve differences -- those must be done bilaterally, or at the World Trade Organization. "In this group, we have to emphasize consensus, that constructive dialogue is an essential part of this task. It's not a question of denying differences that exist in certain fields," he said during the final press conference.

Mnuchin said he had good conversations with trading partners such as Mexico, France, Japan and Canada. "I don't take away that we are divided," CNN reported him saying. "We're looking forward to trying to solve the trade issues with the EU, which has not just tariffs" but also non-tariff barriers, he said. But French Finance Minister Bruno Le Maire echoed his president's declaration that Europe would not negotiate with a gun to its head. In an interview with a French newspaper, he said the trade war has been launched, and no one is winning. "I call on Donald Trump to return to reason with regards to his allies. The protectionist measures he's chosen will destroy jobs in the U.S., in France, in Europe and throughout the world.... These commercial attacks must end." If they don't, he said, "Europe will protect its interests and respond."