Germany Wants Group 20 To Keep language on Climate Change, Currencies and Trade
According to a reliable G20 source, Germany will press the G20 members to reaffirm its commitment to fighting climate change, resisting currency wars and promoting free trade when finance ministers from member countries meet next month for the first time since Donald Trump’s inauguration into office.
But the sources claimed that there was high uncertainty involving the creation of the Group 20 communique due to new US administration's confrontational rhetoric on currencies and trade, and Trump’s scepticism about whether people are contributing to global warming.
Germany, which holds the current G20 presidency, is grounded in an awkward position of forging a consensus on a variety of issues affecting the world without a clear sense of where the United States stand and amid constant pressure from China to push back against the new US President’s protectionist language.
"The Chinese authorities want the G20 to reaffirm the fight against climate change, a cooperative financial order and the importance of free trade. The challenge is to achieve this without giving it an anti-United States flavour," a German source told Reuters on condition of anonymity.
The German authorities declined to comment on this.
The sources continued to say that it is too early to conclude whether there would be a major clash when the finance ministers from member countries meet next month in Baden-Baden.
But one Group 20 source said that Germany would champion for the perseverance of the essential principles of what has been agreed by the Group 20 in past years. Another source which told Reuters on condition of anonymity said that the discussion will also touch on currencies.
The G20 came to an agreement, in its communique in 2016, "competitive devaluations’ refrain" or any exchange rates targeting for "competitive purposes."
The US President and his advisers have regularly accused China of manipulating its currency to gain an advantage of its trading partners.
Mr Navarro, who was appointed by Trump to head the new National Trade Council, expressed his concern when he was addressing the Financial Times editors. He likened the euro to an “implicit Deutsche Mark” whose under evaluation made Germany have an undue advantage over its trading partners. His comments suggest that the Trump’s presidency will focus on currency when dealing with trade partners.
Addressing various stakeholders in the United States, Mr Navarro also called the European country one of the main hurdles to a United States trade deal with the European Union. He also claimed that the ongoing talks about the Transatlantic Trade and Investment Partnership are dead.
Discussions between the G20 have just begun ahead of 17-18 of March’s meeting in Baden-Baden although the G20 sources have said that nobody in the United States administration can decide anything before Munchin when his own top staff present.
The last Group 20 communique that agreed by Hangzhou leaders in September in china contain a number of statements about who could put it in an unease condition with the current US administration policy.