Trade Security Instruments Need to be Reinforced

JAKARTA - World financial leaders reject trade protectionism at a group summit of 20 (G20 summit).

However, the meeting failed to ease the threat of a trade war ahead of tariffs on steel and aluminum imports that will pass later this week and Washington's approval to take certain steps against China.

G20 finance ministers and central bank officials, representing 75% of world trade and 85% of global gross domestic product (GDP), have talked about trade disruptions will be a risk to global economic growth. However, after what has been called a "polite" meeting for two days, it usually contains only an unbiased reading of opinions.

"We reaffirmed the conclusions of leaders at a high-level meeting in Hamburg [last year] about trade that recognizes the need for further talks and actions. We are working to strengthen the trade contribution for our economy," the statement said, as quoted by Reuters on Wednesday 21/3)

However, the declaration was of little concern. Against trade war because of US steel and aluminum import tariffs which come into force every Friday.

Two US officials have revealed that President Donald Trump will also use the US $ 60 billion tariff for technology and telecommunications from China later that day against Beijing's intellectual property strategy.

As for, referring to the Hamburg Declaration last year, that G20 nations must continue to resist protectionism including all forms of unfair trade practices.

However, this year's declaration concludes that G20 leaders must recognize the role of trade defense instruments an ambiguity that gives way for the US to defend itself about imposing its tariffs.

Finance Minister Steven Mnuchin defended that the tariff set by Washington was only a form of legitimate defense.

"We must be better prepared to take action to protect US interests once again, to protect free trade, justice and reciprocity," he told a news conference after the meeting.

Mnuchin adds, there is always a risk in a trade war, that President Trump has said that the US is not afraid of a trade war.

"Look at the size of our market economy, and the fact that we have a deficit in trading," Mnuchin said.

As for the matter of steel and aluminum, he added, this action was taken as a result of unfair practices against the US and that's how Uncle Sam responds.

Canadian Finance Minister Bill Morneau, compared the meeting in Buenos Aires with his previous meeting in Hamburg. At that time, Mnuchin was very persistent in order to rewrite the declaration in trade.

But now, the whole world has a better understanding of the US view and how trade rules should work.

"There is not too much consensus, everyone does not have the same opinion, but there is a clearer understanding of what they [US] are trying to achieve," Morneau said.

As for the EU, the US trading partner, who requested an exemption from tariff placement does not seem to be successful. The EU is also preparing counter-rate measures against US products.