G-20 Espouses Trade Reciprocity, Drops Some Anti-Protectionist Language in Joint Statement
G-20 leaders in this year’s joint summit communique (here) added language highlighting the “importance of reciprocal” trade relations and recognizing “the role” of “legitimate trade defence instruments,” but deleted certain language voicing nations’ resistance to protectionism. Published on July 8, as the 2017 G-20 leaders summit was concluding in Hamburg, Germany, the communique’s only reference to protectionism stated countries will “continue to fight protectionism,” whereas the 2015 (here) and 2016 (here) joint communiques opposed “all forms” of protectionism. This year’s omission is similar to traditional language absent from March’s G-20 finance ministers’ meeting statement (see 1703200010). The omission came at the apparent urging of Treasury Secretary Steven Mnuchin.
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International Chamber of Commerce G20 Advisory Group Chairman Marcus Wallenberg in a statement (here) asserted that the G-20 Hamburg Summit maintained the group's long-standing stance to "fight against protectionism in all its forms," adding that "newly introduced concepts should not become a pretext for protectionism."
Mnuchin said during a July 8 press gaggle (here) aboard Air Force One that the leaders’ statement indicates the G-20 has come a long way since the finance ministers’ communique, which had one sentence on trade and was “kind of 19 to 1, me being the one.” The July 8 communique “incorporates the concept of reciprocal and fair trade,” he said. “And I think there was a real focus on dumping and other issues on steel. I think there was an incredible consensus, and now it's many months later.” As opposed to the 2016 version, the 2017 leaders’ communique recognized legitimate “trade defence instruments” in the context of countering unfair trade practices as well as the “importance of reciprocal” trade and investment frameworks, and the “principle of non-discrimination.”
G-20 leaders are looking forward to a “substantive report” from the Organization for Economic Cooperation and Development-led Global Forum on Steel Excess Capacity “by November,” including concrete solutions to reduce steel overcapacity, the communique says. Leaders called for forum members to meet commitments to enhance information sharing and cooperation by August, and provide “progress reporting” in 2018. The 2017 leaders’ statement also welcomed the entry into force of the World Trade Organization Trade Facilitation Agreement, calling for its full implementation, including technical assistance to developing countries. The agreement entered into force in February (see 1702220007).
President Donald Trump during the summit highlighted the U.S.’s $800 billion trade deficit in goods in 2016, and “how he wants to rectify that and how we're going to fight to level the playing field on trade,” National Economic Council Director Gary Cohn said during the gaggle.
The Convention on International Trade in Endangered Species of Wild Fauna and Flora praised (here) the communique's commitment to address illegal wildlife trade. “We will intensify our fight against corruption related to illegal trade in wildlife and wildlife products," the communique says. "Wildlife trafficking is a threat to the planet’s biodiversity, economic development, and, among others, health and security, and is facilitated by high levels of corruption, which the G20 cannot tolerate."