Trump Wins: G-20 Drops ‘Anti-Protectionist, Free-Trade, & Climate-Change Funding’ Pledge
By Tyler Durden – Zero Hedge
[FF Editorial: Major victory for Trump’s policies on trade and a major defeat for the lobby of the cock and bull propaganda of Climate Change. USA is the biggest market in the world and all countries want to export to UAS. It is utterly stupid for policy makers to ignore Trump’s policies and not adapt to the fast changing global scenario. Malaysia must wake up to the new reality and stop the idiotic “bury the head in the sand” attitude if she wants to succeed in the new global environment.]
After delays and hours of discussions amid tensions over ‘trade’ comments between the United States and the rest of The G-20 , it appears President Trump has ‘won’. While China was “adamantly against” protectionism, the finance ministers end talks without renewing their long-standing commitment to free trade and rejection of protectionism after US opposition.
The world’s financial leaders are unlikely to endorse free trade and reject protectionism in their communique on Saturday because they have been unable to find a wording that would suit a more protectionist United States, G20 officials said.
This would break with a decade-old tradition among the finance ministers and central bankers of the world’s 20 top economies (G20), who over the years have repeatedly rejected protectionism and endorsed free trade.
But the new administration in the United States is considering trade measures to curb imports with a border tax and would not agree to repeat the formulations used by previous G20 communiques, clashing with China and Europe, the officials said.
“Unless there is a last minute miracle, there is no agreement on trade,” one official, who declined to be named, told Reuters . “This is not a good outcome of the meeting,” a G20 delegate quoted Bundesbank President Jens Weidmann as saying.
In a partial face-saving move, as The FT details , G20 finance ministers meeting in the German resort town of Baden-Baden noted the importance of trade to the global economy, but dropped tougher language from last year that vowed to “resist all forms of protectionism”.
The new communique said: “We are working to strengthen the contribution of trade to our economies. We will strive to reduce excessive global imbalances, promote greater inclusiveness and fairness and reduce inequality in our pursuit of economic growth.”
The watered-down commitments on free trade reflected the anti-globalisation mood that Donald Trump has brought to Washington and came in the first G20 meetings between Steven Mnuchin, the new US Treasury Secretary, and his foreign counterparts.
US Treasury Secretary Mnuchin spoke to reporters after the meeting:
- *MNUCHIN: LOOKING FORWARD TO WORKING CLOSELY W/ G-20 COLLEAGUES
- *MNUCHIN: CONFIDENT U.S. CAN WORK CONSTRUCTIVELY WITH PARTNERS
- *MNUCHIN: U.S. BELIEVES IN FREE, BALANCED TRADE
- *MNUCHIN SAYS WILL LOOK AT TRADE SURPLUSES WITH VIEW TO CORRECT
- *MNUCHIN SAYS MULTILATERAL AGREEMENTS HAVE VERY IMPORTANT PLACE
- *MNUCHIN SAYS U.S. WANTS TO RE-EXAMINE TRADE DEALS INCL. NAFTA
- *MNUCHIN: U.S. BELIEVES IN APPROPRIATE REGULATION
- *MNUCHIN SAYS IMPORTANT BANKS CAN PROVIDE LIQUIDITY IN MARKETS
Reuters also points  out another potential win for Trump as the communique will also drop a reference, used by the G20 last year, on the readiness to finance climate change as agreed in Paris in 2015 because of opposition from the United States and Saudi Arabia.
“Trump has called global warming a “hoax” concocted by China to hurt U.S. industry and vowed to scrap the Paris climate accord aimed at curbing greenhouse gas emissions.
“Trump’s administration on Thursday proposed a 31 percent cut to the Environmental Protection Agency’s budget as the White House seeks to eliminate climate change programs and trim initiatives to protect air and water quality.
“Asked about climate change funding, Mick Mulvaney, Trump’s budget director, said on Thursday, “We consider that to be a waste of money.”
The G20 do agree, however, to show continuity in their foreign exchange policies, using phrases from the past on foreign exchange markets.
As we noted earlier,  needless to say, such an acrimonous end to the weekend’s summit would likely result in a surge in FX volatility when markets open for trading late on Sunday, reflecting the new state of global trade flux, in which the future of the US Dollar is completely unknown, and reflecting the emerging chaos over the future parameters of trade.
Commentary By Alan Knutson
“The watered-down commitments on free trade reflected the anti-globalisation mood that Donald Trump has brought to Washington and came in the first G20 meetings between Steven Mnuchin, the new US Treasury Secretary, and his foreign counterparts.”
This is why Trump put the Goldman Sachs Jew Steve Mnuchin in place as Treasury Secretary–no Gentile would have been able to pull this off.
This was a critical event to taking back the American economy but it will get little if any coverage in the JMSM. Lesser still will be people’s understanding of what just happened. But, maybe that doesn’t matter–perhaps ignorance is bliss for the masses, I don’t know? But good for Mr. Trump.
The times they are a changin’……. 🙂