♠ Posted by Emmanuel in Trade at 3/22/2017 05:36:00 PM
|He adds nothing: physically present, mentally absent Treasury Secretary Mnuchin.|
Finance chiefs of the world’s largest economies set aside a pledge to avoid protectionism and signed up to a fudged statement on trade instead, in response to the Trump administration’s call to rethink the global order for commerce.I do not exaggerate that it's now the G-19 after the United States abdicated on its role in global governance. In effect, it was 19 against 1:
Group of 20 nations said in a communique on Saturday that they are “working to strengthen the contribution of trade to our economies.” While the U.S. didn’t get all it wanted -- such as a explicit pledge to ensure trade is fair -- that’s a much pared-down formulation compared with the group’s statement last year, and omits a promise to “avoid all forms of protectionism.”
In two days of meetings in the German town of Baden-Baden, the argument by U.S. Treasury Secretary Steven Mnuchin, in his first appearance at an international forum in the role, reflects claims by President Donald Trump that his nation has had a bad deal from the current global trade setup. That attitude pitched him against most other delegates, who favored a multilateral, rules-based system as embodied in the World Trade Organization.
I “regret that our discussions today didn’t end in a satisfactory manner,” French Finance Minister Michel Sapin said in a statement. In a press conference later, he said that “there wasn’t a G-20 disagreement, there was disagreement within the G-20 between a country and all the others. This isn’t a caricature, this is the reality of things.”The galling thing is that while Mnuchin had some idea what his boss wasn't into--disavowal of protectionism--there was no articulation of an alternative:
Mnuchin wasn’t able to deliver a clear view on how the “America First” thrust of the Trump administration will mesh with the rules embodied in the World Trade Organization system that currently stand -- or even if the U.S. will remain substantially engaged over the long term. As the administration is less than two months old, the former Goldman Sachs banker was given the benefit of the doubt when he didn’t offer much detail.Having been instrumental in setting up the G-20 in the first place, the United States seems to be abdicating from it. Will it continue to have global policy relevance going forward? Actually, it's hardly the only international body the Yanks thought of that's having existential questions: NATO, the UN, the WTO and so forth may not continue to function as we've come to know them without American support.
Worse still, the guy behind all of this has an exceedingly poor understanding of how such bodies actually work. In his testy meeting with German Chancellor Angela Merkel:
Trump reprised his complaints that the U.S. had been treated “very, very unfairly” and poured loaded praise over German trade officials for besting their American counterparts. “The negotiators for Germany have done a far better job than the negotiators for the United States,” Trump told reporters in the East Room alongside Merkel Friday. “But hopefully we can even it out.”These are dark times, indeed, when people choose their leaders from among the most ignorant bunch.
Merkel, whose visit with her new U.S. counterpart was marked by cool distance in their public appearances, was left to explain that trade negotiations are the province of the European Union, not her government, and that there are no such German interlocutors. “We’ve transferred competencies over to the European Union,” Merkel said. “That means the European Commission negotiates these free trade agreements.”