BUENOS AIRES (Reuters) - The leaders of the world’s largest economies on Saturday backed an overhaul of the global body that regulates international trade disputes, ahead of high-stakes talks between U.S. President Donald Trump and Chinese President Xi Jinping aimed at defusing a trade war.
The Group of 20 industrialized nations called for reforms to the crisis-stricken World Trade Organization in a final statement from a two-day gathering in Argentina, marking a victory for Trump’s drive to overhaul the trade body.
Officials expressed relief that agreement on a final statement was reached after negotiators worked through the night to overcome differences over language on climate change.
The final text recognized trade as an important engine of global growth but made only a passing reference to “the current trade issues,” after the U.S. delegation won a battle to keep any mention of protectionism out of the statement.
In addition to tariffs on Chinese goods, Trump has imposed tariffs on steel and aluminums imports into the United States this year. Numerous countries have filed litigation at the WTO to contest the levies.
The United States is unhappy with what it says is the WTO’s failure to hold Beijing to account for not opening up its economy as envisioned when China joined the body in 2001. The European Union is also pushing for sweeping changes to how the WTO operates.
“Notwithstanding our differences, we have been able to agree a path forward at the G20,” French President Emanuel Macron told a news conference. “The United States has endorsed a clear multilateralist text.”
G20 delegates said negotiations on the final summit statement proceeded more smoothly than at a meeting of Asian leaders two weeks ago, where disagreements on protectionism and unfair trading practices prevented a consensus.
