G20 Finance Track meetings to address trade uncertainty and global economic imbalances

THE G20 Finance and Central Bank Deputies meeting on Monday outlined how the upcoming discussions will revolve around enabling a conducive environment for constructive dialogue on pivotal global trade issues.

- YOGASHEN PILLAY

This comes as the United States, the world's largest economy, has created uncertainty across global trade by imposing hefty reciprocal import tariffs on its trading partners, including emerging economies whose size pales in comparison to the US.

Dr Rashad Cassim, deputy governor of the South African Reserve Bank, said the World Trade Organisation was the global institution that has been working for decades to create fairness in the global trading system.

However, Cassim said the G20 has a broader mandate than the world trade system.

"So, the challenge we're going to face at this meeting is really having a conversation around the table to kind of assess what exactly is the source of imbalances in the global economy," he said.

"Are there real concerns that some countries are more protectionist than others? So, it's really about creating an environment where you can have a constructive conversation on trade issues."

Cassim said that uncertainty was a two-sided problem.