Trump Wins: G-20 Drops 'Anti-Protectionist, Free-Trade, & Climate-Change Funding' Pledge

Tyler Durden's picture

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.
 

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Zero-Hegemon's picture

Stop, you're being rational

RightLineBacker's picture

Winning! At long last!

We finally have a President that puts the US and legal US Citizens FIRST!

If We the People will kick the donor-bribed RINOs out of Congress during the upcoming election cycles the USA will become great again and legal US Citizens will return to an almost forgotten age of prosperity.

Thank God for President Trump!

MAGA

nashville2's picture

send the weasel rinos over to the pizza party with slick and lumpy and bendover in the islands

MuffDiver69's picture

Yes. The fact Bannon has already stated they plan on running Trump endorsed candidates is being missed. The RINO/GOPe are exposing themselves nicely and their actions give many of us the long needed push to destroy them...They either play ball or the Trump party starts taking shape. I don't know anyone who voted for Trump who gives a damn about the current republican leadership...

RealityCheque's picture

Paul Ryan's wife's boyfriend thinks he's a hell of a guy!

Old Pecksniff's picture

Smart phones will be unaffordable when Trump slaps on a border adjustment tax.  Brain tumors will be eradicated.

GotAFriendInBen's picture

US has two choices

remove all regulation(a la Trumpy) so we can manufacture as cheaply and recklessly and carelessly and destructively as China or be prepared to pay 2000 for a cell phone

sheikurbootie's picture

Do you realize the world existed for a long time before cell phones? 

Why all the calculations of life, liberty and pursuit of happiness based on a useless tool?

RealityCheque's picture

But the previous way was working so well!

William Dorritt's picture

The Middle Class is Tapped Out

**************Estimated Tax Analysis**************

US Median Inc $56,600, IL taxes est
           
Marginal Tax Rate ….Effective TaxRate....Tax Amount.......Tax Type
25.00%...................... 12.58%…....................$7,047 ….........Federal
7.65% ….....................7.65%…....................$4,284...............FICA
3.75% …....................3.60%.........................$2,018..............State

$13,349 Total Income Taxes
$42,651 Income After Taxes
$14,400 Obama-Trump Care expense for family of 4
$28,851 Before you buy food and clothes for your kids

TAX SUMMARY
$13,349        Income Tax
$01,082        Sales Tax
$00,181        Fuel Tax
$05,556        Property Tax
$20,168        Total Est. Tax

36.00%            Percent  of income to taxes

https://smartasset.com/taxes/income-taxes#ORYQmP3wbk

$28,851 Available Income after Fed taxes
$01,082 Sales Tax
$00,181 Fuel Tax
$27,588 Net of all taxes
$14,400 Rent or House Payment

$13,188 Net for Food, Clothes, vacations etc.....

$396,337 Assets per Citizen
$879,243 Liabilities per Citizen: SSA, Medicare, budget

http://www.usdebtclock.org/

http://www.cnsnews.com/news/article/611318000000-feds-collect-record-inc...

shovelhead's picture

Vacations?

A weekend in Panama City or Tijuana?

William Dorritt's picture

After food, clothes, the dentist, school lunches, and a car payment, the Middle Class is upside down.

They would be lucky to be able to afford a local beach for a weekend.

crossroaddemon's picture

That's at least partly their own fault. Jesus Christ, what kind of moron pays six figures for a house? Or five figures for a car?

William Dorritt's picture

$12,500 a month does not buy you a McMansion, more like a decent 2 Br apartment in a decent neighborhood.

crossroaddemon's picture

So get the everliving fuck out of the city. Why anyone stays where shit costs that much is completely beyond me.

amadeus39's picture

Have you looked for employment in small towns lately?  Might ba able to commute to a job in the city, but the time and cost of transportation can be a real burden. It's not called a "rat race" for nothing.

 

 

brushhog's picture

I'd have to say the same kind of moron that has two kids when he's barely treading water.

brushhog's picture

No Im a little smarter than you.

Pa Kettle's picture

You completely left out the biggest bite: Federal, state, and local taxes and "fees."

brushhog's picture

Somebody making that much money shouldnt have put themself in that situation, I hate to say it but its true. Ive been there ( without the kids, I was smart enough to know I couldnt afford them ). When I was young and not making much I lived with my parents for like 10 years. I took the bus to work and I scrimped like a starving jew. In ten years, with 2% compounding interest you should have close to 150k. Then buy yourself a small house with some good land and low property taxes. Then you can find yourself a wife who also contributes, THEN you can think about having a kid ( MAYBE ). Grow a garden, find a job with benefits, make your kid a brown bag lunch. Car payment? What the fuck is that? Hey, this aint the roaring 80's anymore. Lifestyles have to adjust to reality.

monoloco's picture

Don't worry, Trump will be addressing that by slashing taxes on millionaires and billionaires.

 

SRV's picture

All in order for US based International Corporations to manhandle their market of choice, and corrupt politicians to skim $Ms from the trough of the various beneficiaries of the $1/2T military/Intel budget.

But apparently phantom (he never said he did it, and in fact the comment focus was on the behavior of the women toward a male star... but "narrative") Pussy Grabbing angst is a more pressing issue for US voters to contemplate in selecting their leaders.

Get involved... informed... vote... demand better... or keep working for "them" every day... Meh

brushhog's picture

Good point there but for a family of four living on 56k, the tax rate is actually lower because you have the standard deduction and 4k per person deduction so I think that tax rate would only be applied to about 40k, not the whole 56. Property tax and sales tax really depend on where you live, and what you buy respectively. Also the above example assumes no employer health coverage. Even so there are other expenses like reliable transportation, etc.

Its tough no matter how you slice it. I dont know how people do it. And then using your above example that somebody like that would choose to have 2 children?? You'd have to have your head examined.

TeethVillage88s's picture

I know I buy a lot of stuff to maintain the house.

- $150 a month for maint of house
- $300-$400 a month for phone, utilities, trash
- Taxes on all of that too
- and all prices have taxes built in for the company that pays his taxes.

Rumor is that all taxes taken together to the nth degree would be well over 50%... basically is like living in Europe

Maybe it is like 70% 80%. Should be a website for the old study?

http://www.zerohedge.com/news/2014-03-25/list-97-taxes-americans-pay-eve...

http://www.chapwoodindex.com/
http://www.shadowstats.com/alternate_data/unemployment-charts
http://cis.org/Camarota/Map-Number-Immigrants-Minor-Children
Immigration by the Numbers -- Off the Charts
www.numbersusa.org
http://www.truthinaccounting.org/
http://www.taxjustice.net/
http://www.marketwatch.com/story/why-your-states-public-pension-plan-is-... ($6 Trillion)
https://www.citizen.org
www.ctj.org

William Dorritt's picture

Good points

I used an online tax calc and plugged the numbers with an IL ZIP

Low IQ, low education, low skill illegals get free child delivery, free medical, pay no taxes other than sales, and have 5 kids, that gets them welfare and food stamps and all the free stuff.

joey stalin's picture

I'm lazy, stupid, and full of sh*t, so where's my Affirmative Action?

shovelhead's picture

Obama used up the last of it.

Sorry.

William Dorritt's picture

MEANWHILE BACK IN AMERCIA

McConnell and Ryan are the Leaders of the Resistance

ObamaCare Repeal..........Zero

Tax Cuts.........................Zero

Supreme Court.............. Zero

Wall............................... Zero

Budget........................... Zero

Glass Stegall.................. Zero

H1b reductions.............. Zero

Political Appointees.........Zero

Audit Fed.......................Zero

Term Limits...................Zero

 

 

crossroaddemon's picture

All this... and sans new trade deals the G20 thing is purely symbolic anyway.

Dilluminati's picture

Watching liberal judges block deportations and keep america safe, priceless

give it some time.

MAGA

 

shantyman's picture

Pedophiles- 1500 arrested

Border Wall out to bid

EPA 31% reduction

Bloated Communist Department of Education 35% reduction

Federal defunding of abortion- Underway

Wedding Parties droned- ZERO

Doctors Droned- ZERO

Innocent civiiians DronedZERO

President bragging about "being pretty good at killing people"- ZERO

Gun Running- ZERO

 

TeethVillage88s's picture

Good list. I don't have one like that. I have the long chart of his campaign promises. I need to review.

crossroaddemon's picture

This is just symbolic; it'smeaningless unless actual modified trade agreements follow. Which congress will not pass, and Trump knows that. Smoke and mirrors; theater for the masses.

William Dorritt's picture

It's a start.....

Trump is the 70 yard Hail Mary Pass for the US and the World.

Elite Republicans and Dems are trying to block completion.

crossroaddemon's picture

They're gonna win too. Know why? Trump is on their side.

One World Mafia's picture

It's already come out there will be no decrease in US debt and the military budget is going up.  The people of Syria and Yeman lose.

amadeus39's picture

The "people" of Syria and Yeman would not get any money regardless. Our foreign aid never goes to the "people". 

 

One World Mafia's picture

Not what I meant.  They lose because the US will use the money for more war.

U4 eee aaa's picture

It just goes to show most of them are just a bunch of sheep going along with their biggest customer.

Politician:

Someone who has a firm resolve to follow what everyone else is doing

rockstone's picture

"This is not a good outcome of the meeting," a G20 delegate quoted Bundesbank President Jens Weidmann as saying.'

It's not a good outcome for you fucko. You and your fucking Euro trash bank. Don't think for a minute that your statement applies to everyone.

crossroaddemon's picture

You do understand that this G20 shit is purely symbolic, right? It only has meaning if revised trade agreements can be rammed through congress, and if you think that will happen excuse me whilst I laugh in your face. The only thing The Orange Assclown is winning is meaningless soundbites on the news he claims to despise so much.

One World Mafia's picture

The orange orangutang needs the money for warmongering.

rockstone's picture

Then why is this moron pissed?

Free Man's picture

Hey dumsky, he WON the election.

He's been in office less than 2 months and irrrelevant Marxists like you are having girly hissy fits. LOL

We're just beginning.

Trump surging:
http://www.breitbart.com/big-government/2017/03/15/52-voters-approve-tru...

Undercover video shows Democrat operatives admitting they incited violence at Trump rallies
https://www.conservativereview.com/commentary/2016/10/undercover-video-s...

Sonnie Johnson at CPAC: ‘Systemic Racism and White Supremacy’ Belong to the Democrats
except: “Every single aspect of systemic racism and white supremacy they have pushed remains on the Democratic side,” she said, later adding: “They came from the Democrat side and they remain on the Democrat side.”
http://www.breitbart.com/big-government/2017/02/25/sonnie-johnson-at-cpa...

 

 

amadeus39's picture

Despise the MSM? He loves them when they rise to the bait.

 

BingoBoggins's picture

If a Global Systemically Important Bank (G-SIB) fails in the economy, yet nobody acknowledges it ... ?