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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lakecity55's picture

Trump has bigger balls than Chuck Norris, and Chuck has to carry his around in a wheelbarrow!

 

Sledge-hammer's picture
Sledge-hammer (not verified) Mar 18, 2017 5:25 PM

Great to see our Trumpenfuhrer Trumpendick-slapping the rest of the cucky world into line.

lakecity55's picture

Haha, Trump Strikes Again!

Kiss my American Patriot Ass, Globoholios!

ronthefisherman's picture

All the World's coral reefs are currently dieing (including Australia's famous Great Barrier Reef) thanks to two consecutive years of hot ocean water, that is getting hotter every year.

Those corals thar died will not regrow in your lifetime -

But not to worry - climate change is bullshit, invented by the Chinese .

The stupidity of Donald Trump is beyond belief...!

hoyeru's picture

it's not stupidity it's sheer greed fake bullshiters like him exceed at.

BigCumulusClouds's picture

And how do you know coral reefs are dying because of hot ocean water?  You don't even know if the oceans are warming.  You know how I know this?  Because nobody has ever measured the temperature of an ocean.  To do so, is essentially impossible.  You watch too much TV.

gregga777's picture

And television is ALL United States of America's Feral Gangster Government approved Propaganda. It's not just the 'news' programs that are lying LÜGENPRESSE propaganda but the entertainment programming is also all propaganda.

KTV Escort's picture

Oh JFC shit for brains... when water temperatures are too warm the algae living within the coral are expelled, thus the white color. If warm temperatures persist for too long the corals don't recover. This in turn effects the entire reef ecosystem chain negatively. Ocean temperatures are being measured by hundreds of researchers constantly. Sea-Bird Electronics developed the best devices.

BingoBoggins's picture

Did they have the largest grants, too?

BingoBoggins's picture

Enough of this nonsense! Right, then - State your demands - I will deliver this message to our King. You will leave your Goldfish bowl as hostages.

KTV Escort's picture

excuse me, Sea-Bird Scientific, most accurate measuring systems on the planet... www.seabird.com

gregga777's picture

Ocean reefs like the Great Barrier Reef are not dying. You have swallowed the AGW (Anthropogenic Global Warming) fraud propaganda hook, line and sinker.

KTV Escort's picture

Roughly 90% of the reefs in the nothern third of the GBR bleached last year, documented fact. Most of that coral is now dead. Bleaching has begun yet again this year.

BingoBoggins's picture

ron the virtue signaling fisherman

BingoBoggins's picture

It's my fault. Thought I saw a shark and peed my wetsuit.

SmallerGovNow2's picture

The stupidity of people who think that CO2 emmisions lead to AGW is beyond belief!

CO2 + H2O + Sunlight produces O2 (Oxegen which we breath) and Plant Growth!

CO2 is plant food you moron...

artichoke's picture

This has been going on for 20 years.  I am sure it continues to get worse, but back when I was scuba diving 10 years ago the trend was clear.

Logically, if it's water temperature, then new reefs should form in cooler areas.  Polar bears can move north.  Etc.

hoyeru's picture
hoyeru (not verified) Mar 18, 2017 6:08 PM

All the posters are BS upon more BS. The truth is simple: The US ecenomy will contine to slowlly die unless Trump stops transfering all the money into the Military-Industrial Complex. And it's obvious by now he won't. Trump keeps on inventing scapegoats such as china, the Gloabal Warming while the real culpit: sending trillions on military is never talked about.

But hey, let USA suffocate its own middle Class, and kill the golden goose, Russia and CHina and the world will be the ones who come on top at the end.

MuffDiver69's picture

You forgot your other favorite: JEWS

unklemunky's picture

How wrong you are. Never ever forget, those who have the biggest weapons call the shots. So, with our new massive military we will pretty much be able to get away with anything. Besides, it is our citizenry who make us the most powerful country on the planet. We are free. Sure, you could say that is not true, but who is it that is kicking the establishment globalists asses right now? Yup, us. So, bla bla bla. Our economy once unshackled from the obama nightmare mess will exlplode. As for killing the middle class, who in the hell doyou think will be building the ships and bombs? Yup, the middle class, so, suck it you Whitney sour fuck.

Mimir's picture

Your nonsense of the “biggest military” is a logic of the wars in the very old days of our grandfathers. The US catastrophic wars the last 50 years, which all were lost, prove that bigly militaries are of no determining  factors in guerrilla types of warfare, which is the rule in todays world.   

Mimir's picture

hoyeru I agree with your first sentence, but would have written "most" in stead of "all".

It might have come to the attention of some, that this was a G20 Finance ministers meeting which is a planning meeting for the next Head States G20 meeting in Berlin. There was one main red line on the agenda of the meeting which was to prevent provoking Trump from not coming to Berlin in June. 

The final communique fulfilled that objective and pushes the difficult decisions to be solved between the Heads of States. The G20 communique for the G2 Berlin meeting will now during the coming months be negotiated by the sherpas of the Heads of States and it is in these meetings the confrontation between Trump (plus Japan (maybe) and Saudi Arabia( maybe)) and the rest of the main economic powers of the world will happen. 

Too early for anyone to call victory for anyone. Probably they will all be losers in June.

BigCumulusClouds's picture

In Wisconsin Walker put the screws to the government unions with the exception of the cops.  When we asked him about this, he said "it was too dangerous to include them.  We needed their protection to do the job on the other unions."  Same thing with Trump, if he went after the MIC he'd have no firends in Washington, and he'd be a dead man.  Go ask JFK.  He needs the military to protect him from the spooks and the secret society folks.  We have decades of sell out leadership to undo.  It can't happen over night.

inosent's picture

You are right about the entire western economy being supported by the MIC. Perpetual war, cold, hot, or lukewarm is needed to justify its existence. Pull the plug on the MIC  will lead to chronic and indefinite negative GDP.

TeethVillage88s's picture

We are a Credit/Debt based Economy, so Total usury each year is what? $1 Trillion?

We spend $1.4 Trillion each year on Medical in Federal Medicare & Medicaid, but that doesn't include States Medicaid which is another $200 Billion or more. That doesn't include Premiums for Insurance, nor OTC Drug, Nor Out of Pocket what people pay for themselves.

We spend $1 Trillion Annually in the USA on the MIC, Security Industry

Looks like the FICA Tax, Medicare, Retirement to Federal Govt, Social Security, unemployment insurance is like $1 Trillion Annually

Education is $1.1 Trillion Annually, mostly out of Property Tax or State Tax

$2.5 Trillion is the total we have in Education Debt, Auto Loans, Credit Cards

$8.25 Trillion in Mortgage Debt

http://www.zerohedge.com/news/2017-02-07/over-25-trillion-us-student-and...

http://evocm.com/consumer-credit-in-the-united-states/

https://www.federalreserve.gov/releases/g19/current/

William Dorritt's picture

May be a short term move 2/3 of the Navys Planes can't fly....

Wilcox1's picture

Love the work by Steven Mnuchin.

artichoke's picture

Likewise.  Maybe Tillerson helped out there too.

People complain about too much Goldman Sachs (and big oil.)  Well, G-S are killers, and now we have the best of Goldman, working for us!  They are being directed by Trump, who promised to deploy the best killers on our behalf.

BigCumulusClouds's picture

Let me tell you what global warming is all about.  It is about finding a new revenue source, that is, a carbon tax, to keep the debt based currency system going.  The present income tax revenue is no longer great enough to fund the outstanding debts in the various countries throughout the world.  The central bankers have therefore had to resort to ZIRP and NIRP.  But they can only do that for so long.  If they don't get the additional revenue, we go into a major deflationary depression since all currencies today (are debt that) must have revenue to keep them in circulation.  And going into a deflationary depresion without disarming the American people is very dangerous.  This is why Obama was doing all those fake shootings.  You can thank God for Trump on both of these issues.

inosent's picture

#imwithTrump

Too bad he'll be gone in 4-8 years.  Enjoy it while it lasts. The next guy is gonna really suck for sure.

Call 202 456-1111 and tell the President he has your support.

artichoke's picture

If we really like him we can always follow with Ivanka.  Or Eric, that is a very impressive individual and even taller than Donald.  Did you see him handle the press in the 2 or 3 interviews he did during the campaign?  Effortless domination.

gregga777's picture

The Intellectual Yet Idiot classes ruling morons plan to send 100,000+ factories and 20,000,000+ good paying jobs to their good Communist buddies in the People's Republic of China made them ever more fabulously rich in the short term at the expense of everyone else.

Decades of low interest rates and then ZIRP by Intellectual Yet Idiot classes at the Goldman Sachs Feral Reserve System led to tremendous underfunding of government pension plans and the starvation of CONporate pension plans from declining and underpaid work forces and even outright CONporate bankruptcies. The Goldman Sachs Feral Reserve System morons mock us by claiming that the US unemployment rate is only 5%. But, the ~96,000,000 unemployed working aged Americans don't pay into any pension plan. Neither do the ~45,000,000 dependent on SNAP EBT benefits for their food. So, yet another fabulously disastrous moronic policy from the Intellectual Yet Idiot classes ruling morons.

And to add frosting on top of that steaming pile the Intellectual Yet Idiot classes ruling morons let the banking gangsters and CON Street Swindlers get away Scot-Free after stealing $11,000,000,000,000 ($11 TRILLION) causing the Great Financial Crisis and the Greater Depression. Then they gave them $16,000,000,000,000 ($16 TRILLION) in loan guarantees. Then they gave them $8,000,000,000,000 ($8 TRILLION) stolen from retirees, savers and pension plans with near-ZIRP and ZIRP.

Something tells me that things aren't going to work out so well for the Intellectual Yet Idiot classes ruling morons in the long term. Do they really think that their bodyguards are going to protects them when screaming, blood thirsty mobs come for the heads of them and their precious, privileged and protected children? Their bodyguards will probably be leading the mobs. I hope to bag a few myself. Sweet dreams morons.

slightlyskeptical's picture

Long oil...dollar is about to get spanked.

 

BingoBoggins's picture

And what has each succeeding G nation org. tried to do with currencies again?

masons's picture

wait, is this LaFart sitting the first raw, third from left

ds's picture

Great. The entropy of a G Zero World in full force. Arguably, top leaders mostly ill advised by their mainstream economists still consider trade flows from the real economy that largely impacts their current account surpus/deficit is more important in today's global economy with a large financial economy component. It is the capital account that matters more.

The G20 is spintered and can only undergird the the US dollar as the global reserve system (no alternative). How the US uses it to rule economies and prevents it from from weakening its own economy is a challenge. Not a formidable challenge, just the will to be a top dog and with it the the needed balance to trickle down to its own People (inclusiveness). Draining the swamp is one imminent step to pry open non-idelogical debate on economic policy in ushering in the 4th Industrial Revolution. 

US will go down economically because it brings itself down and not by others. 

 

artichoke's picture

So the G20 was waiting to fall into our lap, and all that was needed was Tillerson and Mnuchin to go and say to them "no" to their other plans.

Gee thanks Obama for making us far less than we could be for so long, trying to fundamentally transform the USA.  Fortunately you didn't quite succeed.

tuetenueggel's picture

Weidmann is a softy and leftish whinery boy. Forget him. Simply forget him.

His Job is to protect our currency. He did nothing but only smiling and standing at sideline watching Germoney die.