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Bloomberg
Finance chiefs gathered in Fukuoka, Japan, for meetings of the Group of 20 are wrangling over language on how to describe global trade disputes in a communique that is to be published at the meeting’s conclusion.
A fifth draft version of the statement seen by Bloomberg News referenced the need for a ‘pressing need to resolve trade tensions’ amid an escalating conflict between the US and China. The section of text on trade was in red, indicating agreement had yet to be reached.
In the draft communique, G-20 officials said global growth appears to be stabilising, but risks remain skewed to the downside. Risks “include, in particular, intensified trade and geopolitical tensions. We will continue to monitor and address risks, and stand ready to take further action,†it read.
On currencies, the draft reiterates a pledge to not devalue in order to boost their economies’ competitiveness.
The draft communique states that the G-20 will complete a review of the International Monetary Fund’s quotas by October. It also will back a push for greater debt transparency.
Japanese officials are aiming to make their mark on the G-20 presidency by emphasising global external imbalances as a high-priority issue, with Finance Minister Taro Aso pitching before the weekend’s meetings that greater debt transparency is needed, especially among lower-income countries.
“We support the work of the Institute of International Finance on the Voluntary Principles for Debt Transparency to improve debt transparency and sustainability of private financing and look forward to follow up,†the draft reads.
Digital tax push faces hurdles
Bloomberg
The challenges of raising tax from the digital economy was the focus of a session with finance ministers from China, France, Japan, Indonesia, Britain and the US. France’s finance minister said there has to be an international solution and that the world now has to grapple with how to measure digital activities and the sale, exchange and use of data.
But reaching consensus won’t be easy. “These are complicated issues in a changing environment and something I am sympathetic to,†said US Treasury Secretary Steven Mnuchin. He agreed on the urgency of addressing the matter but not all the ideas being suggested by his counterparts.