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[size=30][ltr]IMF and World Bank meetings conclude in Washington[/ltr][/size][ltr]American optimism with historic agreement with China[/ltr]
[ltr]April 15, 2019
[ltr]World Bank chief Christine Lagar and David Malpas at the spring meetings of the two institutions in Washington,
Washington: Middle East
While fears of a global economic downturn dominated the discussions of the Spring Meetings of the International Monetary Fund and the World Bank in Washington, which ended yesterday, and the file of the war of trade was one of the most important factors threatened by this recession, the statements from the American side suggests the near reach of the agreement With China ending the war, but the Chinese side issued at the same time statements on the subject seemed less optimistic.
"We have a hope to get closer to the last circle of negotiations to find a solution to the problems," US Treasury Secretary Stephen Manuchen told a news conference on Monday.But he refused to talk about any date, stressing that "the most important" is to complete the negotiations well instead of imposing an "arbitrary date."
"We are making progress, I want to be careful," Manouchein said. "This is a very detailed agreement covering topics that have not been dealt with before. This is a path that goes beyond anything like a bilateral investment agreement. "
The administration of former US President Barack Obama has sought talks on a bilateral trade deal with China, but has been stalled as China refuses to respond to US demands to open sectors of its economy to foreign investment. While the administration of the next president Donald Trump chose to engage in a tariff war with China to force it to pursue fairer trade and investment rules from its point of view.
Menuchin said the two sides were discussing a seven-chapter agreement that would be "the most important change in trade relations in 40 years" as he put it. He noted that the agreement would have conditions to ensure implementation by both sides and that the United States would be prepared to impose sanctions on it if it failed to implement its commitments.
However, the remarks made by Chinese Vice-President Shen Yulu during the meetings were less positive in the eyes of the observers. He said in a statement of the International Monetary and Financial Committee in the IMF that the increase in trade protectionism in the form of punitive tariffs began to disrupt the global supply route. He considered that the protectionism of some countries Has damaged mutual trust between countries, limited bilateral cooperation and hindered the desire to achieve it.
"Unilateral measures and trade protection can only aggravate internal imbalances and weaken the necessary structural reforms, which could adversely affect the countries concerned as well as global growth."
The United States and China have been engaged in tough negotiations since January on a broad trade deal that is supposed to allow an end to a trade war that has escalated over the past year. This war slows global growth, which is expected to reach 3.3 percent this year, compared to 3.6 percent last year.
But on the assumption that the world's two largest economic powers will reach an agreement soon, the IMF expects growth to be 3.6 percent in 2020.
Fund manager Christine Lagarde stressed that the world economy was facing a "sensitive" phase, but that the situation could improve if countries made the right decisions and "did not harm growth" by, for example, abstaining from taking protective measures.
Trump seeks to reduce the US trade deficit with China, put an end to forced technology transfer, reduce China's financial support to public companies and end intellectual property theft.
"An exchange of goods and services is free, fair and beneficial to all parties and investments are the main drivers of growth and creation of jobs," said Central Bank of South Africa Governor Lesitsa Ganyago, head of the IMF's Monetary and Financial Committee.
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