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Lagarde: The “immediate priority” of the G20 is to resolve trade tensions

 Washington, .- The Managing Director of the International Monetary Fund (IMF), Christine Lagarde, warned today that resolving the current commercial tensions is “the immediate priority” ahead of the G20 presidential summit to be held later this month in Japan .

“The immediate priority is to resolve the current commercial tensions, while the modernization of the international trading system is carried out,” Lagarde said in a blog before the summit of the major advanced and developing economies.

In this regard, he warned that the tariff war with China, launched by President Donald Trump, and responded with similar measures by Beijing, could reduce world GDP by half a percentage point in 2020, equivalent to 455,000 million dollars.

“The risk is that the more recent tariffs between the US and China could further reduce investment, productivity and growth.” The US proposal of tariffs on imports to Mexico is also a concern. “, explained Lagarde when disclosing the traditional report of the international organization before the annual meeting of the G20.

As a consequence of these tensions, the Fund already reduced its global growth forecasts in April to 3.3% by 2019.

The director of the IMF stressed that “the way to avoid these self-inflicted wounds” is “eliminating recently implemented trade barriers and avoiding commercial obstacles in any way”.

The G20 summit in Osaka (Japan), which will take place on June 28 and 29, will bring together the main world leaders, including Trump and Chinese President Xi Jinping, who are expected to hold a meeting to discuss the trade dispute. .

Trump raised tariffs last month from 10% to 25% to Chinese imports worth 250,000 million dollars, and last week threatened to impose a tax of 5% on all products from Mexico from next June 10 .

Precisely, this Wednesday a Mexican delegation meets in Washington, led by its foreign minister, Marcelo Ebrard; with an American, led by Vice President Mike Pence, and Secretary of State, Mike Pompeo, to try to reach an agreement.

Ebrard has described the threat of tariffs as “counterproductive” given the close bilateral trade integration.
Currently, the country is Mexico’s main trading partner.

The neighbor of the south exported between January and November of 2018 to the United States products worth 328,000 million dollars, which represents almost 80% of total exports. (EFEUSA)

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