G20 to address global trade imbalances

The G20 countries, in their summit in Seoul in November, said they would enhance cooperation to promote external sustainability and pursue policies conducive to reducing trade imbalances and maintaining imbalances at sustainable levels.

Leaders of the world’s biggest economies agreed to develop indicative guidelines composed of a range of indicators, which would serve as a mechanism to facilitate identification of large imbalances that required preventive and corrective actions.

A joint communiqué said the Framework Working Group, under the G20 leadership, would be responsible for developing these indicative guidelines, with progress to be discussed by G20 finance ministers and central bank governors in the first half of 2011.The G20 also agreed to implement “structural reforms” to contribute to global rebalancing.

The G20 affirmed commitment to free trade and investment recognizing its central importance for global recovery, and “unwavering commitment to resist protectionism in all forms”.

“We will refrain from introducing, and oppose protectionist trade actions in all forms and recognize the importance of a prompt conclusion of the Doha negotiations,” the statement read (Xinhua, 12.11.10, news.xinhuanet.com).