During the upcoming G20 finance ministers summit in US, European Union (EU) officials are planning to call on the G20 to tackle structural and underlying challenges to the international flow of goods and services that threaten to hinder global economic growth.
According to reports,the EU is concerned with the threats posed by (a)higher tariffs (b)slowing consumer demand and (c)weakening manufacturing activity across the globe.
The United States and China are also engaged in intense negotiations to end a months-long trade war that has affected global markets.Further, U.S. is also in talks with the EU on a trade deal after the US had imposed tariffs on European steel and aluminium in 2018 and is threatening to impose tariffs on European cars.
It is also important to note that the US has reservations about the World Trade Organization(WTO) which it believes is unable to tackle modern trade challenges and issues such as intellectual property theft.However, EU believes the WTO is the best way to deal with trade disputes but that it should be reformed to address U.S. and its own concerns.
The Group of Twenty (G20) is an international forum that brings together the world’s 20 leading industrialized and emerging economies.The group accounts for 85% of world GDP and two-thirds of its population.
Much of the important business takes place on the sidelines and in informal meetings.Initially attendance at G20 summits was limited to the finance ministers and central bank governors of members when it was established in 1999.