Prime Minister Narendra Modi on Friday put forward a five-point approach to address common challenges facing the world, including protectionism, unilateralism at global financial organisations like the WTO and terrorism.

<a href="https://www.wionews.com/india-news/terrorism-biggest-threat-to-humanity-pm-modi-at-informal-brics-leaders-meeting-in-osaka-231033">Speaking at the informal BRICS leaders' meeting</a> in Osaka, PM Modi said that there was an immediate need to strengthen the WTO, fighting protectionism, ensuring energy security and work together to fight terrorism.

"Today I will focus on three major challenges. First, the recession and uncertainty in the world economy. Unilateral decisions and rivalries are overshadowing rule-based multilateral international trade systems," PM Modi said.

"On the other hand, the lack of resources is reflected in the fact that there is a shortage of an estimated $1.3 trillion in investment for emerging market economies," he said.&nbsp;

He said making development and progress inclusive and sustainable is the second major challenge.

"Rapidly changing technologies such as digitisation and climate change are concerns not just for us, but also for future generations. Development is in the right direction when it reduces inequality and contributes to empowerment," the prime minister said.&nbsp;

Watch:&nbsp;In BRICS meet on sidelines of G20 summit, PM Modi highlights the issue of terror

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Terror is the biggest threat to all humanity, he said.

"It not only takes the lives of innocent people, but also has a negative effect on economic progress and social stability," PM Modi said.

"There is a need to stop all the mediums of support to terrorism and racism," PM Modi said.

Talking about his five-point approach to tackle these challenges, PM Modi said the ill effects of unilateral decisions can be addressed to an extent by the coordination between the BRICS countries.&nbsp;

"We need to emphasise on the necessary reforms in international financial and business institutions and organisations for improving multilateralism," he said.&nbsp;

Energy resources like oil and gas should be available at low prices regularly for continuous economic development, the prime minister said.

For sustainable and inclusive development, the New Development Bank should give priority to the investment in the physical and social infrastructure and renewable energy programmes of member countries.

The New Development Bank is a multilateral development bank established by the BRICS states -- Brazil, Russia, India, China and South Africa.

India's initiative for Coalition for Disaster Resilient Infrastructure will help in the development of appropriate infrastructure in developed and&nbsp; 
developing countries to face natural calamities, PM Modi said.

"I invite you to join this coalition," he said.

"The movement of skilled workers around the world should be made easy. This will also benefit the countries where a large part of the population has crossed the working age," PM Modi said.

For fighting terrorism, the prime minister called for organising a global conference on terrorism.

"I have recently called for organising a Global Conference on Terrorism. Lack of necessary consent to fight against terrorism can not keep us inactive," he said.

Prime Minister Narendra Modi on Friday put forward a five-point approach to address common challenges facing the world, including protectionism, unilateralism at global financial organisations like the WTO and terrorism.

Prime Minister Narendra Modi on Friday put forward a five-point approach to address common challenges facing the world, including protectionism, unilateralism at global financial organisations like the WTO and terrorism. Speaking at the informal BRICS leaders' meeting in Osaka, PM Modi said that there was an immediate need to strengthen the WTO, fighting protectionism, ensuring energy security and work together to fight terrorism. "Today I will focus on three major challenges. First, the recession and uncertainty in the world economy. Unilateral decisions and rivalries are overshadowing rule-based multilateral international trade systems," PM Modi said. "On the other hand, the lack of resources is reflected in the fact that there is a shortage of an estimated $1.3 trillion in investment for emerging market economies," he said. He said making development and progress inclusive and sustainable is the second major challenge. "Rapidly changing technologies such as digitisation and climate change are concerns not just for us, but also for future generations. Development is in the right direction when it reduces inequality and contributes to empowerment," the prime minister said. Watch: In BRICS meet on sidelines of G20 summit, PM Modi highlights the issue of terror Terror is the biggest threat to all humanity, he said. "It not only takes the lives of innocent people, but also has a negative effect on economic progress and social stability," PM Modi said. "There is a need to stop all the mediums of support to terrorism and racism," PM Modi said. Talking about his five-point approach to tackle these challenges, PM Modi said the ill effects of unilateral decisions can be addressed to an extent by the coordination between the BRICS countries. "We need to emphasise on the necessary reforms in international financial and business institutions and organisations for improving multilateralism," he said. Energy resources like oil and gas should be available at low prices regularly for continuous economic development, the prime minister said. For sustainable and inclusive development, the New Development Bank should give priority to the investment in the physical and social infrastructure and renewable energy programmes of member countries. The New Development Bank is a multilateral development bank established by the BRICS states -- Brazil, Russia, India, China and South Africa. India's initiative for Coalition for Disaster Resilient Infrastructure will help in the development of appropriate infrastructure in developed and developing countries to face natural calamities, PM Modi said. "I invite you to join this coalition," he said. "The movement of skilled workers around the world should be made easy. This will also benefit the countries where a large part of the population has crossed the working age," PM Modi said. For fighting terrorism, the prime minister called for organising a global conference on terrorism. "I have recently called for organising a Global Conference on Terrorism. Lack of necessary consent to fight against terrorism can not keep us inactive," he said.

PM Modi puts forward five-point approach to tackle unilateralism, protectionism at G20 Summit

You must have heard what Donald Trump has been doing over the past few weeks or from the time he became US President i.e. taking crazy decisions in the name of 'Let's make America great again'. We understand that he wants to help the steel and aluminum industry, and therefore he's announced plans for protective tariffs, claiming that "Trade wars are good and easy to win". He is also correct when he says that this has been a problem for decades.

However, while he has the right intentions and he took the decision which also looks right as well, yet he made the mistake which most of us do by 'thinking only at the first level'.

First level thinking talks about not diving deeper into the issues and not understanding the implications of our actions but taking the decisions on their face value. We will talk more about first order thinking, but let's first talk about 'US's tryst with Protectionism'.

Let's go back to the Second World War. During that era the US used to produce three-fourth of the steel worldwide and it was felt that the same situation will continue for a long time. However, after the World War, the US kept working with its old technologies and Europe & other countries moved to newer technologies which were 50 per cent cheaper than that employed by the US.

In 1959, the Congress felt that the US is losing its dominance and called for a meeting of all the big steel barons who said, "We have examined the production capabilities of other countries though they don't match up with the capabilities of the US firm."

In 1960s they finally realised their mistake, but were too late as the countries from Europe and other parts of the world had started dominating the steel space. But, there is a twist in the story. In the 1960s, a man named Ken Iverson started a steel business that became Nucor. Iverson started making steel using the electric arc process, building the first American facility in 1969. It began growing at an exponential rate, competing rather effectively with foreign producers, to say nothing of other American producers.

As other steel producers begged for protectionist policy, Iverson mocked the idea. In an interview in 1986, Iverson noted that protectionist measures already instituted hadn't had the desired effect. "As soon as prices began to rise and the steel companies began to be profitable, they stopped modernising," he said. "It's only under intense competitive pressure - both internally from the mini-mills, and externally from the Japanese and the Koreans - that the big steel companies have been forced to modernise."

Nucor has since become the nation's largest domestic steel producer. Yet, it has started to act like the Big Old Steel boys of US. After Trump announced the tariff, Nucor's CEO vigorously applauded the move, claiming it was long overdue.

But before Nucor joins the protectionist parade, it might want to recall the words of Iverson, who died in 2002, when his company was on the way to the top: "Unless you're under intense competitive pressure and it becomes a question of the survival of the business to do it, you're just going to lapse back into your old ways. There's no other answer."

The moral of the story is that if Trump had gone a bit deeper into the issue and looked at the trade restrictions imposed by his predecessors George W Bush and Barack Obama, he would have realised that trade restrictions end up doing more harm than good. Lightly informed economic adventurism by the US President is not good for the US and it is not good for the world.

Coming back to the second-order thinking, Howard Marks explains the concept as "First-level thinking is simplistic and superficial, and just about everyone can do it (a bad sign for anything involving an attempt at superiority). All the first-level thinker needs is an opinion about the future, as in 'The outlook for the company is favourable, meaning the stock will go up'. Second-level thinking is deep, complex and convoluted."

Second-order thinkers take into account a lot of what we put into our decision journals. Things like what are the key variables and how do they interact? Where is the leverage? And if I take this action, what happens next?

First-order thinkers look for things that are simple, easy, and defendable. They fail to realise that they are dealing with complex systems, or if they do realise it, they mistake cause-and-effect relationships. They are incapable of thinking in terms of second and subsequent steps. And, more fundamentally, they are generally unaware of the need to think in terms of second steps.

Second-order thinkers, on the other hand, think in terms of interactions, time, and system dynamics. They are aware of iatrogenics (when a treatment causes more harm than benefit) and our bias toward intervention.

First-level thinkers all look alike. They think the same way other first-level thinkers do, and they usually reach the same conclusions. This is where things get interesting. Extraordinary performance comes from being different. It must be that way. Of course, below average performance comes from being different, too - on the downside. But the road to out-thinking people can't come from first-order thinking. It must come from second-order thinking.

So next time you need to think about something, do one of two things: First, start digging below the surface of people's opinions and ask them why they think what they think. And second, ask them to take the other side of the argument.

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

First-level thinkers all look alike. They think the same way other first-level thinkers do, and they usually reach the same conclusions.

You must have heard what Donald Trump has been doing over the past few weeks or from the time he became US President i.e. taking crazy decisions in the name of 'Let's make America great again'. We understand that he wants to help the steel and aluminum industry, and therefore he's announced plans for protective tariffs, claiming that "Trade wars are good and easy to win". He is also correct when he says that this has been a problem for decades. However, while he has the right intentions and he took the decision which also looks right as well, yet he made the mistake which most of us do by 'thinking only at the first level'. First level thinking talks about not diving deeper into the issues and not understanding the implications of our actions but taking the decisions on their face value. We will talk more about first order thinking, but let's first talk about 'US's tryst with Protectionism'. Let's go back to the Second World War. During that era the US used to produce three-fourth of the steel worldwide and it was felt that the same situation will continue for a long time. However, after the World War, the US kept working with its old technologies and Europe & other countries moved to newer technologies which were 50 per cent cheaper than that employed by the US. In 1959, the Congress felt that the US is losing its dominance and called for a meeting of all the big steel barons who said, "We have examined the production capabilities of other countries though they don't match up with the capabilities of the US firm." In 1960s they finally realised their mistake, but were too late as the countries from Europe and other parts of the world had started dominating the steel space. But, there is a twist in the story. In the 1960s, a man named Ken Iverson started a steel business that became Nucor. Iverson started making steel using the electric arc process, building the first American facility in 1969. It began growing at an exponential rate, competing rather effectively with foreign producers, to say nothing of other American producers. As other steel producers begged for protectionist policy, Iverson mocked the idea. In an interview in 1986, Iverson noted that protectionist measures already instituted hadn't had the desired effect. "As soon as prices began to rise and the steel companies began to be profitable, they stopped modernising," he said. "It's only under intense competitive pressure - both internally from the mini-mills, and externally from the Japanese and the Koreans - that the big steel companies have been forced to modernise." Nucor has since become the nation's largest domestic steel producer. Yet, it has started to act like the Big Old Steel boys of US. After Trump announced the tariff, Nucor's CEO vigorously applauded the move, claiming it was long overdue. But before Nucor joins the protectionist parade, it might want to recall the words of Iverson, who died in 2002, when his company was on the way to the top: "Unless you're under intense competitive pressure and it becomes a question of the survival of the business to do it, you're just going to lapse back into your old ways. There's no other answer." The moral of the story is that if Trump had gone a bit deeper into the issue and looked at the trade restrictions imposed by his predecessors George W Bush and Barack Obama, he would have realised that trade restrictions end up doing more harm than good. Lightly informed economic adventurism by the US President is not good for the US and it is not good for the world. Coming back to the second-order thinking, Howard Marks explains the concept as "First-level thinking is simplistic and superficial, and just about everyone can do it (a bad sign for anything involving an attempt at superiority). All the first-level thinker needs is an opinion about the future, as in 'The outlook for the company is favourable, meaning the stock will go up'. Second-level thinking is deep, complex and convoluted." Second-order thinkers take into account a lot of what we put into our decision journals. Things like what are the key variables and how do they interact? Where is the leverage? And if I take this action, what happens next? First-order thinkers look for things that are simple, easy, and defendable. They fail to realise that they are dealing with complex systems, or if they do realise it, they mistake cause-and-effect relationships. They are incapable of thinking in terms of second and subsequent steps. And, more fundamentally, they are generally unaware of the need to think in terms of second steps. Second-order thinkers, on the other hand, think in terms of interactions, time, and system dynamics. They are aware of iatrogenics (when a treatment causes more harm than benefit) and our bias toward intervention. First-level thinkers all look alike. They think the same way other first-level thinkers do, and they usually reach the same conclusions. This is where things get interesting. Extraordinary performance comes from being different. It must be that way. Of course, below average performance comes from being different, too - on the downside. But the road to out-thinking people can't come from first-order thinking. It must come from second-order thinking. So next time you need to think about something, do one of two things: First, start digging below the surface of people's opinions and ask them why they think what they think. And second, ask them to take the other side of the argument. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Opinion: Donald Trump and the second order thinking

Europe and China must unite against protectionism, said Chinese Ambassador&nbsp;Liu Xiaoming to Britain on Thursday.

In an article published by the "Financial Times", Liu said Europe and China should stand together against protectionism, stressing that recent measures by the United States risk triggering a trade war and hampering global growth.

He also pointed out that the world is at a crossroad between cooperation and confrontation at a critical time when the international community should be upholding the global trading system.

Throughout the history of international trade, protectionism has been a spectre stalking the world, Liu remarked.

China has been the powerhouse for global growth and the main contributor to an open world economy in recent years, he said.

Liu noted that Britain and Europe have been advocates of trade liberalization and firm supporters of the multilateral trade system.

The leaders of the UK, France and Germany have expressed their concerns over US protectionism and stressed that the World Trade Organization (WTO) rules should be the basis for solving trade disputes, he said, and this clearly points to shared interests for China and Europe in safeguarding the multilateral trade regime.

Quoting a saying in Europe that "a single tree cannot block the chilly wind", the ambassador stressed that only if the UK, Europe and China stand shoulder to shoulder, will they be able to uphold openness and cooperation and safeguard the international trade regime from the dangers of protectionism.

The article was published in the hard copy, online version and the Chinese online version of the "Financial Times", one of the mainstream media in the world. 
&nbsp;

In an article published by the 'Financial Times,' Liu stressed that recent measures by the United States risk triggering a trade war and hampering global growth

Europe and China must unite against protectionism, said Chinese Ambassador Liu Xiaoming to Britain on Thursday. In an article published by the "Financial Times", Liu said Europe and China should stand together against protectionism, stressing that recent measures by the United States risk triggering a trade war and hampering global growth. He also pointed out that the world is at a crossroad between cooperation and confrontation at a critical time when the international community should be upholding the global trading system. Throughout the history of international trade, protectionism has been a spectre stalking the world, Liu remarked. China has been the powerhouse for global growth and the main contributor to an open world economy in recent years, he said. Liu noted that Britain and Europe have been advocates of trade liberalization and firm supporters of the multilateral trade system. The leaders of the UK, France and Germany have expressed their concerns over US protectionism and stressed that the World Trade Organization (WTO) rules should be the basis for solving trade disputes, he said, and this clearly points to shared interests for China and Europe in safeguarding the multilateral trade regime. Quoting a saying in Europe that "a single tree cannot block the chilly wind", the ambassador stressed that only if the UK, Europe and China stand shoulder to shoulder, will they be able to uphold openness and cooperation and safeguard the international trade regime from the dangers of protectionism. The article was published in the hard copy, online version and the Chinese online version of the "Financial Times", one of the mainstream media in the world.

Europe, China must unite against protectionism: Chinese ambassador to Britain

Prime Minister Narendra Modi on Tuesday cautioned the world against growing protectionism and rise in tariff and non-tariff barriers that are impeding global trade, while pitching for India as a global destination for investment.

The prime minister, however, said that climate change, terrorism and self centrism are the biggest challenges faced by the world.&nbsp;

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Terrorism is a big threat but an even bigger threat is when you give definitions like good terrorism and bad terrorism: PM Modi at <a href="https://twitter.com/hashtag/WorldEconomicForum?src=hash&amp;ref_src=twsrc%5Etfw">#WorldEconomicForum</a> in <a href="https://twitter.com/hashtag/Davos?src=hash&amp;ref_src=twsrc%5Etfw">#Davos</a> <a href="https://t.co/xvDRiN3JN3">pic.twitter.com/xvDRiN3JN3</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/955755669017133056?ref_src=twsrc%5Etfw">January 23, 2018</a></blockquote>
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While addressing the plenary session of the World Economic Forum, PM Modi said there was a need for reform of the international institutions for economic and political security in keeping with the ground realities.

Modi emphasised on the reforms, including GST and demonetisation, &nbsp;brought by his government in the last three years saying his government had replaced red tape with red carpet.&nbsp;

&quot;Today investing in India, travel to India, work in India, manufacture in India, production and exports from India to the rest of the world is easier than before as we have decided to eliminate the `licence-permit raj` and finish the red tape.&quot;&nbsp;

The Prime Minister that said in the last three and a half years, his government has abolished 1,400 outdated laws.

He said the decision has now made foreign direct investment in the country possible in more than 90 per cent of the sectors through the automatic route.&nbsp;

Modi is the first Prime Minister from India to participate in a forum meeting in two decades after H.D. Deve Gowda in 1997.

This is Modi`s second visit to Switzerland in nearly two years. He will interact with 120 members of the International Business Council, which is a part of the WEF.

Modi, in the course of his 24-hour visit to Davos, is also scheduled to hold a meeting with Sweden Prime Minister Stefan Lofven.

PM Modi pitched for India as a global destination for investment.

Prime Minister Narendra Modi on Tuesday cautioned the world against growing protectionism and rise in tariff and non-tariff barriers that are impeding global trade, while pitching for India as a global destination for investment. The prime minister, however, said that climate change, terrorism and self centrism are the biggest challenges faced by the world. Terrorism is a big threat but an even bigger threat is when you give definitions like good terrorism and bad terrorism: PM Modi at #WorldEconomicForum in #Davos pic.twitter.com/xvDRiN3JN3 — ANI (@ANI) January 23, 2018 × While addressing the plenary session of the World Economic Forum, PM Modi said there was a need for reform of the international institutions for economic and political security in keeping with the ground realities. Modi emphasised on the reforms, including GST and demonetisation, brought by his government in the last three years saying his government had replaced red tape with red carpet. "Today investing in India, travel to India, work in India, manufacture in India, production and exports from India to the rest of the world is easier than before as we have decided to eliminate the `licence-permit raj` and finish the red tape." The Prime Minister that said in the last three and a half years, his government has abolished 1,400 outdated laws. He said the decision has now made foreign direct investment in the country possible in more than 90 per cent of the sectors through the automatic route. Modi is the first Prime Minister from India to participate in a forum meeting in two decades after H.D. Deve Gowda in 1997. This is Modi`s second visit to Switzerland in nearly two years. He will interact with 120 members of the International Business Council, which is a part of the WEF. Modi, in the course of his 24-hour visit to Davos, is also scheduled to hold a meeting with Sweden Prime Minister Stefan Lofven.

Rise in tariff, non-tariff barriers impeding global trade: PM Modi

The International Monetary Fund said Asia&#39;s economic outlook faces &quot;significant&quot; uncertainty and downside growth risks from any sudden tightening in global financial conditions or rise in protectionist trade policies.

The IMF, which in April raised its 2017 Asia-Pacific growth forecast to 5.5 per cent from its previous October forecast of 5.4 per cent, said loose monetary and fiscal policies across most of the region would underpin domestic demand.

&quot;However, the near-term outlook is clouded with significant uncertainty, and risks, on balance, remain slanted to the downside,&quot; the IMF said in its Asia-Pacific regional economic outlook released on Tuesday.

In April, the IMF kept the region&#39;s 2018 growth forecast unchanged at 5.4 per cent. Asia-Pacific recorded 5.3 per cent growth in 2016.

The report comes at a time when policymakers around the region are wrestling with the challenge of how to navigate rising risks of protectionism under U.S. President Donald Trump, and a potential increase in funding costs as the Federal Reserve steps up the pace of rate hikes.

Continued tightening of global financial conditions could trigger volatility in capital flows, and the region could see large spillovers if China&#39;s shift to a more consumption-driven economy proves bumpier than expected, the IMF said.

&quot;A possible shift towards protectionism in major trading partners also represents a substantial risk to the region. Asia is particularly vulnerable to a decline in global trade because the region has a high trade openness ratio, with significant participation in global supply chains,&quot; it said.

The IMF said exchange rate flexibility should remain the &quot;main shock absorber&quot; against a sudden tightening in global financial conditions or shift toward protectionism.

It added, however, that &quot;judicious&quot; foreign exchange intervention might be called for in certain cases, such as when disorderly market conditions or rapid exchange rate movements threaten financial or corporate stability.

The IMF emphasised that foreign exchange intervention should not be used to resist currency moves that reflect changes in fundamentals including in the global trade environment or as a substitute for macroeconomic policy adjustments.

Ageing demographics and a slowdown in productivity growth since the global financial crisis pose medium-term headwinds to the region&#39;s economic growth, the IMF said, adding that parts of Asia risk &quot;becoming old before becoming rich&quot;.

&quot;Adapting to aging could be especially challenging for Asia, as populations living at relatively low per capita income levels in many parts of the region are rapidly becoming old,&quot; it said.

The IMF said monetary policy should generally remain accommodative in the region since inflation is below target and there is slack in most Asian economies.

If growth weakens further, some regional central banks such as those in Malaysia and Thailand, may have room to cut interest rates as long as external stability is not compromised, while others in India, Indonesia, and Vietnam should be ready to raise interest rates if inflationary pressures strengthen, the IMF said.

(Reuters)

The IMF, which in April raised its 2017 Asia-Pacific growth forecast to 5.5 per cent from its previous October forecast of 5.4 per cent, said loose monetary and fiscal policies across most of the region would underpin domestic demand

The International Monetary Fund said Asia's economic outlook faces "significant" uncertainty and downside growth risks from any sudden tightening in global financial conditions or rise in protectionist trade policies. The IMF, which in April raised its 2017 Asia-Pacific growth forecast to 5.5 per cent from its previous October forecast of 5.4 per cent, said loose monetary and fiscal policies across most of the region would underpin domestic demand. "However, the near-term outlook is clouded with significant uncertainty, and risks, on balance, remain slanted to the downside," the IMF said in its Asia-Pacific regional economic outlook released on Tuesday. In April, the IMF kept the region's 2018 growth forecast unchanged at 5.4 per cent. Asia-Pacific recorded 5.3 per cent growth in 2016. The report comes at a time when policymakers around the region are wrestling with the challenge of how to navigate rising risks of protectionism under U.S. President Donald Trump, and a potential increase in funding costs as the Federal Reserve steps up the pace of rate hikes. Continued tightening of global financial conditions could trigger volatility in capital flows, and the region could see large spillovers if China's shift to a more consumption-driven economy proves bumpier than expected, the IMF said. "A possible shift towards protectionism in major trading partners also represents a substantial risk to the region. Asia is particularly vulnerable to a decline in global trade because the region has a high trade openness ratio, with significant participation in global supply chains," it said. The IMF said exchange rate flexibility should remain the "main shock absorber" against a sudden tightening in global financial conditions or shift toward protectionism. It added, however, that "judicious" foreign exchange intervention might be called for in certain cases, such as when disorderly market conditions or rapid exchange rate movements threaten financial or corporate stability. The IMF emphasised that foreign exchange intervention should not be used to resist currency moves that reflect changes in fundamentals including in the global trade environment or as a substitute for macroeconomic policy adjustments. Ageing demographics and a slowdown in productivity growth since the global financial crisis pose medium-term headwinds to the region's economic growth, the IMF said, adding that parts of Asia risk "becoming old before becoming rich". "Adapting to aging could be especially challenging for Asia, as populations living at relatively low per capita income levels in many parts of the region are rapidly becoming old," it said. The IMF said monetary policy should generally remain accommodative in the region since inflation is below target and there is slack in most Asian economies. If growth weakens further, some regional central banks such as those in Malaysia and Thailand, may have room to cut interest rates as long as external stability is not compromised, while others in India, Indonesia, and Vietnam should be ready to raise interest rates if inflationary pressures strengthen, the IMF said. (Reuters)

IMF says Asia's economy facing 'significant' growth risks from rise in protectionism

Financial leaders of the world&#39;s biggest economies dropped a pledge to keep global trade free and open, acquiescing to an increasingly protectionist United States after a two-day meeting failed to yield a compromise.

Breaking a decade-long tradition of endorsing open trade, G20 finance ministers and central bankers made only a token reference to trade in their communique on Saturday, a clear defeat for host nation Germany, which fought the new US government&#39;s attempts to water down past commitments.

In the new US administration&#39;s biggest clash yet with the international community, G20 finance chiefs also removed from their statement a pledge to finance the fight against climate change, an anticipated outcome after US President Donald Trump called global warming a &quot;hoax&quot;.

In a meeting that some said was at times 19 against one, the US&nbsp;did not yield on key issues, essentially torpedoing earlier agreements as the G20 requires a consensus. Still, the dialogue was friendly and non-confrontational, leaving the door open to a future deal, officials who attended the meeting said.

&quot;This is my first G20, so what was in the past communiqu&eacute; is not necessarily relevant from my standpoint,&quot; US Treasury Secretary Steven Mnuchin said in the German resort town of Baden Baden.

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<h5>We believe in free trade, we are in one of the largest markets in the world, we are one of the largest trading partners in the world, trade has been good for us, it has been good for other people,&quot; US treasury secretary Steven Mnuchin said. &#39;Having said that, we want to re-examine certain agreements&#39;</h5>
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&quot;I understand what the president&#39;s desire is and his policies, and I negotiated them from here,&quot; Mnuchin said. &quot;I couldn&rsquo;t be happier with the outcome.&quot;

Seeking to put &quot;America first&quot;, Trump has already pulled out of a key trade agreement and proposed a new tax on imports, arguing that certain trade relationships need to be reworked to make them fairer for US workers.

&quot;We believe in free trade, we are in one of the largest markets in the world, we are one of the largest trading partners in the world, trade has been good for us, it has been good for other people,&quot; Mnuchin said. &quot;Having said that, we want to re-examine certain agreements.&quot;

International trade makes up almost half of global economic output and officials said the issue could be revisited at a meeting of G20 leaders in July.

While some expressed frustration, like French Finance Minister Michel Sapin, others played down the dispute.

&quot;It is not that we were not united,&quot; German finance minister Wolfgang Schaeuble said. &quot;It was totally undisputed that we are against protectionism. But it is not very clear what (protectionism) means to each (minister).&quot;

He added that some ministers did not have a full mandate to negotiate since they were not fully in charge of trade issues.

Others suggested that the G20 leaders&#39; meeting in Hamburg this July could be the real opportunity to bring the US on board.

&quot;It is not the best meeting we had, but we avoided backtracking,&quot; EU Economic Affairs Commissioner Pierre Moscovici said. &quot;I hope in Hamburg the wording will be different. We need it. It is the raison d&rsquo;etre for the G20,&quot; Moscovici said.

Climate Pledge Dropped

The communique also dropped a reference, used by the G20 last year, on the readiness to finance measures against climate change as agreed in Paris in 2015, because of opposition from the United States and Saudi Arabia.

Trump has suggested global warming was a &quot;hoax&quot; concocted by China to hurt US industry and vowed to scrap the Paris climate accord aimed at curbing greenhouse gas emissions.

Trump&#39;s administration on Thursday proposed a 31 per cent cut to the Environmental Protection Agency&#39;s budget as the White House seeks to eliminate climate change programmes and trim initiatives to protect air and water quality.

Asked about climate change funding, Mick Mulvaney, Trump&#39;s budget director, said on Thursday: &quot;We consider that to be a waste of money.&quot;

The G20 did, however, show continuity in its foreign exchange policies, using past phrases on currency markets.

&quot;We reaffirm our previous exchange rate commitments, including that we will refrain from competitive devaluations and we will not target our exchange rates for competitive purposes,&quot; the G20 said.

Leaders also upheld their commitments to financial sector regulation, supporting the finalisation of bank rules known as Basel III, provided they do not significantly raise overall capital requirements.

(Reuters)

Their statement -- they were meeting in Germany -- also dropped the pledge to finance the fight against global warming

Financial leaders of the world's biggest economies dropped a pledge to keep global trade free and open, acquiescing to an increasingly protectionist United States after a two-day meeting failed to yield a compromise. Breaking a decade-long tradition of endorsing open trade, G20 finance ministers and central bankers made only a token reference to trade in their communique on Saturday, a clear defeat for host nation Germany, which fought the new US government's attempts to water down past commitments. In the new US administration's biggest clash yet with the international community, G20 finance chiefs also removed from their statement a pledge to finance the fight against climate change, an anticipated outcome after US President Donald Trump called global warming a "hoax". In a meeting that some said was at times 19 against one, the US did not yield on key issues, essentially torpedoing earlier agreements as the G20 requires a consensus. Still, the dialogue was friendly and non-confrontational, leaving the door open to a future deal, officials who attended the meeting said. "This is my first G20, so what was in the past communiqué is not necessarily relevant from my standpoint," US Treasury Secretary Steven Mnuchin said in the German resort town of Baden Baden. We believe in free trade, we are in one of the largest markets in the world, we are one of the largest trading partners in the world, trade has been good for us, it has been good for other people," US treasury secretary Steven Mnuchin said. 'Having said that, we want to re-examine certain agreements' × "I understand what the president's desire is and his policies, and I negotiated them from here," Mnuchin said. "I couldn’t be happier with the outcome." Seeking to put "America first", Trump has already pulled out of a key trade agreement and proposed a new tax on imports, arguing that certain trade relationships need to be reworked to make them fairer for US workers. "We believe in free trade, we are in one of the largest markets in the world, we are one of the largest trading partners in the world, trade has been good for us, it has been good for other people," Mnuchin said. "Having said that, we want to re-examine certain agreements." International trade makes up almost half of global economic output and officials said the issue could be revisited at a meeting of G20 leaders in July. While some expressed frustration, like French Finance Minister Michel Sapin, others played down the dispute. "It is not that we were not united," German finance minister Wolfgang Schaeuble said. "It was totally undisputed that we are against protectionism. But it is not very clear what (protectionism) means to each (minister)." He added that some ministers did not have a full mandate to negotiate since they were not fully in charge of trade issues. Others suggested that the G20 leaders' meeting in Hamburg this July could be the real opportunity to bring the US on board. "It is not the best meeting we had, but we avoided backtracking," EU Economic Affairs Commissioner Pierre Moscovici said. "I hope in Hamburg the wording will be different. We need it. It is the raison d’etre for the G20," Moscovici said. Climate Pledge Dropped The communique also dropped a reference, used by the G20 last year, on the readiness to finance measures against climate change as agreed in Paris in 2015, because of opposition from the United States and Saudi Arabia. Trump has suggested global warming was a "hoax" concocted by China to hurt US industry and vowed to scrap the Paris climate accord aimed at curbing greenhouse gas emissions. Trump's administration on Thursday proposed a 31 per cent cut to the Environmental Protection Agency's budget as the White House seeks to eliminate climate change programmes and trim initiatives to protect air and water quality. Asked about climate change funding, Mick Mulvaney, Trump's budget director, said on Thursday: "We consider that to be a waste of money." The G20 did, however, show continuity in its foreign exchange policies, using past phrases on currency markets. "We reaffirm our previous exchange rate commitments, including that we will refrain from competitive devaluations and we will not target our exchange rates for competitive purposes," the G20 said. Leaders also upheld their commitments to financial sector regulation, supporting the finalisation of bank rules known as Basel III, provided they do not significantly raise overall capital requirements. (Reuters)

Under US pressure, G20 finance leaders drop pledge to keep trade free & open

Already battling headwinds of a slowing growth, the $150-billion Indian IT industry is staring at arguably its biggest uncertainty in recent times after Donald Trump was elected as President of the US, which accounts for around 60 per cent of its export earnings.

While artificial intelligence, digital and automation are the buzzwords this year, worrylines have started to emerge on &quot;creeping&quot; protectionism and negative sentiment in key markets.

IT companies, however, can take comfort from the fact that global technology spend is expected to grow 3 per cent in 2017 after sliding 0.3 per cent in 2016 and long-term targets of the industry of grossing $225 billion by 2020 and $350 billion by 2025 remain intact, at least for now.

&quot;For 2017, the big concern areas include protectionism and anti-globalisation creeping into markets like the US, the UK and the rest of Europe, Singapore and Australia. Second, the need to update skill base we have in India and rising need for digital and consulting skills, and third, the policy initiatives like GST which can impact the industry,&quot; said R Chandrashekhar, President of software association Nasscom.

Trump, who is due to take over as the 45th US President next month, is known for his hardline stance on protectionism and anti-immigration.

While the industry has tried putting on a brave front, there are underlying concerns about tightening of visa norms that will push up the cost of doing business.

Flagging the issue of protectionism and negative sentiment around skilled worker movement in the US, Chandrashekhar argues that corporate America also needs technology services, given the shortage of science, technology, engineering and mathematics (STEM) skills.

&quot;The issue is as much about what is good for the US economy. The fact is that according to US&#39; own statistics, over one million IT-related jobs will remain unfilled in 2018... So, reality has to be kept in mind before steps are taken,&quot; he said.

Indian players like TCS and Infosys are heavily dependent on the US market.

The other big market -- the UK -- also did not bring much good news for the sector this year, with the country announcing its separation from the EU.

While companies as well as industry body Nasscom said there may be short-term impact on contracts, Britain exiting from the UK holds opportunities for India over a longer term.

The IT industry, which has been a poster boy for Indian exports sector, has been battling factors like fluctuating currency and rising visa costs over the past many years.

In March this year, India filed a complaint in the World Trade Organisation (WTO) against the US decision to impose high fees on temporary working visas, a move that makes Indian IT companies less competitive in that market.&nbsp;

(PTI)

There are underlying concerns within the industry about tightening of visa norms as it will push up the cost of doing business

Already battling headwinds of a slowing growth, the $150-billion Indian IT industry is staring at arguably its biggest uncertainty in recent times after Donald Trump was elected as President of the US, which accounts for around 60 per cent of its export earnings. While artificial intelligence, digital and automation are the buzzwords this year, worrylines have started to emerge on "creeping" protectionism and negative sentiment in key markets. IT companies, however, can take comfort from the fact that global technology spend is expected to grow 3 per cent in 2017 after sliding 0.3 per cent in 2016 and long-term targets of the industry of grossing $225 billion by 2020 and $350 billion by 2025 remain intact, at least for now. "For 2017, the big concern areas include protectionism and anti-globalisation creeping into markets like the US, the UK and the rest of Europe, Singapore and Australia. Second, the need to update skill base we have in India and rising need for digital and consulting skills, and third, the policy initiatives like GST which can impact the industry," said R Chandrashekhar, President of software association Nasscom. Trump, who is due to take over as the 45th US President next month, is known for his hardline stance on protectionism and anti-immigration. While the industry has tried putting on a brave front, there are underlying concerns about tightening of visa norms that will push up the cost of doing business. Flagging the issue of protectionism and negative sentiment around skilled worker movement in the US, Chandrashekhar argues that corporate America also needs technology services, given the shortage of science, technology, engineering and mathematics (STEM) skills. "The issue is as much about what is good for the US economy. The fact is that according to US' own statistics, over one million IT-related jobs will remain unfilled in 2018... So, reality has to be kept in mind before steps are taken," he said. Indian players like TCS and Infosys are heavily dependent on the US market. The other big market -- the UK -- also did not bring much good news for the sector this year, with the country announcing its separation from the EU. While companies as well as industry body Nasscom said there may be short-term impact on contracts, Britain exiting from the UK holds opportunities for India over a longer term. The IT industry, which has been a poster boy for Indian exports sector, has been battling factors like fluctuating currency and rising visa costs over the past many years. In March this year, India filed a complaint in the World Trade Organisation (WTO) against the US decision to impose high fees on temporary working visas, a move that makes Indian IT companies less competitive in that market. (PTI)

Trump, protectionism major worry lines for India's IT sector in 2017

The world`s top 20 economies will work to boost sluggish global trade despite growing protectionism, overcapacity concerns, and uncertainty over Brexit, G20 trade ministers said today at a meeting in Shanghai. 
 
&quot;The global recovery continues, but it remains uneven and falls short of our ambition for strong, sustainable and balanced growth. Downside risks and vulnerabilities persist,&quot; the trade ministers said in a joint statement, adding that trade should remain &quot;an important engine&quot; to spur global growth. 
 
Protectionism has been rising, G20 nations acknowledge&nbsp; 
 
The G20 nations, which account for 85 per cent of global trade, admitted that protectionism has been rising since the financial crisis, and said that new trade restrictions in the group had reached the highest monthly average registered since the&nbsp;World Trade Organisation (WTO) began monitoring in 2009. 
 
&quot;We note with concern that despite the G20&#39;s repeated pledge, the stock of restrictive measure affecting trade in goods and services has continued to rise,&quot; they said in the statement. 
 
Ahead of the meeting, WTO chief economist Robert Koopman warned that restrictive measures could affect industries including air freight cargo, sea based cargo, automobile sales and production, electronics trade, and agricultural raw materials. 
 
The world&#39;s leading economies over the weekend pledged to oppose trade protectionism and reiterated a promise not to add new protective measures until 2018. 
 
Global trade governance to be improve to combat slowdown 
 
Pertinent to mention that global trade is expected to grow at a tepid 2.8 per cent in 2016, the WTO had said in April. 
 
And this year is expected to be the fifth in a row where trade grew at less than three per cent, its weakest sustained level in 30 years, WTO Director-General Roberto Azevedo said on Friday ahead of the talks. 
 
To combat the global slowdown, the ministers said they agreed to improve global trade governance and to work towards easing and liberalising trade.Concerns over China&#39;s production overcapacity in steel have led to trade disputes with the EU and US, and China`s vice commerce minister Wang Shouwen said today that the G20 economies &quot;have realised the necessity to take global cooperation to handle the challenge caused by production overcapacity&quot;. 
 
But despite claims that China is dumping steel in foreign markets, he said &quot;China&#39;s effort in (handling) over capacity has been highly recognised&quot; by the group. 
 
&quot;While some other countries are talking about how to cut down production, Chinese government has already taken measures which have been effective.&quot; 
 
Meanwhile Britain&#39;s referendum vote to leave the European Union (EU) has added new concerns for the recovery of global economic and trade growth. 
 
&quot;Britain leaving the European Union will definitely have some impact on global trade, especially short-term investment,&quot; China&#39;s Wang commented today. 
 
Britain&#39;s trade minister Mark Price told the Financial Times in Beijing ahead of the weekend talk that tariffs would jump to an average level of at least three per cent after its exit from the EU. 
 
He said it&#39;s time to &quot;start exploring options&quot; on trade agreements and &quot;China is making very positive noises at the moment&quot;, the report said. 
 
(AFP)

Britain's referendum vote to leave the European Union has added new concerns for the recovery of global economic and trade growth

The world`s top 20 economies will work to boost sluggish global trade despite growing protectionism, overcapacity concerns, and uncertainty over Brexit, G20 trade ministers said today at a meeting in Shanghai. "The global recovery continues, but it remains uneven and falls short of our ambition for strong, sustainable and balanced growth. Downside risks and vulnerabilities persist," the trade ministers said in a joint statement, adding that trade should remain "an important engine" to spur global growth. Protectionism has been rising, G20 nations acknowledge The G20 nations, which account for 85 per cent of global trade, admitted that protectionism has been rising since the financial crisis, and said that new trade restrictions in the group had reached the highest monthly average registered since the World Trade Organisation (WTO) began monitoring in 2009. "We note with concern that despite the G20's repeated pledge, the stock of restrictive measure affecting trade in goods and services has continued to rise," they said in the statement. Ahead of the meeting, WTO chief economist Robert Koopman warned that restrictive measures could affect industries including air freight cargo, sea based cargo, automobile sales and production, electronics trade, and agricultural raw materials. The world's leading economies over the weekend pledged to oppose trade protectionism and reiterated a promise not to add new protective measures until 2018. Global trade governance to be improve to combat slowdown Pertinent to mention that global trade is expected to grow at a tepid 2.8 per cent in 2016, the WTO had said in April. And this year is expected to be the fifth in a row where trade grew at less than three per cent, its weakest sustained level in 30 years, WTO Director-General Roberto Azevedo said on Friday ahead of the talks. To combat the global slowdown, the ministers said they agreed to improve global trade governance and to work towards easing and liberalising trade.Concerns over China's production overcapacity in steel have led to trade disputes with the EU and US, and China`s vice commerce minister Wang Shouwen said today that the G20 economies "have realised the necessity to take global cooperation to handle the challenge caused by production overcapacity". But despite claims that China is dumping steel in foreign markets, he said "China's effort in (handling) over capacity has been highly recognised" by the group. "While some other countries are talking about how to cut down production, Chinese government has already taken measures which have been effective." Meanwhile Britain's referendum vote to leave the European Union (EU) has added new concerns for the recovery of global economic and trade growth. "Britain leaving the European Union will definitely have some impact on global trade, especially short-term investment," China's Wang commented today. Britain's trade minister Mark Price told the Financial Times in Beijing ahead of the weekend talk that tariffs would jump to an average level of at least three per cent after its exit from the EU. He said it's time to "start exploring options" on trade agreements and "China is making very positive noises at the moment", the report said. (AFP)

G20 nations pledge to boost sluggish global trade

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