ID :
149618
Fri, 11/12/2010 - 08:26
Auther :
Shortlink :
https://www.oananews.org//node/149618
The shortlink copeid
G-20 eyes global imbalances, Kan vows to fight protectionism+
SEOUL, Nov. 12 Kyodo -
Group of 20 leaders kicked off a two-day summit Thursday in Seoul where they
were discussing ways to address imbalances in the world economy in an effort to
ensure sustainable global growth and stability in currency movements.
Speaking at a meeting between political and business leaders ahead of the
summit, Japanese Prime Minister Naoto Kan said the G-20 ''should show specific
action as a group to curb protectionism,'' alluding to concerns about China's
de facto export control of rare earth minerals, according to the Japanese
Foreign Ministry.
Kan urged the 20 major developed and emerging economies to fulfill their
responsibility, in line with each member's influence in the world economy, to
conclude the stalled Doha round of global trade liberalization negotiations,
the ministry said.
Kan was also quoted as saying that as chairman of the upcoming summit in
Yokohama of the Asia-Pacific Economic Cooperation forum, he will try to hammer
out an ''unequivocal support to the multilateral trade system and a curb on
protectionism to make the Asia-Pacific a freer and more open region.''
At the Seoul summit, the G-20 leaders are expected to agree to introduce
so-called ''indicative guidelines'' to unwind the global imbalances, but are
unlikely to adopt a numerical target as a means of curbing current account
surpluses and deficits held by each economy, delegates said.
Japanese Finance Minister Yoshihiko Noda told reporters after the working
dinner of G-20 finance ministers, ''There was no discussion about a number.''
China, Germany, Japan and other countries with large current account surpluses
have dismissed or shown reluctance to a U.S. proposal that the level of current
account surpluses and deficits be limited to 4 percent of gross domestic
product by 2015.
Along with the global imbalances and currency, the leaders will also discuss
reforms of the International Monetary Fund, stricter regulations for the
financial sector, development, and global trade and climate change issues, the
delegates said.
Also drawing attention is whether Kan will have unscheduled talks with Chinese
President Hu Jintao during the event as bilateral relations remain tense over
boat collisions near the Japan-administered Senkaku Islands in the East China
Sea.
Some G-20 members are likely to criticize the United States for announcing an
additional credit-easing measure last week, which critics say would increase
capital flows into higher-yield emerging economies, potentially incurring
inflationary pressure and creating asset-inflated bubbles there, an act they
say goes against the U.S. role as a responsible player in the global economy.
Washington has also been accused of diluting a recent agreement by G-20 finance
ministers to abstain from competitive currency devaluation, because the U.S.
Federal Reserve's $600 billion government bond purchase scheme, originally
meant to shore up the U.S. economy, weakens the dollar.
''Because of the present opposition, leaders from the 20 largest economies may
agree on a compromise that calls for a resolution to the standoff before the
next G-20 meeting takes place (in France),'' an unidentified source was quoted
as saying Thursday by Yonhap News Agency.
The source said that before a viable solution is reached next year, countries
could be asked to announce a detailed action plan with the IMF to review
feasibility and set up an ''early warning system'' to check for excessive
imbalances.
The global imbalances are most symbolically represented by the huge U.S. trade
and current account deficits versus China's large surplus and dollar reserves.
Washington has been urging Beijing to raise the value of the yuan to help
address such imbalances.
The G-20 leaders are expected to call for ensuring ''market determined exchange
rate systems that reflect underlying economic fundamentals,'' a tacit call on
China to let the yuan appreciate, and abstain from ''competitive devaluation of
currencies,'' a deal agreed on by G-20 finance ministers in October.
The United States has expressed dissatisfaction that the yuan, also known as
the renminbi, has risen only marginally despite China's currency reform
announcement in June.
But China says it does not think the yuan is undervalued and that it will
reject attempts by other countries to set targets for yuan appreciation.
Among other issues, the G-20 leaders are set to welcome a decision by the IMF
Executive Board to transfer more than 6 percent of voting power to
under-represented emerging nations from developed countries, a symbolic move to
reform the structure and governance of the Washington-based institution.
Under the plan, China's voting share will be lifted to third from sixth, after
the United States and Japan, exceeding that of some key European countries such
as Germany and France.
The G-20 groups Argentina, Australia, Brazil, Britain, Canada, China, France,
Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South
Africa, South Korea, Turkey, the United States and the European Union.
==Kyodo
Group of 20 leaders kicked off a two-day summit Thursday in Seoul where they
were discussing ways to address imbalances in the world economy in an effort to
ensure sustainable global growth and stability in currency movements.
Speaking at a meeting between political and business leaders ahead of the
summit, Japanese Prime Minister Naoto Kan said the G-20 ''should show specific
action as a group to curb protectionism,'' alluding to concerns about China's
de facto export control of rare earth minerals, according to the Japanese
Foreign Ministry.
Kan urged the 20 major developed and emerging economies to fulfill their
responsibility, in line with each member's influence in the world economy, to
conclude the stalled Doha round of global trade liberalization negotiations,
the ministry said.
Kan was also quoted as saying that as chairman of the upcoming summit in
Yokohama of the Asia-Pacific Economic Cooperation forum, he will try to hammer
out an ''unequivocal support to the multilateral trade system and a curb on
protectionism to make the Asia-Pacific a freer and more open region.''
At the Seoul summit, the G-20 leaders are expected to agree to introduce
so-called ''indicative guidelines'' to unwind the global imbalances, but are
unlikely to adopt a numerical target as a means of curbing current account
surpluses and deficits held by each economy, delegates said.
Japanese Finance Minister Yoshihiko Noda told reporters after the working
dinner of G-20 finance ministers, ''There was no discussion about a number.''
China, Germany, Japan and other countries with large current account surpluses
have dismissed or shown reluctance to a U.S. proposal that the level of current
account surpluses and deficits be limited to 4 percent of gross domestic
product by 2015.
Along with the global imbalances and currency, the leaders will also discuss
reforms of the International Monetary Fund, stricter regulations for the
financial sector, development, and global trade and climate change issues, the
delegates said.
Also drawing attention is whether Kan will have unscheduled talks with Chinese
President Hu Jintao during the event as bilateral relations remain tense over
boat collisions near the Japan-administered Senkaku Islands in the East China
Sea.
Some G-20 members are likely to criticize the United States for announcing an
additional credit-easing measure last week, which critics say would increase
capital flows into higher-yield emerging economies, potentially incurring
inflationary pressure and creating asset-inflated bubbles there, an act they
say goes against the U.S. role as a responsible player in the global economy.
Washington has also been accused of diluting a recent agreement by G-20 finance
ministers to abstain from competitive currency devaluation, because the U.S.
Federal Reserve's $600 billion government bond purchase scheme, originally
meant to shore up the U.S. economy, weakens the dollar.
''Because of the present opposition, leaders from the 20 largest economies may
agree on a compromise that calls for a resolution to the standoff before the
next G-20 meeting takes place (in France),'' an unidentified source was quoted
as saying Thursday by Yonhap News Agency.
The source said that before a viable solution is reached next year, countries
could be asked to announce a detailed action plan with the IMF to review
feasibility and set up an ''early warning system'' to check for excessive
imbalances.
The global imbalances are most symbolically represented by the huge U.S. trade
and current account deficits versus China's large surplus and dollar reserves.
Washington has been urging Beijing to raise the value of the yuan to help
address such imbalances.
The G-20 leaders are expected to call for ensuring ''market determined exchange
rate systems that reflect underlying economic fundamentals,'' a tacit call on
China to let the yuan appreciate, and abstain from ''competitive devaluation of
currencies,'' a deal agreed on by G-20 finance ministers in October.
The United States has expressed dissatisfaction that the yuan, also known as
the renminbi, has risen only marginally despite China's currency reform
announcement in June.
But China says it does not think the yuan is undervalued and that it will
reject attempts by other countries to set targets for yuan appreciation.
Among other issues, the G-20 leaders are set to welcome a decision by the IMF
Executive Board to transfer more than 6 percent of voting power to
under-represented emerging nations from developed countries, a symbolic move to
reform the structure and governance of the Washington-based institution.
Under the plan, China's voting share will be lifted to third from sixth, after
the United States and Japan, exceeding that of some key European countries such
as Germany and France.
The G-20 groups Argentina, Australia, Brazil, Britain, Canada, China, France,
Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South
Africa, South Korea, Turkey, the United States and the European Union.
==Kyodo
