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G20 financial leaders to focus on trade war impact

G20 meeting

Amid the escalating trade dispute between the United States and China, eyes will focus on the Group of 20 meeting this weekend in Japan's Fukuoka city.

The world's largest economies financial leaders are likely to move away from their promises to avoid protectionism in their statement that will be released on Sunday.

The G20 meeting will discuss the global economy, with more focus on the trade war between US and China and how it is going to affect the global growth.

"As for trade, the language will be reminiscent of previous communiques," a G-20 official who was familiar with the draft joint statement said.   

The US-China trade war extends to other areas of the G20 debate, making the drafting of the final statement more difficult, as the relations between the world's two largest economies have deteriorated in recent months due to the bitter trade war and U.S. sanctions against Huawei Technologies Co LTD.

As G-20 commitment not to use competitive currency cuts to make gains in international trade will remain in effect, although the foreign exchange language has not yet been completed.

Trump will move forward in introducing more tariffs on Chinese imports if no progress is made on the stalled negotiations when he meets his Chines counterpart Xi Jinping later at the end of June, US Treasury Secretary Steven Mnuchin said on Sunday.

It is worth mentioning that the U.S. dollar index closed at the lowest level in two months at 96.53 on Friday after the release of dismal U.S. non-farm payrolls figures. 

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