IMF and World Bank leaders appeal for an end to trade wars

Financial Counsellor and Director Monetary and Capital Markets Department IMF Mr. Tobias Adrian

Financial Counsellor and Director Monetary and Capital Markets Department IMF Mr. Tobias Adrian

Currently, the global lender has 1 trillion USA dollars in total lending resources, made up of quotas, its main source of financing and based broadly on each member's relative position in the world economy, the New Arrangements to Borrow, a multilateral borrowing mechanism that provides additional lending resources, and the Bilateral Borrowing Agreements, a further boost to IMF's lending capacity after the 2008 financial crisis.

She said more must be done by the world's two biggest economies to resolve their disputes and that all nations must try to overhaul their trade rules. She added that the detente in China-US trade tensions is shrinking the negative impact on global growth, "and you would not be surprised".

The Managing Director of the International Monetary Fund, Ms Kristalina Georgieva, has said that there is a need for the Federal Government to diversify the economy from the oil in order to reduce the level of economic vulnerabilities now facing the country. "Our meetings this week are an opportunity for all parties to make progress in moving from a trade truce to a trade peace".

The World Bank's president, David Malpass, said the slowdown in global growth was hurting efforts to help the 700 million people around the world living in extreme poverty, especially in nations trying to cope with a flood of refugees from regional conflicts.

The fall meetings of the International Monetary Fund and World Bank meetings were expected to be dominated by the trade disputes triggered by the Trump administration's get-tough policies aimed at lowering America's huge trade deficits and boosting USA manufacturing jobs.

Higher U.S. tariffs did go into effect Friday on $7.5 billion in European goods coming into the United States in a dispute involving airplane subsidies. So far those efforts have made little headway.

He said he and U.S. Trade Representative Robert Lighthizer would speak by phone with Chinese Vice Premier Liu He, the head of the Chinese negotiating team, next week and planned to meet with him in Santiago, Chile, before the Asia Pacific Economic Cooperation leaders' summit on November 16-17.

"From the very beginning, we have made it very clear that we want to avoid a trade war", Le Maire said. That process, completed in 2010, needed approval of the U.S. Congress, and it was not closed out till early 2016.

Georgieva said Thursday a tentative U.S. -China trade agreement announced last week should lessen the damage to the global economy slightly, but solid global growth would not return until the two countries resolved their differences and all countries moved to modernize the rules of global trade to lessen future disputes.

"Our hope is to move from a trade truce to a trade peace", she told reporters.

Georgieva said countries must "be willing to expand and improve this (trade) rule book", especially to include services and e-commerce which are not covered by traditional agreements for trade in goods, she said at the close of the International Monetary Fund meetings.

The administration of US President Donald Trump has repeatedly attacked the Geneva-based WTO, saying that it is biased against the US.

"We all know that we have been reaching agreements on trade based primarily on the past, but you can not drive just looking in the rearview mirror".

Georgieva said that commerce has been transformed by advances in technology and they need to be acknowledged in new trade rules.

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