IMF drops anti-protectionism pledge amid US pressure

The International Monetary Fund and World Bank have dropped a pledge to fight trade protectionism from the closing note of their spring meetings, under pressure from the US.

"An IMF statement said members would 'work together' to reduce global trade and current account imbalances 'through appropriate policies'," says the BBC.

"Earlier in the week the IMF had warned that protectionist policies could choke off improving global growth."

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up

Seeking to downplay the significance of the decision, Mexican central bank chief Agustin Carstens, who chairs the IMF steering committee, said protectionism was an "ambiguous" term.

"Instead of dwelling on what that concept means, we managed to put it in a more positive, more constructive framework," he said.

As part of his America First policy, Donald Trump wants to cut trade deficits and impose tariffs on nations that have trade surpluses with the US, including China and Germany.

Despite warnings from the IMF that tariffs could choke global growth, US Treasury Secretary Steven Mnuchin said the administration was committed to delivering "reciprocal trade deals and reciprocal free trade".

"What that means is that if our markets are open, there should be a reciprocal nature to other markets which should be open as well," said Mnuchin.

Last month, G20 ministers failed to renew their long-standing pledge to bolster free trade after opposition from the US.