G-20 Summit may witness row between U.S., China over “currency wars”, “trade imbalances”

November 11th, 2010 - 10:26 pm ICT by ANI  

Barack Obama New Delhi, Nov.11 (ANI): As the member countries of the G-20 have arrived in Seoul, there are fears that this fifth edition of the Summit might descend into a row between the US and China about so-called “currency wars” and trade imbalances.

Ahead of the meeting, US President Barack Obama urged leaders to work together for global economic recovery. He also defended the US’s policy of pumping 600bn dollars into the economy.

“In a prudent, stable way, we want to make sure that we are boosting growth rates at home as well as abroad,” Mr Obama said of the policy announced last week designed to kick-start the US economy’s fragile recovery.

“It is difficult to do that if we start seeing the huge imbalances redevelop that helped to contribute to the crisis that we just went through.”

Meanwhile, the US and South Korea also announced that they had failed to seal a free trade deal, in talks ahead of the main G20 meeting.

The pact was agreed three years ago, but has since stalled over US lawmakers concerns about access to South Korean markets for US beef and cars.

“We agreed that more time is needed to resolve detailed issues and asked trade ministers to reach a mutually acceptable deal as soon as possible,” a BBC reported quoted South Korean President Lee Myung-bak as saying after holding a meet with the US President.

He also said the US remained open to negotiations with North Korea to end its nuclear programme as long as Pyongyang showed “seriousness of purpose”.

In a joint news conference with the South Korean president, Mr Obama said the final communique of the G20 summit would include mechanisms to promote balanced and sustainable international economic growth.

He earlier said the US would seek to create jobs and reduce global trade imbalances.

The Washington, said the BBC report, has blamed these in part on Beijing’s alleged manipulation of its currency to help boost Chinese exports, which has led to Beijing amassing huge foreign reserves. (ANI)

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