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Trade, exchange rate might dominate G20 topics in Germany's Baden-Baden

Xinhua | Updated: 2017-03-17 10:11

BADEN-BADEN - Trade and exchange rate issues might become the focal points for the Group Twenty (G20) gathering in the German spa town of Baden-Baden, where are seeing arrivals of finance ministers and central bankers on Thursday.

Among the treasurers, many worry about a rise of protectionism, as the new US administration of President Donald Trump might practice harsh policies waging a trade war and pressure other countries on their monetary policies.

Some German local media disclosed the draft communique of the summit has been revised several times.

Articles like "rejecting protectionism" and "refraining from competitive currency devaluations" that were included in the past were at one time deleted in the draft. The US is reportedly behind the amendment, according to the German newspaper Handelsblatt.

Fears are high that the final version of the communique may change these crucial words.

Currency topics seem inevitable as Trump's trade policy adviser Peter Navarro once accused Europe, China and Japan of deliberately devaluing their currencies to take advantage over their US competitors.

The controversial allegation was denied by all the mentioned countries, and is expected to generate heated discussion.

On the eve of the summit, German Finance Minister Wolfgang Schaeuble hosted the visiting US Treasury Secretary Steven Mnuchin in Berlin, where Schaeuble said they had laid basis to speak "openly" and "find solutions together."

Mnuchin said that the US believes in free trade, and more importantly "fair trade", adding the US had no intention to start trade wars with other economic powers.

But he disclosed that Germany and the US did not reach agreement on all points.

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