Japan’s FM Aso Cautions the G20 on the Impact of Protectionism in the Market

Japan apprised its G20 equivalent saying that protectionism and interchange of retaliatory measures will interrupt the financial market and increase volatility.

Japan’s Finance Minister Taro Aso said to reporters during the meeting of G20 leaders that this method would not favor any country if basing it on an “inward-looking policies” of protectionism.

At the same time, he said that resolving the global problems should be multilateral instead of a bilateral framework.

Moreover, currency markets are still vulnerable to sudden shocks that could affect emerging market capital flows as various economies of central banks start to back down on their stimulus programs in times of crisis. Yet, the topic on the exchange-rate movements of the G20 was not discussed during the G20 leaders' assembly.

The global trade war is still the primary concern as one of the main topics on the assembly which also IMF warns that it could affect the solid global growth.

Aso also noted that there has been a difference in the approach between the U.S. and Japan regarding trade negotiations following the summit between the leaders of both nations.

Both have agreed to intensify trade agreements and expand the bilateral plans on investment and trades. Trump mentioned his aspiration to solve the trade imbalance with Japan through a bilateral trade deal. On the other hand, Abe reiterated his take regarding the multilateral Trans-Pacific Partnership (TPP) deal with the United States.

On Friday, Japan’s Finance minister Taro Aso and the U.S. Treasury Secretary Steve Mnuchin is scheduled to discuss the bilateral talk other than the G20 and IMF meetings, according to Japan’s Finance Ministry.