Don't Dismiss Trump's Trade Concerns Outright, Says IMF's Lipton
21 February 2017 - 2:15PM
Dow Jones News
By Andrea Thomas
BERLIN--The Trump administration's criticisms of some countries'
trade policies have a degree of legitimacy and shouldn't all be
dismissed outright, a senior International Monetary Fund official
said Tuesday.
"It's the role of this (U.S.) administration to level the
playing field and to restore some balance on behalf of the American
people," David Lipton, the IMF's second-most senior official, told
a conference in Berlin. "The key is to try to look at what they say
as a diagnosis and to help them sort out what really does make
sense and what doesn't."
He said there were "elements of truth to some of their
complaints, even when they misframe them," and that legitimate
concerns should be addressed.
While it would be wrong to describe China as a currency
manipulator, for example, it would be sensible for the world's
second-largest economy to rely less on exports for growth, Mr.
Lipton said.
He added that a a bilateral approach to resolving imbalances, as
favored by President Donald Trump, mightn't be as successful as the
multilateral approached favored by the IMF. Mr. Lipton said the IMF
was more committed than ever to multilateralism in tackling the
side-effects of globalization.
Mr. Trump was elected in 2016 on an anti-globalization platform.
After taking office in January, he withdrew U.S. support for the
Trans-Pacific Partnership trade agreement and said he would focus
on forging bilateral deals with individual countries. He also
pledged to confront China and renegotiate the two-decade-old North
American Free Trade Agreement, with a view to protecting U.S.
jobs.
Mr. Lipton called on Europe, and Germany in particular, as the
current chair of the Group of 20 large world economies, to help
support an international approach to problem-solving.
Speaking at the same conference, Gesa Miehe-Nordmeyer, a senior
aide to German Chancellor Angela Merkel, said a focus of Berlin's
G-20 presidency would be to make the world economy more resilient
to crises.
--Write to Andrea Thomas at andrea.thomas@wsj.com
(END) Dow Jones Newswires
February 21, 2017 09:00 ET (14:00 GMT)
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