ZCZC
BCN-08
US-CHINA-DIPLOMACY-G20-ECONOMY
Mnuchin calls on China, EU to make tariff concessions
BUENOS AIRES, July 22, 2018 (BSS/AFP) – US Treasury Secretary Steven
Mnuchin said on Saturday he will be pushing China and the EU to agree to a
more “balanced” relationship on trade when he meets with finance ministers at
the Group of 20 convention in Buenos Aires.
Mnuchin arrived in the Argentine capital at the end of a week in which US
President Donald Trump has ramped up his inflammatory remarks and threats
with regard global trade.
Trump described China, the EU and Russia as trade “foes” and threatened to
hammer the entire $500 billion in goods the US imports from China with
punitive tariffs.
“It is definitely a realistic possibility so I wouldn’t minimize the
possibility. We’ve been very clear with our objectives,” Mnuchin told
reporters ahead of the start of the two-day G20 summit amongst finance
ministers and central bankers from the world’s 20 leading economies.
“We share a desire to have a more balanced relationship and the balanced
relationship is by us selling more goods (to China).”
The US trade in goods deficit with China stood at almost $376 billion in
2017.
– ‘Tremendous opportunity’ –
“Although the objective is to cut the trade deficit, the desire to do that
is for them to open up their markets so we can compete fairly and increase
our exports,” he said.
“I think it’s a tremendous opportunity for us and a tremendous opportunity
for China.
“China has a large, growing population that will consume more products and
that likes American products.”
He pointed to energy, agriculture and technology as areas in which the US
could boost its Chinese presence.
But Mnuchin said joint ventures were a major stumbling block between the
two countries, particularly when it comes to technology, stating that other
than in certain “security” related cases, “companies are free to do business
in the US without setting up joint ventures.”
MORE/HR/0928
ZCZC
BCN-09
US-CHINA-DIPLOMACY-G20- ECONOMY 2 LAST BUENOS AIRES
He added: “They’re very interested in technology and we’re pleased for
them to have our technology companies there as long as they do it in a way
that our technology companies don’t in any way feel the pressure to form
joint ventures or transfer technology.
“There’s a very large, growing opportunity, if we can reach agreement,
that is good for China, good for their economy and good for US companies.”
– Message to EU –
As for the EU, Mnuchin said it would have to make considerable concessions
in order for there to be a free-trade agreement between the two.
“My message is pretty clear, it’s the same message the president delivered
at the G7: if Europe believes in free trade, we’re ready to sign a free trade
agreement with no tariffs, no tariff barriers and no subsidies. It has to be
all three.”
The Treasury Secretary also spoke of current and possible future trade
sanctions, mentioning North Korea, Iran, Venezuela and Nicaragua.
Despite Trump’s landmark meeting with North Korean supremo Kim Jong-un in
Singapore last month that saw a significant thawing in previously explosive
ties, a softening of sanctions isn’t on the table.
“We’re pleased with the dialogue but there will not be sanctions relief
until there is real progress,” Mnuchin said.
He acknowledged that the US and EU “don’t see eye to eye on every single
aspect” of the Iran nuclear deal but insisted there’s a “consistent view that
Iran should never have nuclear weapons” and that they should be prevented
from exporting “terrorism” to the Middle East.
He said the repression in crisis hit Venezuela by the government of
President Nicolas Maduro was “unacceptable” and that US sanctions targeting
those in power were to “encourage better behavior.”
Further sanctions could also be heading Nicaragua’s way after three months
of unrest in which more than 280 people have been killed as protests escalate
against the ironfisted rule of President Daniel Ortega.
“It’s a reasonable guess that (sanctions are) something we’d be looking
at,” said Mnuchin.
BSS/AFP/HR/0930