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Steven Mnuchin at G7: 'We don't want to be protectionist'


Canadian Finance Minister William Morneau, right, talks with President of the German Central Bank Jens Weidmann as they exit the Castle of Bari, venue of the G7 of Ministers of finance, in Bari, southern Italy, Friday, May. -Canada trade relationship is to both economies.

"We must not back pedal on free trade as it has contributed to economic prosperity", Mr Aso said.

Aso told reporters that he has come to see that Trump's trade policy - widely viewed as protectionist - is no different from previous administrations in favor of free trade.

"I think that there was no disagreement over the fact that trade promotes growth and has to be inclusive", Italian Finance Minister Pier Carlo Padoan said on Bloomberg Television.

"All the six others. said explicitly, and some very directly, to the representatives of the US administration that it is absolutely necessary to continue with the same spirit of worldwide cooperation", said French Finance Minister Michel Sapin.

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U.S. Treasury Secretary Steven Mnuchin said on Saturday that United States reserves the right to be protectionist on trade, but noted that his worldwide counterparts are growing more comfortable with the Trump administration's economic agenda. A U.S. Treasury spokesman said Mnuchin will brief his counterparts in Bari on the Trump administration's still-emerging plans to revamp the U.S. tax system - with major cuts for businesses - and ease regulatory burdens.Reflecting tensions over Trump's attitude to protectionism, there will be no formal discussion of trade in Bari, Italian Treasury officials said.

The deal would allow USA companies to ship liquefied natural gas to China and tackles a range of long-standing barriers, ending a ban on imports of US beef and moving a step closer to allowing Chinese poultry on American supermarket shelves.

There is also some concern Mr. Trump's tax plan could push the country deeper into debt, raising questions over the administration's argument that cutting corporate tax levels to 15% from their current 35% rate will be financed by revenue generated by a higher pace of economic expansion.

"We want to have balanced trade", Mr Mnuchin said. "We're going to try to get this done as quickly as we can".

Almost a decade after a financial crisis ripped through the global economy, G-7 officials said they are wary of another big threat to growth.

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They also called for a renewed common effort against cybercrime.

Britain, Canada, France, Germany, Italy, Japan and the United States make up the G7.

The group's agreements, presented in the form of a final statement, aren't legally binding; instead they represent the leaders' political commitment to follow through.

That divergence augurs for potential disagreements when the nations' leaders gather in Sicily later this month - an event which marks Trump's first major global summit as U.S. President.

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