The G20 is a group of 20 countries who discuss matters and try to come up with fair policies for finance and trade. They hold an annual meeting. This year’s meeting was held in Buenos Aires, Argentina, on November 30 and December 1. President Mauricio Macri of Argentina hosted this summit.
What were the highlights of this year’s summit?
Pause on additions to the trade war:
The USA has put tariffs or duties on $253 billion worth of Chinese goods that are sold in the USA.
China has put tariffs or duties on $130 billion worth of American goods that are sold in China. (Click here for a background on tariffs, what they are, and how they work)
The trade war has been hard for companies doing business in these countries, as this means that US products sold in China are suddenly much more expensive, and Chinese products sold in the US are suddenly much more expensive. This has hurt companies in both countries.
The USA and China were poised to escalate their trade war and to put additional duties on each others’ products. They have agreed to put a 90 day hold on these additional duties. Let’s see if they can work something out!
Climate Change: All members of the G20, except for USA, emphasised that they stand by the Paris Agreement that they had all signed, promising to take measures to reduce global warming. The USA, as you know, withdrew its support of the Paris Agreement under President Donald Trump, who said that this would limit the ability of companies and industries to grow. There is some fear that Brazil’s new leader, President-elect Jair Bolsonaro, will also withdraw his support of the Paris Agreement. He has said that he would like to develop parts of the Amazon rather than leave it green.
NAFTA was replaced by the USMCA: The North American countries of the USA, Mexico and Canada signed the USMCA deal that they had agreed upon. This deal will replace NAFTA. It has rules for trade across this region of North America. This is a deal that the three countries agreed upon after President Trump said that the NAFTA deal was outdated and unfair to the Americans.
Written by: Sunaina Murthy. Sunaina is a biotechnologist, writer, greedy reader, and amateur photographer.