G20 fiscal and monetary policy leaders intensify calls to resolve multilateral system

JOHANNESBURG - G20 fiscal and monetary policy leaders have intensified calls to resolve the multilateral system as the globe scrambles to respond to the threat of even higher tariffs.

United States (US) President Donald Trump turned the global economy on its head recently after he announced the imposition on all trade partners.

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Trump’s administration announced a 10% baseline, while higher tariffs on specific countries have been put on a 90-day pause.

The G20 finance ministers and central bank governors met for a second time in Washington DC on Thursday, where trade matters were on the table.

The trade war between the world's two largest economies – the US and China – has been escalating.

The aggression has raised concerns that the global economy could suffer a massive loss, with threats that a global recession could be on the horizon.

South African Reserve Bank (SARB) Governor Lesetja Kganyago said talks were underway to try to safeguard global trade and prevent excessive volatility for emerging economies.

"The negotiations that are taking place are taking place bilaterally and is very resource-intensive. There are also calls that we should restore the multilateral system and the multilateral system with regards to trade would have the World Trade Organisation [WTO] at the centre of it."

The WTO is among international institutions labelled as outdated and unable to deal with the complexities of the changing global order.