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Mnuchin Says G-7 Nations More Comfortable With New US Economic Approach

by VOA News

   U.S. Treasury Secretary Steven Mnuchin said Saturday after meeting with
   officials from the world's other industrialized democracies that he
   thought they were more at ease with Donald Trump's economic policies.

   "People are more comfortable today, now that they've had the
   opportunity to spend time with me and listen to the president and hear
   our economic message," Mnuchin said after a two-day meeting in Bari,
   Italy, with members of the Group of Seven, industrialized nations
   commonly known as the G-7.

   Officials from the G-7 countries hoped to learn more about the U.S.
   president's plans, which they feared would revive protectionist
   policies and result in a global regression on issues such as banking
   reform and climate change.

   After the meeting, officials from Japan and member European countries
   remained concerned about the economic shift in Washington, particularly
   after Mnuchin said the U.S. reserved the right to be protectionist if
   it thought trade was not free or fair.

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

   Don't 'backpedal' on free trade

   Bank of France Governor Francois Villeroy de Galhau said continued
   uncertainty about U.S. policy could dampen optimism within the G-7
   about the global economy's gradual recovery from the financial crisis
   that began nearly a decade ago.

   De Galhau echoed the sentiments of Japanese Finance Minister Taro Aso,
   who said, "We must not backpedal on free trade, as it has contributed
   to economic prosperity."

   European officials complained that the U.S. meaning of "fair trade"
   remained unclear and that the only way to establish fairness was to
   abide by the multilateral framework developed by the World Trade
   Organization.

   A senior Japanese Finance Ministry official said the most significant
   question pertained to Trump's U.S. tax cut proposal that could fuel
   America's economic recovery.

   Trump has proposed slashing the U.S. corporate income tax rate and
   offer multinational businesses a steep tax break on overseas profits
   brought back to the U.S.

   The G-7 is composed of Britain, Canada, France, Germany, Italy, Japan
   and the U.S.