BADEN-BADEN: Finance ministers from the world’s top nations gathered Friday in Germany, with fears of a looming trade war over US President Donald Trump’s “America First” policy yet to be dispelled.
Trump has already torn up a transpacific free-trade pact, threatened punitive tariffs against multinationals with factories outside the US and attacked “currency manipulation” by export giant China.
And his stated aim of keeping jobs at home by making it costly for American companies to outsource is likely to dominate talks at the G-20 gathering of finance ministers and central bankers in the western German spa town of Baden-Baden.
Trump’s emissary, US Treasury Secretary Steven Mnuchin, faces scrutiny from Washington’s key trading partners for clues on whether the world’s biggest economy fully intends to abandon its long-standing support of open markets and free trade.
A source close to the talks told AFP that sticking points remained on trade and climate change funding as the gathering got underway on Friday.
The US delegation refused to include any language rejecting protectionism in a final statement to be signed by ministers Saturday, the source said. Countries like France, Italy, China and Brazil argued — against US resistance — for keeping a reference to “rules-based” trade in the final communiqué, while Germany pushed for a compromise solution referring only to “fairness.”
On the eve of the meeting, German Chancellor Angela Merkel and Chinese President Xi Jinping issued a rare joint pledge, saying they would “together fight for free-trade and open markets.”
On Thursday, following talks with German Finance Minister Wolfgang Schaeuble, Mnuchin said Washington had no desire to fight “trade wars” with other economic powers. Mnuchin said Trump’s administration would keep a close eye on the levels of key global currencies, but pursue policies in the interest of “economic growth that is good for the US and the rest of the world.” Schaeuble told public broadcaster SWR on Friday morning that Mnuchin had told him explicitly that “of course the Americans are for free trade and also for us setting that out in Baden-Baden.”
“I think we will come to an agreement," the veteran finance minister went on.
For French Finance Minister Michel Sapin, the problem is that Washington did not appear to have a clear position on trade.
“We do not have a well-argued position from the US and that is the main difficulty that we have today,” he told AFP, adding that it is the “fear of a lack of position that is weighing on the debate.” “It is possible that the US is unable to say what they plan to do beyond the simplistic declarations in a tweet,” he added.
G-20 ministers meet as ‘America First’ casts pall
G-20 ministers meet as ‘America First’ casts pall
Saudi investment pipeline active as reforms advance, says Pakistan minister
ALULA: Pakistan’s Finance Minister Mohammed Aurangzeb described Saudi Arabia as a “longstanding partner” and emphasized the importance of sustainable, mutually beneficial cooperation, particularly in key economic sectors.
Speaking to Arab News on the sidelines of the AlUla Conference for Emerging Market Economies, Aurangzeb said the relationship between Pakistan and Saudi Arabia remains resilient despite global geopolitical tensions.
“The Kingdom has been a longstanding partner of Pakistan for the longest time, and we are very grateful for how we have been supported through thick and thin, through rough patches and, even now that we have achieved macroeconomic stability, I think we are now well positioned for growth.”
Aurangzeb said the partnership has facilitated investment across several sectors, including minerals and mining, information technology, agriculture, and tourism. He cited an active pipeline of Saudi investments, including Wafi’s entry into Pakistan’s downstream oil and gas sector.
“The Kingdom has been very public about their appetite for the country, and the sectors are minerals and mining, IT, agriculture, tourism; and there are already investments which have come in. For example, Wafi came in (in terms of downstream oil and gas stations). There’s a very active pipeline.”
He said private sector activity is driving growth in these areas, while government-to-government cooperation is focused mainly on infrastructure development.
Acknowledging longstanding investor concerns related to bureaucracy and delays, Aurangzeb said Pakistan has made progress over the past two years through structural reforms and fiscal discipline, alongside efforts to improve the business environment.
“The last two years we have worked very hard in terms of structural reforms, in terms of what I call getting the basic hygiene right, in terms of the fiscal situation, the current economic situation (…) in terms of all those areas of getting the basic hygiene in a good place.”
Aurangzeb highlighted mining and refining as key areas of engagement, including discussions around the Reko Diq project, while stressing that talks with Saudi investors extend beyond individual ventures.
“From my perspective, it’s not just about one mine, the discussions will continue with the Saudi investors on a number of these areas.”
He also pointed to growing cooperation in the IT sector, particularly in artificial intelligence, noting that several Pakistani tech firms are already in discussions with Saudi counterparts or have established offices in the Kingdom.
Referring to recent talks with Saudi Minister of Economy and Planning Faisal Alibrahim, Aurangzeb said Pakistan’s large freelance workforce presents opportunities for deeper collaboration, provided skills development keeps pace with demand.
“I was just with (Saudi) minister of economy and planning, and he was specifically referring to the Pakistani tech talent, and he is absolutely right. We have the third-largest freelancer population in the world, and what we need to do is to ensure that we upscale, rescale, upgrade them.”
Aurangzeb also cited opportunities to benefit from Saudi Arabia’s experience in the energy sector and noted continued cooperation in defense production.
Looking ahead, he said Pakistan aims to recalibrate its relationship with Saudi Arabia toward trade and investment rather than reliance on aid.
“Our prime minister has been very clear that we want to move this entire discussion as we go forward from aid and support to trade and investment.”
