The Daily Update - G20 Summit

As the G20 summit closes in China, the two main topics of conversation were the fallout effects that Brexit would have on the global economy and Donald Trump's "America First" speech he gave in Cleveland on Thursday evening. The finance ministers at the summit had already acknowledged that global growth was weaker than desired, however insisted that they had the tools available and were “well positioned to proactively address the potential economic and financial consequences”.

In a statement issued at the end of the summit the G20 ministers said  “In light of recent developments, we reiterate our determination to use all policy tools – monetary, fiscal and structural – individually and collectively to achieve our goal of strong, sustainable, balanced and inclusive growth.” adding “We are taking actions to foster confidence and support growth”.

On Thursday Donald Trump made it clear that if he won the race for the White House he would walk away from trade agreements if they failed to produce a much better deal for the US, adding that “Americanism, not globalism, will be our credo,”. Vicente Fox, the former Mexican President said that if the US walked away from the North American Free Trade Agreement (NAFTA) the biggest loser would be the US. "Mexico imports from the United States total over $750 billion every year. We import, we buy from the United States." he said, adding "That means over 10 million jobs for U.S. citizens. So you don't lose jobs by trading. You gain wealth and opportunities to your people".

Just as worrying was Trump’s interview with the New York Times, were he said he would not guarantee that the US would come to the aid of its NATO allies if attacked. This is the cornerstone of the NATO agreement whereby its member states have agreed a mutual defence policy in response to an external attack. However Trump did say he would consider their payment to the United States before offering protection!!