Professor Fariborz Moshirian from the UNSW Business School warns that it may be a difficult summit, dominated by trade issues.
The trade dispute between China and the US will dominate the agenda of G20 in Osaka set for today and tomorrow.
“The current trade dispute has increased the risk of substantial global economic slowdown over the next year,” warns Professor Fariborz Moshirian from the UNSW Business School. “However, the Summit may not necessarily lead to a breakthrough for trade dispute between the G2: the US and China. This means that many great ideas put forward by Japan for this year’s summit will be given less time for consultation at this Summit.”
He argues the only sustainable and long-term solution for this trade dispute will be to revamp the operation of the WTO, create much stronger global governance for trade & investment, plus intellectual properties and promote multilateral free trade agreements.
“In this new setting of substantial global governance’s reform, the US and China must follow all policies and rules associated with subsidies, intellectual properties, fair trade and investment and ensure that no national policy could jeopardise an inclusive, sustained and strong economic growth around the world,” says Professor Fariborz Moshirian, Director of the Institute of Global Finance at UNSW Sydney.