Former Morgan Stanley Asia Chairman Stephen Roach was deeply dismayed by the recent G-20 financial leaders’ meeting, which he said was “indicative of a U.S. economy that is backing away from multilateralism.”
Financial leaders of the world’s biggest economies dropped a pledge to keep global trade free and open, acquiescing to an increasingly protectionist United States after a two-day meeting failed to yield a compromise, Reuters reported.
Breaking a decade-long tradition of endorsing open trade, G20 finance ministers and central bankers made only a token reference to trade in their communique on Saturday, a clear defeat for host nation Germany, which fought the new U.S. government’s attempts to water down past commitments.
Roach said G-20 leaders dropping their traditionally strong support of free trade was “disturbing” and reflected rising protectionism in the U.S., CNBC.com explained.
“It’s pretty disappointing when you get finance ministers from leading countries in the world who,