Warning shots ahead of G20 - ANZ

Analysts at ANZ explained warning shots were fired over the weekend from the IMF, OECD, and WTO ahead of G20 discussions (and were reinforced by China’s President Xi Jinping in his opening address), noting the undercurrent of protectionism and anti-trade feeling, both politically and across public opinion.

Key Quotes:

"The TPP is faltering, progress on TTIP (a US-EU trade and investment deal) is going nowhere, battle lines are being drawn on various issues (ie steel overcapacity in China), and protectionist sentiment is on the ascent, all at a time when trade is struggling.

The endgame is weaker microeconomic policy settings if populism takes hold. There will no doubt be a defence of free trade within the final G20 communique, but this is likely to lack any teeth."