RSIS: G20 and Time for Greater Multilateral Role

The world’s 20 largest economies have met annually for 10 years, since the 1997-1998 Asian financial crisis, to plan economic cooperation. At this year’s summit in Argentina, the US and Chinese presidents agreed to a 90-day pause on the trade war and continue negotiations. The United States will delay raising tariffs on $200 billion worth of Chinese goods. G20 leaders also supported “necessary reform” of the World Trade Organization. Writing for RSIS, Pradumna Bickram Rana and Xianbai Ji praise the G20 track record, including establishing the Financial Stability Board, easing cross-border taxation and encouraging International Monetary Fund reform. Still, the authors contend that the G20 could do more on international trade because “no other institution is better positioned than the G20 in terms of the collective clout that it possesses.” Reforms for the WTO could include speeding up decision-making and improving governance, possibly with a weighted voting system. Host countries now set agendas, and to improve transition from year to year, the authors encourage a formal structure for permanent G20 governance and staff. – YaleGlobal