12 hrs ago

Bessent Warns G20 Subsidies and Export Dependence Fuel Tensions

Scott Bessent told the G20 that some countries rely too heavily on selling goods to other countries.

He said subsidies and limits on market access can make competition unfair.

These policies may weaken businesses and workers in other countries.

They can also make supply chains less dependable.

Bessent said economic imbalances come from government policy choices, not by accident.

He said both countries with large surpluses and countries with large deficits should help fix the problem.

The G20 is studying when these imbalances become dangerous and how their effects spread.

The International Monetary Fund and Organisation for Economic Co-operation and Development are expected to help monitor the situation.

Key facts

Main warning: Persistent global imbalances can hurt workers, weaken supply-chain resilience and create economic tensions.
Policies cited: Subsidies, restricted market access, export dependence, savings, consumption, investment and exchange-rate policies.
Most concerning imbalances: Those that are excessive, persistent and larger than underlying macroeconomic fundamentals justify.
Shared responsibility: Both surplus and deficit economies have a common interest and responsibility in addressing imbalances.
International institutions: The International Monetary Fund and Organisation for Economic Co-operation and Development have roles in monitoring imbalances and recommending policies.
G20 participants: The Group of Twenty includes major economies such as India, the United States, China, Japan, Germany and Brazil.
Financial risks: Bessent urged continued vigilance over possible risks to the financial sector.

thehansindia.com · 13 hrs ago