Remove barriers, reduce subsidies to open up trade: Lagarde

9 Jul 2017

Warning against complacency in the current phase of global economic recovery, IMF chief Christine Lagarde has asked the members of G20 group, which includes India, to step up reforms by reducing trade barriers and subsidies to promote a level playing field.
Complementing the G20 leaders for adopting an action plan to strengthen the global financial safety net during the two- day Summit that ended last night, Lagarde said the world needs to continue to collaborate to address risks and ensure strong, sustained, balanced and inclusive growth.
"An essential part of this effort must be to reduce trade barriers, subsidies and other measures that distort trade.
"We can strengthen global trading system by reaffirming our commitment to well-enforced rules that promote competition while creating a level playing field," she said.
Lagarde, who met various G20 leaders at the Summit, including Prime Minister Narendra Modi, called for urgent action to strengthen global growth and build inclusive economies while keeping away from complacency.
The IMF chief said in a post G20 statement that in her discussions with leaders she noted the good news that the global economic recovery is on track, broad-based, and expected to continue into next year.
"At the same time, I warned about complacency and risks, including elevated financial vulnerabilities, low productivity, and rising inequality," she said.
"The current period of growth should be used as an opportunity: to further safeguard the financial sector by building up capital buffers and strengthening corporate and bank balance sheets," Lagarde added.