G-20 Summit: No consensus yet on joint statement

V S Chandrasekhar
Seoul, Nov 11 (PTI) Amidst an escalating currency war
between the US and China and differences on trade imbalances,
negotiators at the G-20 Summit were struggling to find common
ground on a joint communique that was expected to speak out
against competitive devaluation of currencies and
protectionism, taking on board India's concerns.
Indian sources said notwithstanding the strong views held
by the US and China on issues like currency valuation and
trade deficits and surpluses, a consensus is evolving on the
need for countries not to resort to competitive devaluation or
undervaluation, a stand the G-20 Finance Ministers took at
their meeting in South Korea just last month.
China has been strongly resisting attempts by the US to
revalue its yuan, as a lower value gives it a tremendous
export advantage over other countries. But the US Federal
Reserve's decision to pump USD 600 billion into the sluggish
American economy, effectively devaluing the dollar, has also
not been taken to kindly by countries like Germany.
Notwithstanding Summit Spokesman Kim Yoon-kyung's claim
that major countries are deadlocked on issues, Indian sources
said the outlook was not all that gloomy and a consensus
document on many issues was likely to be hammered out during
Summit proceedings Friday.
Sources said the joint communique is expected to call for
countries to desist from competitive devaluation, a point
Prime Minister Manmohan Singh is expected to tell the Summit
in the plenary session immediately after its inauguration
Friday morning. MORE PTI