Trade war slows down world economy: JK

JK says solution is needed to prevent other countries become victims of trade war.

REPUBLIKA.CO.ID, BUENOS AIRES — Vice President Jusuf Kalla (JK) said Indonesia carried a mission in G20 meeting held currently in Buenos Aires, Argentina. The meeting will focused on finding a solution to the world economic problem due to trade wars.

As for the result of the trade war between the United States (US) and China, the wheels of the world economy have been increasingly slowing down. This high-level meeting is expected to be able to put forward solutions to the decline in the performance of the world economy through a better world trade climate.

"What needs to be understood together is the key to the current economic problems is how to find a way out of a trade war between two economic giants, namely the US and China, that caused world economy to slow down, including in Indonesia," JK said in a press release on Friday (Nov 30).

JK said trade war made world commodity prices decline. He explained it because demand for manufactured products also declined, especially in China, which is one of Indonesia's biggest export destinations.

Therefore, JK asserted solution is needed to prevent other countries become victims of trade war. He said other countries that have cooperation with US and China are also affected by the weakening of the world economy.

On the other hand, JK saw there was a positive thing of change towards a better world economy. First, the failure to reach an agreement at the APEC 2018 meeting in Papua New Guinea provides a message of vigilance in all countries, especially G20 members.

At the meeting, an agreement must be reached together for a better economy. Secondly, the United States began to show its attitude and willingness to cooperate with other countries.

US Government has also rebuild communications with Canada and Mexico, related to the potential to re-establish trade agreements between countries in North America or NAFTA. JK expected step by step US and China relation will be better.

"This is step by step (changes to the better direction). Because US initially dissolved NAFTA, but now US, Mexico and Canada begin to build communication again. We also hope that relations with China will gradually improve,” JK explained.

The G20 summit will take place for two days, started from Nov 30 to Dec. The meeting will begin with the arrival of the countries leaders, joint photos, plenary meetings and cultural performances and dinner with all G20 state leaders.

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