IMF Annual Meetings Chance For US, China To Move To 'Trade Peace' - Managing Director

The annual International Monetary Fund (INF) meetings held this week provide an opportunity for the United States and China to end the trade war, IMF Managing Director Kristalina Georgieva said on Thursday

WASHINGTON (UrduPoint News / Sputnik - 17th October, 2019) The annual International Monetary Fund (INF) meetings held this week provide an opportunity for the United States and China to end the trade war, IMF Managing Director Kristalina Georgieva said on Thursday.

"The IMF meetings this week in Washington is an opportunity for all parties to make progress in moving from a trade truth to a trade peace," Georgieva said during an opening news conference for the annual meetings.

On Friday, US President Donald Trump said Beijing and Washington had agreed on the first phase of a trade deal after reaching consensus on several key issues - Currency exchange, technology transfer, intellectual property, financial services and the purchase of up to $50 billion worth of US agricultural goods by China.

Georgieva said that she was encouraged by the announcement and urged the parties to continue until a final agreement is reached.

Other IMF senior staff, including First Deputy Managing Director David Lipton, echoed Georgieva's statements.

"The United States and China need to deescalate conflict and have dialogue," Lipton said. "Both countries have a lot to gain, but gains only come if there is real compromise."

The trade row between the world's two largest economies erupted in June 2018 when the United States imposed the first - of many - round of tariffs on Chinese exports, prompting Beijing to respond in kind. Since, the two countries have been engaged in a full-blown trade war, but have also started negotiations to resolve their trade-related differences.

On Tuesday, IMF Chief Economist Gita Gopinath said the US-China trade tensions will likely reduce global GDP growth by around 0.8 percent in 2020 if left unresolved.