CNBC — Germany will press G20 members to sign off on a set of principles including free trade at this week’s meeting of the group’s financial leaders in Baden Baden , in what the Trump administration may perceive as a challenge to its more protectionist stance.
In an unusual move, Germany, the host of the meeting, will stress the importance of global free trade in a document separate from the group’s main communique, G20 sources said.
The move underscores Germany’s desire to rebuff any explicit U.S. demands to water down the group’s commitment to free trade, as German Chancellor Angela Merkel prepares for her first meeting with President Donald Trump on Friday.
Attaching a separate document also would allow Germany to clarify its priorites and avoid them from being overshadowed by what could be a more heated debate on protectionism and currency policy.
It is rare for a G20 chair country to issue a document separate from the main communique, especially one that differs on the tone and priorities.
Group of 20 finance leaders will meet on Friday and Saturday. It will be their first meeting attended by representatives of Trump’s administration.
A draft of the main G20 communique seen by Reuters appeared to accommodate Trump’s views on trade by dropping a phrase resisting “all forms of protectionism.”
But any attempts to dilute the commitment to free trade will likely face resistance from emerging economies reliant on global exports, including China, putting the onus on Germany to seek a compromise.
Merkel underscored the importance of free trade in a speech to business leaders in Munich this week. Her talks with Trump in Washington are expected to touch on a range of issues, including defence spending.
Causes of friction between Berlin and Washington also include an accusation by senior Trump adviser Peter Navarro that Germany profits unfairly from a weak euro and a threat to impose 35 percent tariffs on imported vehicles.
