The world's financial leaders will renounce competitive devaluations and warn against exchange rate volatility, but they have not yet found a common stance on trade and protectionism, a draft statement of their meeting in Germany showed on Friday. Ciara Lee reports.
Security tight ahead of a G20 meeting in Germany, particularly after a letter bomb was sent to the IMF headquarters in Paris this week. Hoping for a peaceful meeting - finance ministers and central bank governors of the world's 20 largest economies - although many expect them to struggle to present a united front on protectionism. A draft agenda seen by Reuters makes no reference to trade issues, breaking with a decade-old tradition of G20 statement where they usually endorse free trade and reject protectionism. And even the German Finance Minister appears to be taking a softer line, after warning earlier in the week of the dangers of trade barriers. (SOUNDBITE) (German) GERMAN FINANCE MINISTER, WOLFGANG SCHAEUBLE, SAYING: "Protectionism was mentioned by no one so far and I don't think we need to spend too much time on it. It's about the right wording on the openness of the world trade system in the communiqué. Some of the positions are a little sensitive for various participants." Including Germany. Its economy minister has said it could file a suit against the United States at the World Trade Organization over President Donald Trump's proposed border tax. (SOUNDBITE) (English) LAITH KHALAF, SENIOR ANALYST AT HARGREAVES LANSDOWN, SAYING: "Perhaps deals over trade will be left until the heads of state meet later in the year. I suspect the finance ministers will at least look to sort of set the ground work for that meeting later on. So I find it hard to believe there will be no discussion on trade whatsoever." What they are committed to talking about is preventing competitive devaluations and exchange rate volatility. The meeting comes as German Chancellor Angela Merkel heads to the U.S. to meet with Donald Trump. The visit could shape the working relationship between two of the world's most powerful leaders. On the cards for them - funding for NATO and relations with Russia. Merkel is also expected to press Trump on fighting climate change.