The finance chiefs of the Group of 20 leading economies, except those from China, agreed Tuesday on the importance of removing nonmarket policies to curb global trade imbalances.
"We agree that countries should take steps to eliminate nonmarket policies and practices that exacerbate imbalances," the G20 chair's statement said after the conclusion of a two-day meeting in Asheville, North Carolina.
The finance ministers and central bank governors of the other members confirmed that countries, especially those with excessive and long-running external surpluses, should "remove distortions that constrain domestic consumption and that result in an overreliance on exports for growth," according to the statement.
All of the finance chiefs reaffirmed the group's commitment to ensure that exchange rates reflect underlying economic fundamentals.
The meeting came as many governments worldwide are struggling to keep long-term bond yields under control and with little apparent hope that the U.S.-Israeli war against Iran will end anytime soon.
"On speed, we want less time consumed by uncertainty and more time devoted to investment, growth and market access," U.S. Treasury Secretary Scott Bessent said as he opened a morning session on the growing sovereign debt problem in emerging and developing economies.
As the war started by the United States and Israel in late February has driven up global energy prices and disrupted supply chains, inflation has shown signs of rising, with policymakers and investors concerned about borrowing costs.
A sell-off in global bond markets is accelerating, with Japan's 10-year bond yield hitting 3 percent on Tuesday for the first time since 1996.
The G20 ministerial meeting was convened to lay the groundwork for a summit to be hosted by U.S. President Donald Trump in Florida in December, at which he intends to showcase the strength of the American economy.
On the second day of their discussions, the finance chiefs discussed global trade imbalances, with China's long-standing excess industrial capacity in mind.
But China has consistently rejected Western criticism that it has flooded the world with cheap exports from companies backed by heavy government subsidies.
The United States initially aimed to release a joint communique after the two days of discussions.
However, the group could not reach a consensus on wording regarding global economic imbalances because of China's dissent, according to Bessent.
