|
WASHINGTON, June 5-- Managing Director of the International Monetary Fund (IMF) Christine Lagarde on Wednesday defended the role of trade in harnessing global growth, as the United States has escalated trade tensions with its trade partners in recent months. Lagarde told an event at the American Enterprise Institute (AEI) that she doesn't think the international multilateral system has relied too much on trade as a growth engine. Judging from the degree to which trade has contributed to improving the world economy, Lagarde said there shouldn't be "too many regrets" about the emphasis by multilateral institutions like the IMF on promoting global trade. Advocating trade, particularly when it comes to developing countries so as to facilitate the development of their economies, is absolutely not "to the exclusion of other channels of development," she said. All tools conducive to development have to be used, "and not to the detriment of others," Lagarde said. "But I think trade will continue to play a significant role." Earlier on the same day, Lagarde posted an article on the IMF blog website in which she warned of "growing concerns" about the impact of current trade tensions on global growth, urging the removal of existing trade barriers and restraint in erecting new ones. In the article titled "How to Help, Not Hinder Global Growth," Lagarde highlighted that global trade tensions "are looming larger," adding that the most recent U.S.-China tariffs risk further reducing investment, productivity and growth. | 
