G20 Summit Draft Communiqué Released

At the G20 financial summit in London yesterday, world leaders agreed to reject trade protectionism and strengthen financial regulations to fight the worst global economic crisis since the Great Depression.

The communiqué drafted for the meeting obtained by Reuters said " Extended for 12 months pledges made last November not to raise new trade barriers.” The World Trade Organization will report on any measure that does or could cause trade distortions.

Leaders also agreed to strengthen regulations on all financial markets and institutions. The draft communiqué said the oversight also includes systemically important hedge funds for the first time.

The Financial Stability Board will replace the established Financial Stability Forum and will work with the International Monetary Fund to identify and report on macroeconomic and financial risks and actions needed to address them. The communiqué also includes measures to strengthen regulations on tax havens.

The latest draft of the communiqué urges an increase in IMF resources to be provided to developing nations. IMF First Deputy Managing Director John Lipsky said, “The negotiations include a proposal from the U.S. to triple IMF funds from 250 billion U.S. dollars to 750 billion dollars.”

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