HIGHLIGHTS-Global leaders meet in China for G20 summit

09/05/2016 8:49

HANGZHOU, China, Sept 5 (Reuters) - World leaders are meeting in the eastern Chinese city of Hangzhou for a G20 summit.

Following are highlights of comments made at the G20 meeting and related events:

U.S. PRESIDENT BARACK OBAMA

"We recognize the significant burden that the drug trade plays not just in the Philippines but around the world, and fighting narco-trafficking is tough but we will always assert the need to have due process and to engage in that fight against drugs in a way that's consistent with basic international norms. And so, undoubtedly, if and when we have a meeting this is something that's going to be brought up and my expectation, my hope is that it could be dealt with constructively. But I'll have my team discuss this. I've got a whole bunch of folks that I'm going to be meeting with over the course of the next several days and, as I've said, historically our relationship with the Philippines is one of our most important, and my relationship with the Philippine people has been extraordinarily warm and productive. So I expect that will continue, but I want to make sure that the setting is right and the timing is right for us to have the best conversation possible.

"As I said, I'm going to make an assessment. I just got out of these meetings. What is certainly true is that the issues of how we approach fighting crime and drug trafficking is a serious one for all of us and we've got to do it the right way."

CHINESE PRESIDENT XI JINPING

"We agree that facing the risks and challenges of the current world economy, and maintaining a peaceful and stable international environment are crucial. G20 countries should help each other and coordinate more closely on macro-economic policies; use various effective policy tools, such as fiscal, monetary and structural reforms.

"(We) will not only fend off short-term risks, but also pay attention to the medium-to-long term growth potential."

On trade:

"We will support the multilateral trading system and oppose trade protectionism to unleash the global trade growth potential and reverse declines in global trade.

"(G20 should) make transitions from crisis response mechanism to long-term governance mechanism, from focusing on short-term policies to putting equal emphasis on short-term, medium - and long-term policies, from demand management to supply-side reforms.

"We believe the transformation of the G20 Group concerns interests of all members and affects the further development of the world economy."

BRITISH PRIME MINISTER THERESA MAY

"We can be confident about the fundamental strengths of the UK economy and optimistic about the role we will forge for the UK building on our strength as a great trading nation in the future."

"As the UK leaves the EU I've set out our ambition to become the global leader in free trade. In my bilateral meetings I've signaled our determination to secure trade deals with other countries from around the world. The leaders from India, Mexico, South Korea and Singapore said that they would welcome talks on removing the barriers to trade between our countries."

"As we do more to advance free trade around the world, so we must do more to ensure that working people really benefit from the opportunities created by free trade. This discussion goes to the heart of how we build an economy that works for everyone. It's not enough just to take a hands off approach. We need bold action at home and collective action abroad.

"Here at the G20 we've decided to do more to stop aggressive tax avoidance and fight corruption. We've also agreed to work together to address the causes of excess production, including in the steel market, and we will establish a new forum to discuss issues such as subsidies that contribute to market distortions. It is vital we deliver action in all these areas if we are to retain support for free trade and the open economies that are the bedrock of global growth."

GERMAN CHANCELLOR ANGELA MERKEL

"China has set high priority that there needs to be action. Therefore, we agreed on a number of action plans in various areas, which we will monitor during the German G20-presidency."

"We had a bright discussion about climate-protection."

"We have intensively discussed trade. The WTO has reported that the number of protectionist measures are still rising."

"It is remarkable, that we have agreed on the issue of overcapacities, at the moment in the steel sector, to create a new Global Forum at the OECD, which is dealing with issues like that."

INTERNATIONAL MONETARY FUND MANAGING DIRECTOR CHRISTINE LAGARDE

"A first priority is a coordinated effort to raise growth. The G20 agreed that this will require making full use of all policy levers - monetary, fiscal, and structural - individually and collectively. The G20 also agreed to identify and prioritize reforms that provide the biggest growth impulse for each country, which is an area where the IMF is actively engaged. Pushing back against protectionism and pushing forward with free and fair trade is a vital component of this growth agenda.

"A second priority is a commitment that growth must be more widely shared. Again, countries should deploy proven tools to reduce excessive inequality and raise economic prospects, particularly for low-income groups and workers affected by rapid technological change - for example, through skills training and investments in education and health. We need increased growth, but it must be better balanced, more sustainable, and inclusive so as to benefit all people."

"The issue of low growth trap, we take the very strong view that policy makers have to act upon the current situation they have to use all positive tools and levers in order to respond to that risk, which is why I said monetary policy where possible, but where stretched too thin, use fiscal policy in order to stimulate demand, which we are short on at the moment."

On tax:

"Have we resolved all problems of the world, probably not, is there more work to be done, international taxation in fight against evasion, in fight against climate change, there's plenty to be done." (Reporting by Roberta Rampton, Michael Martina, Sue-Lin Wong, Kevin Yao, Engen Tham, Nate Taplin, Ruby Lian, Gernot Heller, William James, Kiyoshi Takenaka and Vladimir Soldatkin in HANGZHOU; Elias Glenn, Jake Spring, Yawen Chen, Jason Subler, Nick Heath, Ben Blanchard and John Ruwitch in BEIJING; Sarah Young in LONDON; Editing by Jacqueline Wong)

09/05/2016 8:49