Mnuchin says not seeking trade war
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[January 25, 2018]
By Noah Barkin and Yara Bayoumy
DAVOS, Switzerland (Reuters) - A day after
sending the dollar reeling with comments supportive of a weak U.S.
currency, U.S Treasury Secretary Steven Mnuchin said the Trump
administration was not seeking trade wars but would defend its economic
interests.
At a news conference at the World Economic Forum in Davos, Mnuchin
played down his comments on Wednesday that a weaker dollar was "good for
us as it relates to trade and opportunities", saying they had been
"balanced and consistent".
The remarks were seen by markets as a departure from traditional U.S.
currency policy and a sign that U.S. President Donald Trump is stepping
up his attack on China and other big trading partners as part of his
"America First" agenda.
"I thought my comment on the dollar was actually quite clear yesterday,"
Mnuchin told reporters. "I thought it was actually balanced and
consistent with what I've said before, which is, we are not concerned
with where the dollar is in the short term."

Mnuchin said there were "both advantages and disadvantages of where the
dollar is in the short-term" and stressed that the United States wanted
fair economic competition.
"We want free and fair and reciprocal trade. So I think it's very clear.
We're not looking to get into trade wars. On the other hand we are
looking to defend America's interests."
After Mnuchin's remarks on Wednesday, Commerce Secretary Wilbur Ross
denied that his colleague was advocating a weaker dollar, but when asked
about the risk of trade wars, he told CNBC: "Trade war has been in place
for quite a little while, the difference is the U.S. troops are now
coming to the ramparts."
Speaking at the Thursday morning news conference, Ross said: "People are
using some predatory practices against us and we're not flinching from
that."
TRUMP SPEECH
The comments came a day after European leaders, without specifically
mentioning the United States, warned against a rise in nationalism and
protectionism.
Chinese Foreign Ministry spokeswoman Hua Chunying told a regular news
briefing in Beijing on Thursday that the country's leaders were
committed to openness.
"I believe everyone has already noticed that at the end of last year
China has taken real steps to greatly loosen its financial industry,
market access and others," she said.
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Steven Mnuchin, U.S. Secretary of the Treasury, attends the World
Economic Forum (WEF) annual meeting in Davos, Switzerland January
25, 2018. REUTERS/Denis Balibouse

Speaking later on Thursday, British Chancellor of the Exchequer
Philip Hammond said sterling, which tumbled after the 2016 Brexit
vote, had been appreciating. He turned to Mnuchin and added: "And we
seem to be recovering quite a bit more, Steve, thanks very much."
Trump, who landed in Zurich on Thursday morning on his way to Davos,
is expected to promote his "America First" policies in a speech at
the forum on Friday.
Mnuchin said he had met the economic adviser to Chinese President Xi
Jinping and had a "very good and open dialogue", talking about North
Korea sanctions and trade.
"We're working together on the issue of the trade deficit in a
mutual desire to shrink the trade deficit. We talked about some very
specific ideas that we both have on that."
Asked about negotiations between the United States, Canada and
Mexico to rework the North American Free Trade Agreement (NAFTA),
Ross said it was more important to get a "proper deal" than a quick
agreement.
But he conceded that a Mexican presidential election, Canadian
provincial elections and the U.S. congressional election -- all this
year -- could complicate the talks if they drag on.
"As we move further into the year, the political calendar gets more
complicated," Ross said.

(Additional reporting by Alessandra Galloni and Soyoung Kim; Writing
by Noah Barkin and Yara Bayoumy,; Editing by William Maclean)
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