Originally published September 23 2005
UN organization says China is not responsible for U.S. deficit
by Mike Adams, the Health Ranger, NaturalNews Editor
United Nations Conference on Trade and Development (Unctad) say that China's surging exports are not to blame for the big trade imbalances in the world market, and, The Guardian reports, Unctad says Japan and Germany must raise economic growth to correct these imbalances.
Japan and Germany need to raise economic growth sharply if the world economy is to correct its growing imbalances, particularly the US current account deficit, a United Nations organisation said yesterday.
Releasing its annual trade and development report, the United Nations Conference on Trade and Development (Unctad) also said that the strong growth in developing countries' economies in the past three years meant many countries could still meet the UN's millennium development goals aimed at halving extreme poverty by 2015.
Article continues The report said it was wrong to blame surging Chinese exports for the big trade imbalances around the world and to call for a big revaluation of the yuan as a way to reduce them.
Supachai Panitchpakdi, the former World Trade Organisation chief and Unctad's new secretary general, said China represented only 8% or so of the total global current account surplus in 2004 whereas Germany and Japan made up nearer 30%, or $268bn (�146bn).
"It should not be forgotten that much of the counterpart to the United States' external deficit is to be found in the surpluses of other developed countries.
For years it has pegged the yuan at a low level to help its exporters, which sell vast amounts of goods to the US.
It recently made a small move in that direction but many economists say that if the US current account deficit is to be reduced, the US economy will have to grow more slowly, thus crimping its imports.
It would be better, he said, if Europe - especially Germany, and Japan, the world's second and third-largest economies - grew faster and sucked in more imports.
Heiner Flassbeck, a senior Unctad official, said the rise in oil prices over the past year was hurting some developing countries that imported oil but had been of huge benefit to the countries that produced oil.
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