Mnuchin getting questions on tax reform at G7 meeting


OECD officials say USA tax treaties with other countries already contain the multilateral deal's principles.

Japanese Finance Minister Taro Aso leaves at the end of a plenary session during a G7 of Finance Ministers and Central Bank Governors meeting, in Bari, southern Italy, Friday, May 12, 2017.

A senior Treasury official said Mnuchin's finance counterparts haven't been "shy about asking direct questions" about Trump's plans to reform the USA tax code.

"Inclusive growth means first of all that growth has to be shared with all segment and regions of society", Finance Minister Pier Carlo Padoan said Friday.

The deal would allow US companies to ship liquefied natural gas to China and tackles a range of long-standing barriers, ending a ban on imports of USA beef and moving a step closer to allowing Chinese poultry on American supermarket shelves.

Mnuchin said his meetings with finance leaders had led to better understanding of the USA president's position that trade must be fair and balanced as well as open.

Canadian Finance Minister William Morneau, right, talks with President of the German Central Bank Jens Weidmann as they exit the Castle of Bari, venue of the G7 of Ministers of finance, in Bari, southern Italy, Friday, May.

Trade issues are likely to be taken up at a G-7 leaders' summit on May 26 to 27 in Taormina, Sicily, that Trump will attend.

Already, Trump has yanked the United States out of the 12-nation Trans Pacific trade agreement and threatened to pull out of its NAFTA agreement with Canada and Mexico. They'll also look for ways to promote growth and combat terrorist financing and tax avoidance by major corporations.

A slew of recent announcements-including an investigation into steel imports and a warning the USA may pull out of a trade agreement with Canada and Mexico-have renewed fears the Trump administration could spark a trade war that could hit the global economy just as it appears to be gaining momentum.

The G7 said banks should strengthen their resilience to attacks through regular exercises and simulations, known as "penetration tests", and it called on a cyber security task force it set up in 2015 to accelerate its work."We recognise that cyber incidents represent a growing threat for our economies and that appropriate economy-wide policy responses are needed", the G7 said in a statement.

He said the administration was focused on growth, "and growth in the United States is good for the world economy".

Before the G7 meeting, several ministers and officials held an early-morning discussion of Greece's long-running debt crisis to prepare for a May 22 meeting of euro zone finance ministers on the disbursement of new loans.

Britain, Canada, France, Germany, Italy, Japan and the United States make up the G7.