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By Takashi Umekawa and Michael Nienaber
TOKYO/BERLIN (Reuters) - Germany will press G20 members to sign off on a set of principles including free trade at this week's meeting of the group's financial leaders, in what the Trump administration may perceive as a challenge to its more protectionist stance.
The move underscores Germany's desire to rebuff any explicit U.S. demands to water down the group's commitment to free trade, as German Chancellor Angela Merkel prepares for her first meeting with President Donald Trump on Friday.
Group of 20 finance leaders meet in Baden-Baden, Germany, on Friday and Saturday. It will be their first meeting attended by representatives of Trump's administration.
But any attempts to dilute the commitment to free trade will likely face resistance from emerging economies reliant on global exports, including China, putting the onus on Germany to seek a compromise.
The document, which is currently being circulated among G20 members, lays out a list of about 10 principles on how a "well performing economy" should act on areas of fiscal, monetary and trade policies, the sources said.
It highlights areas Germany places importance on, such as the need for countries to make their financial system resilient to shocks and to refrain from excessive fiscal loosening through "prudent management of public finances," the sources said.
"Among the most important issues from Germany's point of view, regarding the world's economy, is the issue of resilience. That's our top priority," one of the sources said.
Germany often argues that economies should not rely too much on short-term stimulus and take steps to strengthen fundamentals so that their economies are resilient against shocks.
The sources spoke on condition of anonymity because they are not authorities to speak to the media.
"Let's see if we'll get everyone on board in Baden-Baden or only after at the summit of leaders (in July)," one official said.
Merkel underscored the importance of free trade in a speech to business leaders in Munich this week. Her talks with Trump in Washington are expected to touch on a range of issues, including defence spending.
Causes of friction between Berlin and Washington also include an accusation by senior Trump adviser Peter Navarro that Germany profits unfairly from a weak euro and a threat to impose 35 percent tariffs on imported vehicles.
(Writing by Leika Kihara; Editing by Kim Coghill)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)