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G20 summit provides 'breathing room' for German industry - DIHK

Reuters  |  BERLIN 

(Reuters) - Deals agreed at the summit in offer export-dependent German industry some "breathing room", though rising continues to pose a risk, the of Germany's Chambers of Commerce (DIHK) said on Sunday.

and the agreed at the summit to halt additional tariffs for 90 days as they try to prevent their trade war from escalating.

The nations also backed an overhaul of the Trade Organization (WTO), marking a victory for U.S. Donald Trump, a of the organisation that regulates international trade disputes.

said an agreement by the leaders of the 20 largest industrialised nations to reform the WTO was the most important outcome of the two-day summit in

However, he cautioned that significant challenges remain.

"The summit offered German industry some breathing room," he said in a statement. "But rising is not off the table. The differences between the and China, in particular, are too great."

At the same time, he said, the dialogue among leaders in provided a glimmer of hope.

"It is always better to speak with one another than to torment one another with new tariffs and trade barriers," he added.

Leading executives from German carmakers Volkswagen, and are due to meet at the to discuss trade policy next week.

They hope to stave off punitive tariffs but will make clear that they cannot negotiate on behalf of the

Trump, angered by what he sees as an unfair trade imbalance in the sector, has threatened to impose tariffs on EU-assembled vehicles in a move that could upend the industry's business model for selling cars in the

However, Trump has refrained from such measures while and undertake talks to cut other trade barriers.

(Reporting by Andrea Shalal; Editing by David Goodman)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sun, December 02 2018. 20:15 IST