Lalit K JhaWashington, Oct 13 (PTI) The IMF today defended theongoing NAFTA negotiations with its chief Christine Lagardearguing that any trade deal that is two decades-old needs tobe revised and reviewed.
"For a trade agreement which has been in existence for,what, 20 years now, it is not unusual or unnecessary toactually look into it, go under the skin of the agreement,find out what works, what does not work, what can be improved,what new topics should be considered -- given the changes thathave affected the markets in the last two decades," Lagardetold reporters at a news conference here.
"Twenty years ago, were we communicating by cell phones?Were those economies so service-dominated? Probably not. Thatthere have been negotiations is certainly welcome," she said.
The IMF chief, who, in her previous roles served asFrench finance minister, agriculture minister, and minister ofcommerce and industry, said trade agreements should be revisedfrom time to time.
"I, actually, personally think, having been trademinister myself for a few years in my country, that tradeagreements should constantly take into account changes inorder to be adjusted and to continue to facilitate trade andto increase the movement," she said.
However, Lagarde said, the aim should not be to justaccelerate the movement.
"It has also to consider what regions, what areas, whatsectors are going to be affected by trade, and what measureswill be taken in order to address those issues in order tohelp people adjust, relocate, be mobile, acquire the trainingthat will help them also benefit from the situation," shesaid.
Lagarde said her comment applied equally to trade and totechnological changes that are taking place at the moment.
However, she refrained from making any direct comment onthe ongoing North America Free Trade Agreement (NAFTA)negotiations.
"It is underway, and I would refrain from commenting onthe current state of negotiations which always -- like in anynegotiations -- involve taking certain positions with allowingmaneuvering room and organising the landing area wherenegotiators want to eventually arrive at," she said.
NAFTA is an agreement signed by Canada, Mexico and the USto create a trilateral trade bloc in North America. Thecurrent negotiations were necessitated after Trump threatenedto pull out from the agreement if the renegotiations did nottake place.
During his entire presidential campaign, Trump had beenvery critical of NAFTA, which came into force in 1994.
Responding to another question, Lagarde said therelevance of IMF was unlikely to be hit with the Europeanscreating a European Monetary Fund.
"I have no fear. I have no fear," she said, adding thatshe has expectations.
"Having been on both sides of the fence, having beenfinance minister, working with the IMF in, you know, 2010-2011, now being head of the IMF, I know that the cooperationwas very much needed and will continue to be needed in a shapeor form that will be determined by the European actors," shesaid.
Lagarde said the IMF was the "international financialsafety net" and the organisation will continue to play thatrole"That is our mission. That is our duty," she said. PTILKJ CHTCHT.
This is unedited, unformatted feed from the Press Trust of India wire.