With Trump and Xi on the cusp of a trade truce, this is how the G20 summit could impact the global economy

Washington and China seem closer to resolving things, but from the widest perspective, the danger is that the present reasonable freedom of trade worldwide will be weakened further

What should we expect from the G20 summit meeting that takes place in Osaka, Japan, at the end of this week? No quick end to the rumbling global trade war for a start – but Wall Street is betting on a truce, and that is probably what will happen.

The G20 matters because the countries represented there generate some 80 per cent of the world’s economic activity. Much has been made of the way the global economy has become ever more integrated, but global politics remain set in their national silos.

Well, the G20 is the nearest thing we have to a world government. It is, of course, a long way from that, but at least it gives a framework for discussions between the head of national states about their mutual self-interests. And right now, mutual self-interest requires a reasonable accord on keeping trade lines open.