Bank of Japan Governor Haruhiko Kuroda called for "rational" debate among G7 nations to prevent protectionist trade measures from disrupting the global economy.

Countries that adopt protectionist measures will only see their economies suffer from disruptions in imports, as other countries will likely take counter-measures, he said.

Fears of a global trade war are overshadowing G7 talks at the Canadian resort town, as Washington's allies vowed to push back against a U.S. decision to impose tariffs on their steel and aluminum exports.

Unlike some other U.S. allies, Japan had not been granted even temporary tariff exemptions.

Japanese Finance Minister Taro Aso, who was also in Whistler for the G7, repeated Tokyo's request for a permanent exemption in talks with his U.S. counterpart Steven Mnuchin.

Aso also called on the United States to join forces in stopping China from taking market-distorting trade practices, the official said, a sign Tokyo wants a united front with Washington against China despite disagreement over U.S. tariffs.

The G7 finance leaders meet against a backdrop of solid global economic growth, though rising U.S. interest rates has caused capital outflows from some emerging economies such as Argentina and Turkey.

Kuroda said he did not see problems in the two countries spilling over into other emerging economies with sound fundamentals, particularly those in Asia.

"U.S. monetary policy normalisation is proceeding very cautiously," Kuroda said. "The fact U.S. monetary policy is normalising is because the U.S. economy is in good shape and inflation is converging toward the central bank's target. If so, that's beneficial for the global economy."

Subscribe to premium content!

  • Daily trading ideas - click to view sample report
  • Entry, target, stop-loss levels
  • Position size in lots
  • Short analysis to each trade
  • Forex newsletter - latest currency market news and trading ideas
  • Access to premium content on


Cron Job Starts