There is a trust issue in global trade

Speaking at the World Bank’s and IMF’s Spring Meetings 2018 conference in Washington, she added: “And when operators, investors, companies are uncertain about terms and conditions under which to organize the supply chain, terms and conditions under which they are going to trade, types of tariffs that they are going to have to pay, they step back and they don’t invest, they delay, they wait.”

Trump said Wednesday that the U.S. and Japan would be discussing ways to boost their trade partnership. The president added that this is his favorite approach to trade — bilaterally.

However, Lagarde told CNBC that in order to deal with trade imbalances “all countries have to be at the table.”

“We have seen protectionist measures on the rise for the last three years, there are issues about intellectual property, there are issues about subsidies to state-owned enterprises, and those have to be debated, they have to be discussed so that there is free trade,” she said.

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