G7 draft pledges tackling ‘excessive imbalances'
Talks among G7 finance ministers faced challenges as the group worked to overcome divides on thorny issues like the impact of US President Donald Trump's tariffs and support for Ukraine. Finance ministers and central bank governors from the Group of Seven nations pledged to address 'excessive imbalances' in the global economy, Bloomberg News reported on Thursday, citing a draft communique. The finance leaders said there was a need for a common understanding of how 'non-market policies and practices' undermine international economic security, Bloomberg News reported. The draft communique calls for an analysis of 'market concentration and international supply chain resilience,' the report said.
The leaders said they agreed 'on the importance of a level playing field and taking a broadly coordinated approach to address the harm caused by those who do not abide by the same rules and lack transparency,' the report said.
The report said the draft did not name China but it recognised an increase in what it called international low-value shipments, also referred to as 'de minimis' packages, typically from Chinese retailers such as Temu and Shein. The G7 nations will consider options to increase sanctions on Russia if a ceasefire with Ukraine is not reached, the report said. Finance leaders from G7 countries - the US, UK, Canada, France, Germany, Italy and Japan - are meeting in Banff, Canada. The remarks reported may be part of a final communique being prepared to summarise three days of meetings among officials from the G7 countries.
The day began with an exchange of pleasantries and the traditional group photo in front of snow-capped mountains at a hotel in western Canada's Banff National Park. But friction among the group -- comprising Britain, Canada, France, Germany, Italy, Japan and the United States — emerged shortly after meetings began. Italian Finance Minister Giancarlo Giorgetti said the start of the talks faced 'some difficulties.' But he added that the group was 'able to overcome these differences,' and voiced hope a final statement reflecting G7 unity could be reached.
Few concrete details emerged from Wednesday's talks but US Treasury Secretary Scott Bessent had been expected to face pushback on Trump's tariffs, which threaten to drag down global economic growth. Bessent described Wednesday's talks as 'very productive.' The meeting's host, Canadian Finance Minister Francois-Philippe Champagne, declined to say whether he raised the issue of tariffs in his bilateral meeting with Bessent, but insisted the pair 'get along very well.' Asked about friction in the talks, Champagne said: 'That's why we have meetings, we have frank discussions.' 'We're both pleased about the progress we're making and the sense of unity of the G7,' Champagne told reporters. Japanese Finance Minister Katsunobu Kato told reporters that during his meeting with Bessent, he affirmed that US tariffs were 'extremely regrettable' and 'not always an appropriate measure to adjust trade imbalances.' — Agencies
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