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Business Recorder
23-05-2025
- Business
- Business Recorder
G7 glosses over tariffs, pledges to cut global economic imbalances
BANFF: Finance ministers and central bank governors from the Group of Seven democracies papered over their differences on Thursday, pledging to address 'excessive imbalances' in the global economy and saying they could increase sanctions on Russia. Ahead of the meeting there had been doubt about whether there would be a final communique, given divisions over U.S. tariffs and Washington's reluctance to refer to Russia's war on Ukraine as illegal. But after talks that stretched over three days, participants signed on to a lengthy document that was devoid of previous language on fighting climate change and had softened references to the Ukraine war. 'We found common ground on the most pressing global issues that we face,' Canadian Finance Minister Francois-Philippe Champagne told the closing press conference. 'I think it sends a very clear signal to the world … that the G7 is united in purpose and in action.' The finance ministers and central bank governors, who met in the Canadian Rocky Mountains, said there was a need for a common understanding of how 'non-market policies and practices' undermine international economic security. The document did not name China, but references by the U.S. and other G7 economies to non-market policies and practices often are targeted at China's state subsidies and export-driven economic model. The G7 statement also did not mention the tariffs imposed by U.S. President Donald Trump that are disrupting global trade and supply chains and adding economic uncertainty. Champagne downplayed the lack of communique language on tariffs, but said ministers 'were not skating around' the issue and discussed their impacts during the meeting. Canada is seeking a deal to eliminate Trump's 25% tariffs on many goods, including steel and aluminum. 'We're trying to enhance growth and stability. And obviously tariffs are something in that context that you can't avoid discussing,' The finance meeting sets the stage for a G7 leaders summit June 15-17 in the nearby mountain resort area of Kananaskis. Trump will attend the summit, the White House confirmed on Thursday. The G7 communique called for an analysis of market concentration and international supply chain resilience. 'We agree 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,' it said. The communique also recognized an increase in low-value international 'de minimis' package shipments that can overwhelm customs and tax collection systems and be used for smuggling drugs and other illicit goods. The duty-free de minimis exemption for packages valued below $800 has been exploited by Chinese e-commerce companies including Shein and Temu . The Chinese embassy in Ottawa said it could not immediately comment on the G7 statement. 'Brutal' but not 'illegal' war The G7 finance chiefs condemned what they called Russia's 'continued brutal war' against Ukraine and said that if efforts to achieve a ceasefire failed, they would explore all possible options, including 'further ramping up sanctions.' The description of the Ukraine war was watered down from the prior G7 statement, opens new tab issued in October, before Trump's re-election, calling it an 'illegal, unjustifiable, and unprovoked war of aggression against Ukraine.' G7 finance leaders try to downplay tariff disputes, find consensus Trump has diminished U.S. support for Ukraine and has made statements suggesting that Kyiv was to blame for the conflict as he tries to coax Russia into peace talks. But the G7 ministers pledged to work together to ensure no countries that financed the Russian war would be eligible to benefit from the reconstruction of Ukraine. 'That's a very big statement,' said Champagne, calling it a fundamental pillar of the communique. It did not name China or other countries that the West has accused of supplying critical components to Russia in defiance of sanctions. Russia's sovereign assets in G7 jurisdictions would remain immobilized until Moscow ended the war and paid for the damage it has caused to Ukraine, the communique said. European Commission Executive Vice President Valdis Dombrovskis said the G7 ministers discussed a proposal to lower the G7-led $60-per-barrel price cap on Russian oil exports, given Russian crude is now selling under that level. But the plan was not mentioned in the communique, partly because U.S. Treasury Secretary Scott Bessent was not convinced that it was needed, a European official said. Brent crude currently trades around $64 per barrel. A European official said the United States is 'not convinced' about lowering the Russian oil price cap. A U.S. Treasury official did not immediately respond to a request for comment. Bessent's low profile Bessent came to Banff to the relief of many participants after he skipped a G20 finance meeting in Cape Town, South Africa in February. G7 officials described his interactions as 'constructive' and 'flexible' and said some initial stiffness later gave way to jokes over dinner. 'We had a feeling that it was a discussion between friends and allies,' a French official said. But Bessent took an unusually low profile for a U.S. Treasury secretary at the G7 meetings, staging no news conference and largely operating out of sight of the press. 'I had a very productive day,' he said to a reporter on Wednesday in his only public comment to media at the meeting.
The Sun
21-05-2025
- Business
- The Sun
G7 finance chiefs gather with Trump tariffs, Ukraine war in focus
BANFF: Top finance leaders from the G7 group of nations gathered in Canada for talks beginning Tuesday, with the war in Ukraine and economic turmoil unleashed by US President Donald Trump's tariffs at the top of minds. In meetings through Thursday, leaders will discuss global economic conditions and seek a common position on Ukraine, whose representatives have been invited to attend. Ukraine's presence 'sends a strong message to the world' that members are recommitting to support the country against Russia's invasion, Canadian Finance Minister Francois-Philippe Champagne told reporters Tuesday. 'We're also going to talk about what we're going to be doing in terms of reconstruction,' he said in a joint press conference with Ukrainian counterpart Sergii Marchenko. The talks in Canada's western province of Alberta come amid an uncertain approach among the G7 democracies towards Ukraine following Trump's return to power. Once broadly unified, the G7 -- Britain, Canada, France, Germany, Italy, Japan and the United States -- has been rattled by Trump, who reached out to Russia and slapped tariffs on both allies and competitors. Marchenko said he would seek during the meetings to reiterate Ukraine's position on the need for more pressure on Russia. 'Constructive' spirit While Trump's levies are not formally on the agenda, a Canadian official told reporters that 'trade and tariffs will be embedded in the discussion on the global economy.' Economists warn tariffs could fuel inflation and weigh on growth, and the effects of US trade policy loom over Treasury Secretary Scott Bessent's engagements. Asked about talks with Bessent, Champagne said Tuesday that despite tension around tariffs, both sides are looking to coordinate actions and tackle concerns including excess industrial capacity, non-market practices and financial crimes. 'The spirit around the table is constructive,' he said. A source briefed on US participation expects China's excess industrial capacity to be discussed, with members sharing concerns on the issue. A Japanese official told AFP its finance minister plans for a meeting with Bessent, seeking to address topics like foreign exchange. While the grouping discusses policies and solutions to issues like trade, security and climate change, analysts warned of unpredictability this time amid internal tensions. 'A test' The gathering in picturesque Banff will be 'a test or signal' of the G7's ability to agree on a final statement,' a French finance ministry official told reporters Tuesday. Although Canada's presidency hopes to issue a communique, this outcome must reflect 'a shared understanding of the global economic situation and common goals in addressing the challenges,' the official said. 'We will not be able to accept language that is completely watered down.' The source briefed on US participation said Washington is not inclined to 'do a communique just for the sake of doing a communique,' noting a consensus should align with Trump administration priorities too. German Finance Minister Lars Klingbeil warned Tuesday that trade disputes with the United States should be resolved as soon as possible. In comments before meeting his counterparts, Klingbeil said tariffs and uncertainties are a burden on the economy and job security. Trump has slapped a blanket 10 percent tariff on most US trading partners, threatening higher rates on economies including the European Union and sending jitters through the world economy. Officials told AFP they are not expecting trade agreements this week, but said the gathering is another chance to find common ground. But the issue of sanctions on Russia remains uncertain. Trump said Russia and Ukraine would start peace talks after he spoke Monday with Russian President Vladimir Putin, while the EU formally adopted a new round of Russia sanctions Tuesday. A source briefed on US participation maintained that all options remain regarding sanctions, but these should be aimed at outcomes like the peace process.
The Sun
21-05-2025
- Business
- The Sun
G7 Finance Talks Focus on Ukraine, Tariffs & Economy
BANFF: Top finance leaders from the G7 group of nations gathered in Canada for talks beginning Tuesday, with the war in Ukraine and economic turmoil unleashed by US President Donald Trump's tariffs at the top of minds. In meetings through Thursday, leaders will discuss global economic conditions and seek a common position on Ukraine, whose representatives have been invited to attend. Ukraine's presence 'sends a strong message to the world' that members are recommitting to support the country against Russia's invasion, Canadian Finance Minister Francois-Philippe Champagne told reporters Tuesday. 'We're also going to talk about what we're going to be doing in terms of reconstruction,' he said in a joint press conference with Ukrainian counterpart Sergii Marchenko. The talks in Canada's western province of Alberta come amid an uncertain approach among the G7 democracies towards Ukraine following Trump's return to power. Once broadly unified, the G7 -- Britain, Canada, France, Germany, Italy, Japan and the United States -- has been rattled by Trump, who reached out to Russia and slapped tariffs on both allies and competitors. Marchenko said he would seek during the meetings to reiterate Ukraine's position on the need for more pressure on Russia. 'Constructive' spirit While Trump's levies are not formally on the agenda, a Canadian official told reporters that 'trade and tariffs will be embedded in the discussion on the global economy.' Economists warn tariffs could fuel inflation and weigh on growth, and the effects of US trade policy loom over Treasury Secretary Scott Bessent's engagements. Asked about talks with Bessent, Champagne said Tuesday that despite tension around tariffs, both sides are looking to coordinate actions and tackle concerns including excess industrial capacity, non-market practices and financial crimes. 'The spirit around the table is constructive,' he said. A source briefed on US participation expects China's excess industrial capacity to be discussed, with members sharing concerns on the issue. A Japanese official told AFP its finance minister plans for a meeting with Bessent, seeking to address topics like foreign exchange. While the grouping discusses policies and solutions to issues like trade, security and climate change, analysts warned of unpredictability this time amid internal tensions. 'A test' The gathering in picturesque Banff will be 'a test or signal' of the G7's ability to agree on a final statement,' a French finance ministry official told reporters Tuesday. Although Canada's presidency hopes to issue a communique, this outcome must reflect 'a shared understanding of the global economic situation and common goals in addressing the challenges,' the official said. 'We will not be able to accept language that is completely watered down.' The source briefed on US participation said Washington is not inclined to 'do a communique just for the sake of doing a communique,' noting a consensus should align with Trump administration priorities too. German Finance Minister Lars Klingbeil warned Tuesday that trade disputes with the United States should be resolved as soon as possible. In comments before meeting his counterparts, Klingbeil said tariffs and uncertainties are a burden on the economy and job security. Trump has slapped a blanket 10 percent tariff on most US trading partners, threatening higher rates on economies including the European Union and sending jitters through the world economy. Officials told AFP they are not expecting trade agreements this week, but said the gathering is another chance to find common ground. But the issue of sanctions on Russia remains uncertain. Trump said Russia and Ukraine would start peace talks after he spoke Monday with Russian President Vladimir Putin, while the EU formally adopted a new round of Russia sanctions Tuesday. A source briefed on US participation maintained that all options remain regarding sanctions, but these should be aimed at outcomes like the peace process.
The Sun
21-05-2025
- Business
- The Sun
Canada sent 'strong message' with Ukraine at G7 finance talks
BANFF: Canada sought to send a firm message with a Ukrainian minister's presence at the start of a G7 finance leaders gathering Tuesday, where war in Ukraine and economic turmoil from US President Donald Trump's tariffs remain top of mind. In meetings through Thursday, leaders will discuss global economic conditions and seek a common position on Ukraine. Ukrainian Finance Minister Sergii Marchenko's presence 'sends a strong message to the world' that members are recommitting to support the country against Russia's invasion, Canadian Finance Minister Francois-Philippe Champagne told reporters Tuesday. 'We're also going to talk about what we're going to be doing in terms of reconstruction,' he said in a joint press conference with Marchenko. The talks in Canada's western province of Alberta come amid an uncertain approach among the G7 democracies towards Ukraine following Trump's return to power. Once broadly unified, the G7 -- Britain, Canada, France, Germany, Italy, Japan and the United States -- has been rattled by Trump, who reached out to Russia and slapped tariffs on both allies and competitors. But Champagne told AFP in an interview that he was cautiously optimistic ahead of meetings despite trade turmoil. He stressed that 'everyone wins' when trade rules are 'fair and predictable,' adding that Canada can serve as a bridge among members in a turbulent time. Marchenko said he would seek during the meetings to reiterate Ukraine's position on the need for more pressure on Russia. 'Constructive' spirit While Trump's levies are not formally on the agenda, a Canadian official told reporters that 'trade and tariffs will be embedded in the discussion on the global economy.' Economists warn tariffs could fuel inflation and weigh on growth, and the effects of US trade policy loom over Treasury Secretary Scott Bessent's engagements. Asked about talks with Bessent, Champagne said Tuesday that despite tension around tariffs, both sides are looking to coordinate actions and tackle concerns including excess industrial capacity, non-market practices and financial crimes. 'The spirit around the table is constructive,' he said. A source briefed on US participation expects China's excess industrial capacity to be discussed, with members sharing concerns on the issue. A Japanese official told AFP its finance minister plans for a meeting with Bessent, seeking to address topics like foreign exchange. While the grouping discusses policies and solutions to issues like trade, security and climate change, analysts warned of unpredictability this time amid internal tensions. 'A test' The gathering in picturesque Banff will be 'a test or signal' of the G7's ability to agree on a final statement, a French finance ministry official told reporters Tuesday. Although Canada's presidency hopes to issue a communique, this outcome must reflect 'a shared understanding of the global economic situation and common goals in addressing the challenges,' the official said. 'We will not be able to accept language that is completely watered down.' The source briefed on US participation said Washington is not inclined to 'do a communique just for the sake of doing a communique,' noting a consensus should align with Trump administration priorities too. German Finance Minister Lars Klingbeil warned Tuesday that trade disputes with the United States should be resolved as soon as possible. In comments before meeting his counterparts, Klingbeil said tariffs and uncertainties are a burden on the economy and job security. Trump has slapped a blanket 10 percent tariff on most US trading partners, threatening higher rates on economies including the European Union and sending jitters through the world economy. Officials told AFP they are not expecting trade agreements this week, but said the gathering is another chance to find common ground. But the issue of sanctions on Russia remains uncertain. Trump said Russia and Ukraine would start peace talks after he spoke Monday with Russian President Vladimir Putin, while the EU formally adopted a new round of Russia sanctions Tuesday.
