Latest news with #FinanceMinisters
Asharq Al-Awsat
23-05-2025
- Business
- Asharq Al-Awsat
G7 Glosses over Tariffs, Pledges to Cut Global Economic Imbalances
Finance ministers and central bank governors from the Group of Seven democracies papered over their differences on Thursday, pledging to tackle "excessive imbalances" in the global economy and saying they could increase sanctions on Russia. There had been doubt before the meeting whether it would issue a final communique, in light of divisions over US tariffs and Washington's reluctance to refer to Russia's war on Ukraine as illegal. But after three days of talks, participants signed on to a lengthy document devoid of previous language on fighting climate change and which also 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 officials, who met in the Canadian Rocky Mountains, called 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 United States and other G7 economies to non-market policies and practices are often targeted at its state subsidies and export-driven economic model. The G7 statement omitted mention of US President Donald Trump's tariffs that are disrupting global trade and supply chains and swelling economic uncertainty. Champagne downplayed the lack of communique language on tariffs, but said ministers "were not skating around" the issue and had discussed its impact. Canada seeks a deal to eliminate Trump's tariffs of 25% on many goods, such as steel and aluminum. "We're trying to enhance growth and stability," he added. "And obviously tariffs are something in that context that you can't avoid discussing." The gathering sets the stage for a summit of G7 leaders from June 15 to 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," the grouping said. It 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 exemption for packages of value less than $800 has been exploited by Chinese e-commerce companies, such as Shein and Temu. The Chinese embassy in Ottawa said it could not immediately comment on the G7 statement. 'BRUTAL' WAR The G7 finance chiefs condemned what they called Russia's "continued brutal war" against Ukraine and said if ceasefire efforts failed, they would explore all possible options, including "further ramping up sanctions." The description of the Ukraine war was watered down from October's G7 statement, before Trump's re-election, calling it an "illegal, unjustifiable, and unprovoked war of aggression against Ukraine." Trump has diminished US support for Ukraine and suggested 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 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 price cap of $60 a barrel on Russian oil exports, since Russian crude is now selling below that. But the plan was not mentioned in the communique, partly because US Treasury Secretary Scott Bessent was not convinced 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 US Treasury spokesperson said only that Bessent's G7 engagements "were both pleasant and constructive, and we look forward to our future engagements with all of our G7 partners on issues of mutual interest." Bessent came to Banff to the relief of many participants after he skipped a G20 finance meeting in February in the South African city of Cape Town. G7 officials described his interactions as "constructive" and "flexible" and said some initial stiffness 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 US Treasury secretary at the G7 meeting, holding no news conference and largely operating out of sight of the press. "I had a very productive day," he told a reporter on Wednesday, in his only public comment to the media.
South China Morning Post
22-05-2025
- Business
- South China Morning Post
G7 targets ‘excessive imbalances' in global economy, eyes de minimis exemption
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 US 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. '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 US and other G7 economies to non-market policies and practices often are targeted at China's state subsidies and export-driven economic model.
New York Times
22-05-2025
- Business
- New York Times
G7 Finance Ministers Show Unity in Support of Ukraine Against Russia
Top economic policymakers from the United States and other advanced economies agreed on Thursday to continue to support Ukraine and warned Russia of additional sanctions if there was no progress on peace, demonstrating a rare show of unity despite festering tension over tariffs and trade. Finance ministers and central bankers of the Group of 7 nations continued to blame Russia for the war in Ukraine, despite some initial resistance from the United States, and pledged to provide resources to help Kyiv sustain its economy and pay for its reconstruction. Officials also discussed tightening the price cap that they enacted on Russian oil exports as a measure to further squeeze Russia's economy. 'We condemn Russia's continued brutal war against Ukraine and commend the immense resilience from the Ukrainian people and economy,' they said in a joint statement, or communiqué. 'The G7 remains committed to unwavering support for Ukraine in defending its territorial integrity and right to exist, and its freedom, sovereignty and independence toward a just and durable peace.' The statement added that if a cease-fire is not reached, 'we will continue to explore all possible options, including options to maximize pressure such as further ramping up sanctions.' The agreement on Ukraine culminated after three days of meetings in Banff, Canada, the mountain resort where officials also discussed the risks to the global economy, confronting the threat of China's excess industrial capacity and sanctions policy. The united stance on Ukraine came despite mixed signals from President Trump, who has both threatened Russia with tougher sanctions and indicated a willingness to walk away from Ukraine and open trade ties with Moscow. The language about Russia in the statement had a softer tone compared with a year ago, when G7 finance ministers assailed Russia's 'illegal, unjustifiable, and unprovoked full-scale invasion of Ukraine.' During the Biden administration, the U.S. led the development of a policy to use sanctions to cap the price of Russian oil at $60 per barrel. European officials put forward a proposal at the meetings to lower that to $50 per barrel, but no decisions were announced on the future of the cap. The position on Ukraine came despite deep division among finance officials over Mr. Trump's aggressive approach to trade. The president's decision to slap tariffs on both allies and adversaries has fractured the global economy and created significant uncertainty, increasing the likelihood of a global downturn. Still, the statement on trade was more muted, generally referencing a desire to address economic 'imbalances' without making a direct reference to concerns about the Trump tariffs. 'International organizations signaled at our last meeting that trade and economic policy uncertainty was high and weighing on global growth,' they wrote in the joint statement. 'We acknowledge that economic policy uncertainty has declined from its peak, and we will work together to achieve further progress.' Since taking office, Mr. Trump has upended the global trading system with a blizzard of tariffs. He imposed a 10 percent universal tax on almost every trading partner, in addition to 25 percent tariffs on imported steel, aluminum, cars and car parts. He raised tariffs on China to a punishing 145 percent in April before reducing them to 30 percent this month to allow Beijing and Washington to negotiate a trade deal. In April, Mr. Trump suggested severing economic ties with Canada, which is hosting the meetings this year, when he declared, 'We don't need anything' from America's northern neighbor. Mr. Trump has also repeatedly said that he wants to annex Canada and make it America's 51st state. The G7 meetings were the first international summit for Treasury Secretary Scott Bessent, who skipped a Group of 20 gathering in South Africa in February amid the Trump administration's opposition to that nation's land policy. The finance officials raised their concerns with Mr. Bessent over the U.S. tariffs but they did not engage in direct negotiations over trade and there were no announcements of new deals. 'Definitely there will always be tension around tariffs,' said François-Philippe Champagne, the Canadian finance minister, who noted that Canada was America's biggest export market. 'It's quite normal when you meet your biggest customer, that there's a lot to discuss.' Although the U.S. tariffs pose a major threat to the global economy, policymakers appeared to tread carefully in how they raised their displeasure in an effort to avoid provoking Mr. Trump. 'From the E.U. side, we still see, as always, tariffs creating negative economic effects for the E.U., for the U.S., for the global economy in general,' said Valdis Dombrovskis, the European commissioner responsible for the European Union's economy. 'The U.S. administration is having a somewhat different view or reading of the situation.' Trade uncertainty from Mr. Trump's tariffs has been weighing on Europe. In its spring economic forecast, the European Commission, the trade bloc's administrative arm, said this week that it expected the gross domestic product of the 20 countries using the euro to grow just 0.9 percent in 2025, down from the 1.3 percent that had been forecast last fall. Despite the concern over trade, G7 officials tried to emphasize on areas of agreement instead of focusing solely on flash points. Mr. Champagne said that his meetings with Mr. Bessent were constructive and cordial. 'We get along very well together,' Mr. Champagne said during his closing news conference. For his part, Mr. Bessent maintained a low profile at the meetings. He decided against delivering a public speech or holding a news conference, as Treasury secretaries traditionally do at such a summit. 'I had a very productive day,' Mr. Bessent said on Wednesday evening as he got into a car to join his G7 counterparts for a dinner atop Sulphur Mountain.
CTV News
22-05-2025
- Business
- CTV News
G7 finance ministers to wrap up summit in Banff
Finance ministers and central bankers from the G7 are gathering in Banff to lay the groundwork for the G7 Summit in Kananaskis. Rachel Aiello has the latest.
Bloomberg
22-05-2025
- Business
- Bloomberg
Germany Says G-7 Finance Chiefs Agree Continued Ukraine Support
Finance ministers from the Group of Seven industrialized nations have agreed to continue backing Ukraine in its defense against Russia's invasion, German Finance Minister Lars Klingbeil said on the sidelines of a G-7 meeting in Canada. 'It became clear that within the G-7 format, support will continue unchanged, and that Ukraine can rely on strong solidarity and substantial support from the G-7 countries,' Klingbeil said Wednesday in the mountain village of Banff.
