Asheville (United States) (AFP) – Finance leaders from the Group of 20 major economies open talks Monday at a US-hosted gathering, with the Trump administration seeking to escalate economic pressure on Iran amid a renewed exchange of fire with Tehran. The gathering of G20 finance ministers and central bank governors takes place through Tuesday in the Blue Ridge Mountains city of Asheville, North Carolina. But the first exchange of attacks for a month between the United States and Iran in the Middle East loomed over the meetings as leaders convene early Monday.
Also clouding the talks are Trump’s tightening of trade barriers and questions on whether the grouping can still work together to address big economic challenges. Shortly before talks opened, the European Union urged “continued diplomatic efforts” to reach a peace settlement in the Middle East war, which has also seen Tehran virtually block off the Strait of Hormuz. The waterway is a crucial path of global energy transit, and its closure has caused oil prices to spike.
The G20 comprises 19 nations plus the EU and the African Union. It was established in the wake of the 1997-1998 Asian financial crisis to boost global economic and financial stability. The EU added that it welcomes efforts at ensuring Iran ceases its “destabilizing activities and engages in peace negotiations with good faith,” including through additional, US-led economic pressure. It pledged to work with international partners to maintain pressure on Tehran.
US Treasury Secretary Scott Bessent skipped last year’s meeting led by South Africa, which has been excluded from the group by the US. Washington holds the rotating presidency this year. Instead, US officials invited Poland to the table, although it is not a permanent G20 member. Brazil’s finance minister is shunning the gathering amid tensions with the Trump administration. A Russian representative is participating, too. A European official speaking on condition of anonymity expressed disapproval that Moscow — at war with Ukraine since its 2022 invasion — was not excluded.
Besides promoting economic growth, US priorities this year include dealing with “global imbalances” and sovereign debt challenges, a senior US Treasury official told reporters ahead of talks. G20 discussions will seek to ensure that economies avoid policies that push excess production and capacity into global markets, the official added. This echoes criticism of China’s excess industrial capacity, which critics say drives down prices and causes unfair competition.
“Those are difficult conversations to have,” Josh Lipsky of the Atlantic Council told AFP. He added that the US-Canada trade war weighs on unity among the Group of Seven advanced economies as countries broach tough topics in the wider grouping. G7 finance ministers are also expected to meet on the margins of the Asheville talks.
Certain reporters from major US newsrooms, including The New York Times and Bloomberg News, were not granted credentials to cover the gathering. Bloomberg News said the Treasury offered no explanation for rejecting its numerous accreditation requests. The Times said its economic policy reporter was excluded. Another Times reporter, covering Europe, was allowed access. A Treasury spokesperson said it plans to welcome nearly 300 media representatives from around a dozen countries. The official added that access to policymakers during the event comes with “a responsibility to report factual information consistent with established journalistic standards.” Coverage should not prioritize “clicks, engagement, or sensationalism,” the spokesperson said.
All eyes will be on bilateral meetings on the sidelines of the summit too, where Bessent is set to make direct appeals to counterparts as Washington pushes to isolate Iran economically. A Treasury official said Bessent will deliver a strong statement to the G20 to urge compliance with US sanctions if they want to continue operating in the dollar-based financial system. Business leaders will also be present at G20 discussions this year on barriers to investment, innovation, and productivity.
© 2024 AFP
