Banff (Canada) (AFP) – G7 finance leaders exchanged pleasantries before tough discussions Wednesday, seeking to restore stability in the face of economic turbulence from US President Donald Trump’s tariffs and strengthen support for Ukraine. The gathering of finance ministers and central bank governors from the Group of Seven nations in Canada is seen as a test of cohesion among the advanced economies, as Trump’s trade policies threaten to drag down economic growth.
Once broadly aligned, the grouping — comprising Britain, Canada, France, Germany, Italy, Japan, and the United States — could struggle for unity amid the upheaval caused by Trump’s trade wars. The US president has spoken often of annexing its neighbor Canada, which holds the G7 presidency this year. But the mood was cordial early Wednesday as leaders came together for a group photograph at a welcome ceremony against a mountainous backdrop in Banff, in the western province of Alberta.
US Treasury Secretary Scott Bessent exchanged greetings with Japanese Finance Minister Katsunobu Kato on the podium, and both sides are expected to meet on currency issues and other topics. Bessent’s counterparts are seeking common ground and a lowering of temperatures with the United States on trade, while sources briefed on US participation said Bessent is likely to raise issues like China’s non-market practices and excess industrial capacity. The G7 is also expected to discuss potential fees on low-value imports from China.
“Let’s go to work,” Canadian Finance Minister Francois-Philippe Champagne declared as leaders headed into meetings, including sessions on the global economy and the war in Ukraine. The gathering of G7 finance leaders runs from Tuesday through Thursday. Champagne told at a press briefing Tuesday that Ukrainian Finance Minister Sergii Marchenko’s presence in Banff “sends a strong message to the world” that members are recommitting to support the country against Russia’s invasion. Marchenko told reporters he would seek during the gathering to reiterate Ukraine’s position on the need for further pressure on Russia.
– ‘Stability and growth’ –
On Wednesday, Champagne opened a bilateral meeting with French Finance Minister Eric Lombard, noting both sides’ “almost perfect alignment” in visions. “We’re all about restoring stability to trade between the G7 countries, but we’re also talking about growth,” Champagne said. Lombard, in turn, noted the “quality of dialogue” with Canada, saying “that’s what we need in the world.” “We’re optimistic about what we can do together,” he added in opening remarks.
Champagne stressed a day prior that “everyone wins” when trade rules are “fair and predictable,” expressing his belief that Canada can serve as a bridge among members in a turbulent time. On Bessent and the pressures from US trade policy, Champagne told reporters that colleagues are eager to speak with the US Treasury chief and discuss how everyone can work together. This week, all eyes will be on whether the G7 can find common wording despite their differences.
A French official earlier said that although Canada’s presidency hopes to issue a communique, France would not accept “watered down” language. A source briefed on US participation said a consensus should align with Trump administration priorities as well. “It is a significant G7 existentially,” said Ananya Kumar, a deputy director at Washington-based think tank the Atlantic Council. “I don’t think in any of the past years, people have questioned the US’s relationship with the other G7 member states as much as they have in the last 100 days,” she told AFP ahead of the gathering. “The big theme is going to be how do we prevent global instability, how do we find consensus in this chaos?”
© 2024 AFP
