Banff (Canada) (AFP) – G7 finance ministers said Thursday that the economic policy uncertainty that has swept the globe was easing, promising further progress towards stability as they wrapped up talks in western Canada. US President Donald Trump’s wide-ranging tariffs have caused uncertainty in international commerce, and this week’s meeting was seen as a key test of whether the Group of Seven advanced economies could overcome tensions triggered by Trump’s trade war.
Leaders at the talks, which included central bank governors, conceded that the discussions faced challenges, including continuing disagreement over tariffs. However, in a final communique, the G7 – comprising Britain, Canada, France, Germany, Italy, Japan, and the United States – stated: “We acknowledge that economic policy uncertainty has declined from its peak, and we will work together to achieve further progress.” The meeting’s host, Canadian Finance Minister Francois-Philippe Champagne, characterized the gathering as “constructive and productive” and emphasized the need “to reduce uncertainty in order to increase growth.”
US Treasury Secretary Scott Bessent, who attended the talks at Banff National Park in the Canadian Rocky Mountains, faced consistent pushback on Trump’s tariffs, which many fear will drag down global economic growth. “Obviously, tariffs are on all of our minds,” Bank of Canada Governor Tiff Macklem told reporters at a closing press conference. “The communique highlights that we were pleased to see that uncertainty has come down, but we clearly have more work to do,” he added.
German Finance Minister Lars Klingbeil told reporters Thursday that it was crucial to “resolve the current trade disputes as quickly as possible,” as tariffs had placed “a heavy burden on the global economy.” “Our hand is extended,” Klingbeil added, noting that US tariffs threaten jobs and economic strength on both sides of the Atlantic. French Finance Minister Eric Lombard told AFP: “The atmosphere was warm. We spoke as friends and allies. We don’t agree on everything, but we talked about everything,” he said.
Ukrainian Finance Minister Sergii Marchenko attended the talks in Banff and urged the G7 to maintain pressure on Russia. In their final communique, the G7 finance leaders agreed to “maximize pressure” on Russia, including through further sanctions, if it resists efforts towards a ceasefire. “If such a ceasefire is not agreed, we will continue to explore all possible options, including options to maximize pressure such as further ramping up sanctions,” the communique stated.
Diplomatic efforts to end the conflict have stepped up in recent weeks, with Russian and Ukrainian officials holding their first face-to-face talks in more than three years last week in Istanbul. However, the Kremlin said Thursday that new peace talks with Ukraine had “yet to be agreed,” disputing reports that the two nations would soon hold negotiations at the Vatican. Trump spoke with Russian counterpart Vladimir Putin on Monday in a call aimed at ending the “bloodbath,” but neither his contact nor the earlier talks in Istanbul resulted in Russia offering any concessions.
France’s Lombard welcomed “clear progress” on support for Ukraine. While Trump’s return has rattled the G7, German Finance Minister Klingbeil told public broadcaster ARD that “there are always conflicting signals.” While there may be US statements that cast doubt on the extent of support towards Ukraine, “in the end, the United States has always been on Ukraine’s side,” he stated.
In an additional step on Ukraine, the G7 communique condemned “Russia’s continued brutal war” and stated that any entity that supported Russia during the conflict would be barred from Ukrainian reconstruction contracts. “We agree to work together with Ukraine to ensure that no countries or entities, or entities from those countries that financed or supplied the Russian war machine, will be eligible to profit from Ukraine’s reconstruction,” it said.
© 2024 AFP
