Banff (Canada) (AFP) – 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.
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.
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.
© 2024 AFP
