Asheville (United States) (AFP) – Finance leaders from the Group of 20 major economies open talks Monday at a US-hosted gathering, as the Trump administration seeks consensus on lifting global growth while ramping up economic pressure on Iran. The gathering of G20 finance ministers and central bank governors takes place Monday and Tuesday in the Blue Ridge Mountains city of Asheville, North Carolina.
But looming over the meetings are fallout from the US-Israeli war on Iran, a tightening of US trade barriers, and questions on whether the group can still work together to address key economic challenges. 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 economies avoid policies that push excess production and capacity into global markets, the official added. The official noted that some G20 partners have seen dumping on their shores while Trump raised US trade barriers — echoing criticism of China’s excess industrial capacity, which critics say drives down prices and causes unfair competition.
– ‘Difficult conversations’ –
“Those are difficult conversations to have,” Josh Lipsky of the Atlantic Council told AFP, referring to the issue of imbalances. He added that an ongoing 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.
But 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 it did not receive accreditation while the Times said its economic policy reporter was excluded. Another Times reporter, covering Europe, was allowed access. A Times spokesperson said this was “not just another disturbing effort by the administration to undermine independent journalism, but a blatant attempt to evade public scrutiny.”
A Treasury spokesperson said it plans to welcome nearly 300 media representatives from around a dozen countries, including a New York Times reporter and others including from NPR and the Washington Post. “Members of the media will have a high level of access to policymakers throughout the event, and with that access comes a responsibility to report factual information consistent with established journalistic standards,” the Treasury official added. 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.
On worries over higher Treasury bond yields, closely monitored as a proxy for interest rates, the official said interest costs are expected to cool as inflation eases over time. The G20 comprises 19 nations plus the European Union and the African Union. It was established in the wake of the 1997-1998 Asian financial crisis to boost global economic and financial stability.
© 2024 AFP
