At a meeting in the Canadian Rockies, finance ministers from the Group of Seven leading industrialized democracies (G7) made efforts to reduce tensions caused by new tariffs by US President Donald Trump and strengthen cooperation within the format. Despite serious disagreements, delegates are seeking to reach consensus on key global issues beyond tariff policy, Reuters reports, reports News.bg.
The meeting in Banff, Alberta, focused on creating a joint communiqué covering support for Ukraine, the fight against financial crimes and drug trafficking, as well as a response to non-market economic practices, especially by China.
US Treasury Secretary Scott Besant described the day as "very productive" and highlighted the positive atmosphere in the bilateral meetings. A representative of the French Finance Minister, Eric Lombard, also noted a “visible improvement in mood“ and “a sincere, honest dialogue between allies“.
Memories of 2018 and efforts for compromise
Despite the improved tone, the memory of the 2018 meeting, when disagreements on customs policy led to the designations as “G-6 + 1“, weighs over the form. Now diplomats report a real attempt to reach a compromise by the US, although Trump's new tariffs are even more comprehensive.
Disagreements over Ukraine and Russia
A major source of tension remains the wording in the communiqué on the war in Ukraine. According to European sources, Washington has demanded the removal of the term "illegal invasion of Russia", which has caused serious objections from the allies.
Italy has proposed that countries that economically supported Russia during the war be excluded from the post-war reconstruction of Ukraine - a position that coincides with Besent's statements from the previous month.
In addition, delegates are discussing the possibility of lowering the ceiling of $ 60 per barrel for Russian crude oil, as part of the new - 18th in a row - package of EU sanctions against Moscow. "We are waiting for a tough conversation on the price ceiling", said a European representative.
Besent - a signal for dialogue
The presence of Scott Besent at the meeting, after missing the previous G-20 format in South Africa, was taken as a sign of a desire for more active dialogue. European delegations described him as "flexible" and willing to compromise.
However, a US representative specified that the US would not sign a communiqué that did not include its main priorities, including stricter measures against Chinese subsidies and overcapacity.
Besent held a number of bilateral meetings with the ministers of France, Germany, Canada and Japan. German Minister Lars Klingbeil even accepted an invitation for a new meeting in Washington.
Risk of trade escalation
Fears of a new trade war remain. Japan, Germany, France and Italy face the risk of doubling US tariffs to 20% or more as early as July. The UK managed to negotiate a partial trade agreement, but is still subject to a 10% tariff on most of its exports. Canada, despite hosting the meeting, continues to suffer from separately imposed 25% tariffs by the United States.