It was not without pain, due to the differences on protectionism between Donald Trump’s US administration and the other governments, that the G7 countries (France, Germany, Italy, the UK, Canada, Japan and the USA) reached agreement, at the G7 summit in Taormina, Italy, on Friday 26 and Saturday 27 May, on a united message in support of free trade and the multilateral trading system, underlining their firmness against unfair trade.
The final declaration, which was the subject of bitter bargaining, reaffirms the commitment of the G7 countries to keeping their markets open and to fighting protectionism, and underlines their firm stance against all unfair trade practices. Aware of shortcomings in a globalisation that has not been of benefit to all, they also commit to adopting more inclusive policies.
In a message implicitly addressed to China and other emerging economies, the G7 countries assert that they will push for the removal of all trade distortion practices, including dumping, discriminatory non-tariff barriers, forced technology transfers, and subsidies and state support that distort markets.
In this context, the G7 countries committed to strengthening their cooperation and to working with other countries to respond to global overcapacity in steel, aluminium and other sectors, underlining their concern about measures aimed at promoting key technologies that generate distortion. Hailing the G20’s establishment of the world forum on overcapacity in steel, the G7 countries nevertheless called on the members of the forum to deliver solutions that strengthen the adjustment of the market by tackling the deep-rooted causes of overcapacity quickly.
Showing that they were united about the importance of the international rules-based trading system, the G7 countries committed to working together to improve the way the WTO works and to ensure the full, transparent and effective implementation of all WTO rules by all the organisation’s members, and the success of the next WTO conference in Buenos Aires.
The G7 also committed to fighting for better application and better promotion of internationally recognised social and environmental standards, as well as labour standards and those on tax cooperation in the whole global economy and its supply chains.
In addition, the G7 countries agreed on the need to support a predictable climate in order to facilitate direct foreign investment. (Original version in French by Emmanuel Hagry)