This is a victory for the French Presidency: the G7 countries committed themselves to the modernisation of the World Trade Organisation (WTO), in particular "to more efficiently protect intellectual property, solve disputes more quickly and stop unfair practices", in a joint declaration they adopted on Monday 26 August, at the end of the Biarritz Summit. This was a challenge, given the hostility of US President Donald Trump towards multilateralism on trade issues.
"It has been said on this page that it is good to have a trade organisation all together", French President Emmanuel Macron detailed, alongside the US President, who will take over the rotating presidency of the G7 next year.
"We have also collectively reaffirmed our willingness to change these trade rules to achieve our goals: they must be profoundly modernised, because all unfair situations to which our countries have sometimes been subjected to must be stopped", Mr Macron continued, stressing the existence of numerous regulatory barriers and massive violations of intellectual property, with reference to Chinese practices.
Status quo?
However, during the exchanges held on Sunday morning, 25 August, no real breakthrough in the discussions had been reported to us, with US President Donald Trump sticking to his positions.
While a consensus had emerged that China was a major problem for global economic and trade balance, the G7 countries remained divided on the method: Mr Trump is acting unilaterally by erecting offensive tariff barriers, while Europeans, Japan and Canada continue to argue for the maintenance and modernisation of the WTO, including through the reform of the WTO Appellate Body (see EUROPE B12304B26).
Trumpian Volte-face
In Biarritz, Mr Trump blew hot and cold. He sometimes said he had doubts ('second thoughts') about the trade war his country was waging against Beijing, a statement quickly denied by the US spokesperson. But he also mentioned the possibility of declaring a "national state of emergency" in response to China's unfair trade practices.
On Monday, 26 August, however, the tone of the US president changed. Following a possible announcement by China that trade negotiations would resume, President Trump praised Chinese leader Xi Jinping via Twitter for continuing talks between the two countries.
Bilateral agreements
Progress of varying importance was also made during the Summit on trade agreements.
On Monday, following a bilateral meeting, Mr Trump and German Chancellor Angela Merkel expressed their willingness to intensify negotiations between the European Union and the United States, even as the US President regularly threatens the EU with new customs duties, particularly on German cars and, more recently, on French wine (see other news).
The day before, Mr Trump and Japanese Prime Minister, Shinzō Abe, had concluded an "agreement-in-principle" covering the agricultural sector - citing in particular American wheat - and digital trade. A bilateral summit between the two countries is planned in the margins of the UN General Assembly at the end of September.
See the G7 Joint Statement: https://bit.ly/2Pasvh9 (Original version in French by Pascal Hansens)