On Thursday 22 May in Banff (Canada), the Finance Ministers of the G7 countries adopted a joint Communiqué in which they “condemned” Russia’s military aggression against Ukraine and pledged to work to reduce the macroeconomic “uncertainty” caused by international trade tensions.
Hosting the meeting, Canadian Minister François-Philippe Champagne welcomed the active participation of his American counterpart Scott Bessent, saying that the adoption of the joint Communiqué demonstrated the G7 countries’ willingness to cooperate.
In their Communiqué, the Ministers acknowledge that “economic policy uncertainty has declined from its peak” in early April, when US President Donald Trump imposed tariffs on a number of trading partners, including the EU (see EUROPE 13613/2). They have pledged to work together to “achieve further progress” during the 90-day negotiating period decreed by the US President.
On Friday, President Trump threatened to impose tariffs of up to 50% on imports from the EU from June onwards, statements likely to rekindle economic uncertainty (see other news). The G7 Summit, to be held in Canada from 15 to 17 June, could prove to be a high point in the trade negotiations between the EU and the United States.
The G7 Ministers also expressed their “concerns over unsustainable global macro imbalances”. These include non-market policies and practices (NMPPs) that “aggravate imbalances, contribute to overcapacity, and impact the economic security of other countries”, a veiled reference to Chinese measures aimed at protecting its markets and stimulating its industry. The Ministers advocate a coordinated approach to “address the harm caused by those who do not abide by the same rules and lack transparency”.
Ukraine. Mr Champagne noted that the G7 countries had reiterated their support for Ukraine in the face of “Russia’s illegal invasion, including ramping up sanctions if necessary” if the two warring countries fail to reach a ceasefire.
See the G7 Communiqué: https://aeur.eu/f/h0u (Original version in French by Mathieu Bion)