At 50, G7 needs to reinvent its priorities
Trade and international security are set to dominate the agenda for the Group of 7 (G7) Summit that began in the remote Canadian town of Kananaskis on Sunday. The leaders of Canada, France, Germany, Italy, Japan, the US and the UK are meeting days after conflict broke out between Iran and Israel, which has sparked fears of an all-out war, and less than a month before the July 9 deadline set by
At 50, G7 needs to reinvent its priorities
Trade and international security are set to dominate the agenda for the Group of 7 (G7) Summit that began in the remote Canadian town of Kananaskis on Sunday. The leaders of Canada, France, Germany, Italy, Japan, the US and the UK are meeting days after conflict broke out between Iran and Israel, which has sparked fears of an all-out war, and less than a month before the July 9 deadline set by the Donald Trump administration for imposing higher tariffs on dozens of countries. Trump’s approach to tariffs has already led to concerns about the weakest decade of economic growth since the 1960s. Trump has had a stormy relationship with the G7, walking out in a huff and refusing to endorse the final communique at the 2018 summit, citing what he termed “false statements” made by then Canadian Prime Minister Justin Trudeau at a press conference and differences with Canada over tariffs levied by the latter on specific US goods. Leaders of G7 member-States and other countries attending the outreach session on June 17, such as India, Australia, Brazil, Mexico, South Korea and Ukraine, will be hoping for greater clarity on Trump’s thinking on economic issues during their interactions.
In its 50th year, this group of Western economies — Japan being the only exception — is clearly in need of a reset for various reasons. It has lost its dominance over the world economy — slipping from a 60% share of global GDP two decades ago to 44% — alongside the rise of China. The onerous task before the G7 is recalibrating the bloc’s priorities in a Trumpian world, at a time when China and India are leading global growth. With G7 member-States themselves cutting separate trade deals with Trump, bilateralism has become the de facto policy option, and it remains to be seen if a grouping such as G7 can retain its clout in its present form.
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