BY DAVID LAWDER, PROMIT MUKHERJEE AND JULIA PAYNE
BANFF, Alberta—Finance ministers and central bank governors from the Group of Seven democracies papered over their differences on Thursday, pledging to tackle “excessive imbalances” in the global economy and saying they could increase sanctions on Russia.
There had been doubt before the meeting whether it would issue a final communique, in light of divisions over US tariffs and Washington’s reluctance to refer to Russia’s war on Ukraine as illegal.
But after three days of talks, participants signed on to a lengthy document devoid of previous language on fighting climate change and which also softened references to the Ukraine war.
“We found common ground on the most pressing global issues that we face,” Canadian Finance Minister Francois-Philippe Champagne told the closing press conference.
“I think it sends a very clear signal to the world … that the G7 is united in purpose and in action.”
The officials, who met in the Canadian Rocky Mountains, called for a common understanding of how “non-market policies and practices” undermine international economic security.
The document did not name China, but references by the United States and other G7 economies to non-market policies and practices are often targeted at its state subsidies and export-driven economic model.
The G7 statement omitted mention of US President Donald Trump’s tariffs that are disrupting global trade and supply chains and swelling economic uncertainty.
Champagne downplayed the lack of communique language on tariffs, but said ministers “were not skating around” the issue and had discussed its impact. Canada seeks a deal to eliminate Trump’s tariffs of 25 percent on many goods, such as steel and aluminum.
“We’re trying to enhance growth and stability,” he added. “And obviously tariffs are something in that context that you can’t avoid discussing.”
The gathering sets the stage for a summit of G7 leaders from June 15 to 17 in the nearby mountain resort area of Kananaskis. Trump will attend the summit, the White House confirmed on Thursday.
The G7 communique called for an analysis of market concentration and international supply chain resilience.
“We agree on the importance of a level playing field and taking a broadly coordinated approach to address the harm caused by those who do not abide by the same rules and lack transparency,” the grouping said.
It also recognized an increase in low-value international “de minimis” package shipments that can overwhelm customs and tax collection systems and be used for smuggling drugs and other illicit goods.
The duty-free exemption for packages of value less than $800 has been exploited by Chinese e-commerce companies, such as Shein and Temu.
The Chinese embassy in Ottawa said it could not immediately comment on the G7 statement.
The G7 finance chiefs condemned what they called Russia’s “continued brutal war” against Ukraine and said if ceasfire efforts failed, they would explore all possible options, including “further ramping up sanctions.”
The description of the Ukraine war was watered down from October’s G7 statement, before Trump’s re-election, calling it an “illegal, unjustifiable, and unprovoked war of aggression against Ukraine.”
Trump has diminished US support for Ukraine and suggested that Kyiv was to blame for the conflict as he tries to coax Russia into peace talks. – Reuters
