G-20 Summit starts in Osaka; trade seen high on agenda

June 28, 2019

By Hiroki Kosuge

Osaka--The Group of 20 advanced and emerging economies kicked off their two-day summit in the western Japan city of Osaka on Friday.

A focal point is whether and to what extent the G-20 leaders will be able to agree on the importance of free trade at a time when the global economy has been shaken by fierce trade friction between the United States and China.

Japan, serving as the host of the G-20 summit for the first time, is expected to call for international cooperation to include a pledge to promote free trade in a joint declaration that will be adopted to wrap up the meeting Saturday.

Last year's G-20 summit in Argentina failed to include a commitment to fighting protectionism in its joint statement for the first time since the G-20 summit framework started in 2008, due to opposition from the administration of U.S. President Donald Trump.

This time again, Washington is expected to reject any use of such language in the planned joint declaration.

Trump and Chinese President Xi Jinping are scheduled to hold a bilateral meeting on Saturday.

The world is closely watching whether the leaders of the two economic superpowers will agree on a truce in their escalating trade war.

Ahead of the launch of the G-20 discussions, Prime Minister Shinzo Abe said that he hopes to "realize a beautiful harmony by obtaining cooperation from the leaders."

On Friday, the G-20 leaders are slated to discuss ways to respond to the U.S.-China trade war and reform the World Trade Organization, as well as the digital economy.

Regarding the digital economy, Abe hopes to lead talks to launch the "Osaka track," an international framework for rules on cross-border data exchange.

A program for introducing digital taxation aimed at preventing tax avoidance by information technology giants, which was endorsed by the G-20 finance ministers and central bank chiefs at their meeting in the southwestern Japan city of Fukuoka on June 8-9, is expected to be reflected in the Osaka summit talks.

Other key agenda items include technological innovation to combat global environmental issues, such as marine plastic waste. Jiji Press