G-7 Reaffirms Fight against Protectionism, But Rift Revealed

June 10, 2018

Charlevoix, Canada- The Group of Seven major industrial nations reaffirmed their fight against protectionism at a two-day summit in Charlevoix, eastern Canada, through Saturday, but a rift between the United States and other members deepened over trade issues, a key theme at the leaders' meeting.

"We acknowledge that free, fair and mutually beneficial trade and investment...are key engines for growth and job creation," the leaders said in a communique adopted at the meeting. "We underline the crucial role of a rules-based international trading system and continue to fight protectionism," the document said.

At a press conference, Japanese Prime Minister Shinzo Abe echoed the G-7 statement, saying, "The leaders agreed to make efforts to promote a free, fair and rules-based trading system."

"The G-7 leaders also confirmed that they will resolutely act against unfair trade and investment practices that distort markets," Abe added. Maintaining a free trade system is a goal of the G-7 nations, Abe said, adding, "The United States, as a member of the G-7 group, shares this value with us."

Over trade, Canada and European member countries criticized the United States' recently introduced additional steel and aluminum tariffs. Still, the G-7 leaders agreed to prioritize their cooperation to stabilize the global economy in their second-day talks, according to sources with access to the discussions.

U.S. President Donald Trump said on Twitter, however, that he has instructed staff of his administration "not to endorse" the G-7 communique, noting that the U.S. government is looking to impose tariffs on automobile imports "flooding the U.S. market."

It is very unusual for a G-7 leader to raise objections to a statement that has been adopted. Trump skipped the latter half of the second-day discussions of the G-7 summit and headed for Singapore, where he is set to meet with North Korean leader Kim Jong Un on Tuesday.

With the division between the United States and other G-7 members widening, it will be inevitable for the forum to see its presence fall further, analysts said.

Meanwhile, the leaders of Britain, Canada, France, Germany, Italy, Japan and the United States plus the European Union urged North Korea to "completely, verifiably and irreversibly dismantle all of its weapons of mass destruction and ballistic missiles as well as its related programs and facilities."

At the summit, Trump obtained support from his G-7 colleagues for the success of his Singapore meeting with Kim, which will be the first-ever summit between the United States and North Korea.

In the communique, the G-7 leaders called on North Korea to "immediately" resolve the issue of its past abductions of Japanese and other nationals, as proposed by Abe.

The communique also asked all states to "maintain strong pressure" on North Korea, including through the full implementation of relevant U.N. Security Council sanctions resolutions, to make the country "change its course and take decisive and irreversible steps."

The communique showed the G-7 countries' resolve to deter Iran's nuclear weapons development, as uncertainties grew over the landmark 2015 nuclear deal between Tehran and major powers following the United States' recent announcement of its intention to withdraw from the pact.

"We are committed to permanently ensuring that Iran's nuclear program remains peaceful," it said, while condemning "all financial support of terrorism including terrorist groups sponsored by Iran."

The communique stopped short of including Russia's return to the forum of the world's major powers, despite a proposal by Trump.

Apparently referring to China's growing maritime assertiveness, the G-7 communique said that the leaders "remain concerned about the situation in the East and South China Seas and reiterate our strong opposition to any unilateral actions that could escalate tensions and undermine regional stability and the international rules-based order."

The document called for the start of negotiations this year to develop "stronger international rules on market-distorting industrial subsidies and trade-distorting actions by state-owned enterprises," also keeping in mind China, which has been criticized as a source of overproduction of steel and for its unfair trade mechanism.

At the G-7 leaders' discussions on gender equality on the second day of the summit, Abe announced that Japan will contribute 200 million dollars to assist education for women in developing countries.

Women in developing nations need to play active roles, Abe said, underscoring that Japan will offer high-quality educational support for girls and women. Projects using the pledged aid will be decided later. Jiji Press