G7 finance ministers and central bank governors agreed on critical issues of the global economy over a three-day meeting in Canada, pledging to address “excessive imbalances” and look into tightening Russia sanctions.
Regardless of previous doubts whether the grouping would issue a joint statement under tensions over US tariffs and divergent approaches to Russia’s invasion of Ukraine the officials wrapped up the meeting by signing a general statement.
Canadian Finance Minister François-Philippe Champagne welcomed the result, noting that the G7 had reached “common ground” and was “unified in purpose and action.”
The statement pointed out the danger of “non-market policies and practices” that erode economic security globally. China, although not being mentioned by name, was widely understood to be targeted by the reference to state-led economic strategy, subsidies, and export-led policy.
The G7 ministers also urged further examination of the concentration of global markets and the resilience of international supply chains. They also highlighted the importance of ensuring a level playing field and coordinated action against economic players with less transparency or compliance with the world’s rules.
On the Ukraine crisis, the G7 denounced Russia’s “brutal war” and pondered additional sanction possibilities, such as potentially reducing the $60-per-barrel price cap on Russian oil. European Commission Vice President Valdis Dombrovskis said Russian crude is already being sold below that level. Still, an EU official said the US is not yet convinced about changing the cap.
The statement also said that any nation funding Russia’s conflict must be denied a role in post-war reconstruction in Ukraine. Russian sovereign property in G7 countries would remain frozen until Moscow stops fighting and pays reparations to Ukraine.
Other issues discussed were US tariffs and the increasing level of low-value global shipments, regularly abused by Chinese e-commerce titans such as Shein and Temu, which are challenges to customs enforcement and taxation.
