In: Economics
what has been discussed during the latest summit of G7, which took place in August 2019 in France. What key issues were raised and why?
INTRODUCTION OF G7
The G7 Summit is the annual meeting of the Group of Seven leaders. It's hosted by the G7 president for that year. The summit doesn't have any legal or political authority. But when these seven world leaders agree on something, it has the power to shift the direction of global economic growth.
2019 Summit
France hosted the 2019 Summit at Biarritz on August 25 - 27,
2019. Its official focus was on fighting income and gender
inequality and protecting biodiversity. French
President Emmanuel Macron also used
the Summit to promote Europe as a global leader on several issues.
Most notable was a solution to the Amazon forest fires, which U.S.
President Donald Trump ignored. The G-7 promised $22 million to
fight the fires. German Chancellor Angela Merkel is nearing the end
of her term, and so did not provide much leadership. Macron got
Trump to soften on his trade war efforts. He also got him to
possibly agree to meet with Iranian President Hassan Rouhani.
DISCUSSION DURING THE G7 SUMMIT
President Donald Tusk represented the EU at the G7 summit, where leaders discussed global challenges such as Iran, trade tensions, the fight against inequalities and climate change. They also discussed the global issue of the wildfires in the Amazon. At the end of the summit, they adopted the G7 Leaders' Declaration.
The summit took place under the French presidency of the G7, which is centred around the fight against inequalities. With that goal in mind, the French G7 presidency has adjusted the format of the G7 to involve international partners and representatives of civil society.
The EU's priority during the summit was to defend the rules-based order and its organisations as the best approach to global governance.
Donald Tusk warned ahead of the summit that the meeting would be a difficult test of unity and solidarity for the free world and its leaders:
ISSUES OF G7 2019 RAISED BY MEMBERS
Trade
Leaders discussed the global economic outlook and issues related to trade tensions. They also talked about international taxation, especially on a coordinated approach to the issue of taxation in the digital sector.
Leaders exchanged views on how to safeguard the rules-based trading system and how to de-escalate current trade tensions. They also tasked the G7 finance ministers to closely monitor the state of the global economy.
The reform of the World Trade Organisation (WTO) was also on the agenda, following the commitment made at the G20 summit in Osaka to modernise the WTO.
The G7 committed to reaching in 2020 an agreement to simplify regulatory barriers and modernize international taxation within the framework of the OECD.
Africa
G7 leaders endorsed a new framework between the G7 and Africa. They worked together to find ways of cooperating with African partners to develop tools to support sustainable economic development across the continent. The results of the talks are reflected in the Biarritz Declaration for a G7 and Africa Partnership.
In addition, a specific G7 action plan on the Sahel was endorsed to improve development and security cooperation.
The EU also announced financial support for the African Development Bank's Affirmative Finance Action for Women in Africa (AFAWA) programme. The EU's contribution of over €85 million will help develop 100 000 businesses run by women.
Fighting against inequalities and women's empowerment
Leaders underlined the significance of women's participation in the labour market, and highlighted the importance of education for girls and women, especially in developing countries. G7 partners have also committed to specific areas of action to achieve progress on gender equity.
As regards financial commitments, the EU announced a contribution of €550 million to the replenishment of the Global Fund to fight AIDS, Tuberculosis and Malaria. "This means that our overall involvement will exceed €1 billion," said President Donald Tusk at the beginning of the summit.
The EU will also contribute an initial €1 million to the International Fund for Survivors of Conflict-Related Sexual Violence, which Nadia Murad and Doctor Denis Mukwege, winners of the 2018 Nobel Peace Prize, presented to G7 leaders during the summit in Biarritz.
Climate change and oceans
On climate change, the EU and other G7 partners reaffirmed their commitment to the full and effective implementation of the Paris Agreement.
Leaders followed up on the G7 Ocean Plastics Charter agreed last year at their summit in Canada and discussed further initiatives to reduce plastic pollution.
G7 leaders also endorsed a charter on biodiversity, as adopted by the G7 environment ministers in May 2019. The charter aims to boost efforts to halt biodiversity loss and to sustain a healthy planet.
Digital transformation
Leaders also discussed the digital transformation and how to ensure that it is open, free and secure. The discussion focused on ways to defend our democratic societies and institutions – and our electoral processes – from foreign threats.
Leaders exchanged views on how to continue the fight against terrorist content online. They also discussed international cooperation on artificial intelligence.