The G7 summit could end without an agreement

According to a senior Japanese official, the G7 summit that will take place this weekend in France is likely to end without a joint statement due to the differences between the member countries in commercial matters

According to Reuters, it would be the first time that a G7 summit ends without a statement since the meetings began in 1975. The division exists because of the slogan “America First” and the trade policies that have been developed by President Donald Trump in disagreement with the other economies of the G7.

“It is crucial for everyone to create a common understanding through deep debate. But it is difficult to send messages to the rest of the world when a statement is not going to be issued.” This was confirmed by a senior official to the Japanese television station NHK, according to which to date there is no plan to issue an agreement after the summit.

Undoubtedly, the summit comes at a time when the US-China trade war and volatile financial markets are pressuring policy makers to redouble their efforts to avoid a global recession.

At the summit to be held in the French city of Biarritz from August 24th to 26th, it is increasingly difficult to find common ground among allies with the United States, due to its atypical approach to handle disputes concerning trade and the environment.

For its part, France wishes to advance in the global debate on the universal taxation of the giants of digital technology. However, leaders are unlikely to open new horizons. It is worth remembering that the G7 is made up of the United States, France, United Kingdom, Japan, Germany, Italy, Canada and the European Union.

L. Sáenz

Source: Banca & Negocios 

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