Home / World News / G7 urges countries to back trade reforms

G7 urges countries to back trade reforms

Trade ministers from the Group of Seven (G7) wealthy countries have criticised states who undermine the global trading system and called for democracies to rally behind reforms of the international trade rulebook.

Following a virtual meeting, the G7 members said they were concerned about “increased use of non-market policies and practices” and took aim at those who use heavy subsidies, mask the state’s involvement in the economy and steal technology.

“These distort competition and reduce fairness and trust in the system,” they said in a communique issued by the UK, which holds the rotating presidency of the G7 this year.

“Fundamentally, we note that they are a threat to the integrity and sustainability of the rules-based multilateral trading system.”

The communique did not refer to China directly but members like the UK have accused the Asian country of undermining the system by using all the policies mentioned.

China, a World Trade Organisation member since 2001, has denied criticism that it steals intellectual property, unfairly hurts the environment or improperly trades goods made with forced labour.

In another indirect reference to China, the communique also called on countries which use WTO rules designed for developing economies to their advantage and called for the rules to be changed to prevent that.

The UK and other WTO members have previously argued that China benefits from exceptions to the rules which were made decades ago and no longer reflect its status as an economic superpower.

“We call on advanced WTO members claiming developing country status to undertake full commitments in ongoing and future WTO negotiations,” the communique said.

The group held “frank and constructive” discussions regarding reform of the WTO dispute resolution system.

They said those discussion would continue at a further meeting in October, and more broadly expressed support for WTO Director-General Ngozi Okonjo-Iweala’s efforts to reform the organisation.

About brandsauthority

Check Also

Do Chance Meetings at the Office Boost Innovation? There’s No Evidence of It.

When Yahoo banned working from home in 2013, the reason was one often cited in …

%d bloggers like this: