G7 pledges to cut global imbalances

FINANCE ministers and central bank governors from the Group of Seven democracies papered over their differences on Thursday, pledging to tackle “excessive imbalances” in the global economy and saying they could increase sanctions on Russia.

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There had been doubt before the meeting whether it would issue a final communique, in light of divisions over US tariffs and Washington’s reluctance to refer to Russia’s war on Ukraine as illegal. But after three days of talks, participants signed on to a lengthy document devoid of previous language on fighting climate change and which also softened references to the Ukraine war.

“We found common ground on the most pressing global issues that we face,” Canadian Finance Minister Francois-Philippe Champagne said.

“7 think it sends a very clear signal to the world ... that the G7 is united in purpose and in action.”

The officials, who met in the Canadian Rocky Mountains, called for a common understanding of how “non-market policies and practices” undermine international economic security.

The document did not name China, but references by the US and other G7 economies to non-market policies and practices are often targeted at its state subsidies and export-driven economic model.

The G7 statement omitted mention of US President Donald Trump's tariffs that are disrupting global trade and supply chains and swelling economic uncertainty.

Champagne said ministers “were not skating around” the issue and had discussed its impact. Canada seeks a deal to eliminate Trump’s tariffs of 25% on many goods, such as steel and aluminum.