G7 targets ‘excessive imbalances’ in global economy, eyes de minimis exemption

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

Ahead of the meeting there had been doubt about whether there would be a final communique, given divisions over US tariffs and Washington’s reluctance to refer to Russia’s war on Ukraine as illegal. But after talks that stretched over three days, participants signed on to a lengthy document.

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

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

The finance ministers and central bank governors, who met in the Canadian Rocky Mountains, said there was a need 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 often are targeted at China’s state subsidies and export-driven economic model.