G7Summit: Small step forward on trade

The leaders of the G7 nations have been able to attain a small step forward as both US and leaders of European Union agreed to establish a dialogue centring trade in next two weeks which was seen as a small but positive step forward to stem the apparent divide between the US and its European allies.

The “America First” agenda of US has been intensified further ever since John Bolton has been included in the Trump’s core team. The European allies have been highly infuriated with Trump administration for imposing tariffs on steel and aluminium on imports from the EU, Canada and Mexico. There have been retaliation as well on the US imports by some nations. The European nations also presented data to President Trump and confronted him with numbers on imports and exports in a bid to influence his thinking. Trump, however, responded by showing his own set of numbers and stuck to his position that the United States has been on receiving end and has been on a disadvantage in terms of international trade with trade balance grossly skewed in favour of European nations. Trump, however, had words of praise for President Macron and stated that the French leader was highly instrumental in resolving the trade disputes. German Chancellor Merkel is said to have presented the ‘shared assessment and dialogue’ mechanism to resolve the trade disputes.

Apart from the slight headway, there seems no major way forward or a breakthrough. The likelihood of a final communiqué remained low. President Trump will leave the Summit much before the same comes to a close in order to meet the North Korean leader in Singapore. G7 leaders had all praises for President Trump for his successful efforts to restore peace to the Korean Peninsula although there was an apparent disappointment over the US withdrawal from the Iran Nuclear Deal which had been able to contain the nuclear ambitions of Iran.

The latest tariffs have left the investors worried and nervous about the prospect of a looming trade war seemed brighter. Ottawa has responded by imposing counter tariffs on many US imports with EU also firm on its retaliation. British PM May has urged all sides to show restraint and instead focus on growing steel production in China. There are also concerns about the future of NAFTA which the US administration has threatened to terminate.

President Trump also brought up the issue of readmitting Russia to G7, a proposal which did not gain much weight and limelight although Merkel stated that the conditions for same had not been met.

 

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