LONDON: Britain on Monday urged the United States to honor free-trade commitments made at the G7 summit even after US President Donald Trump rejected a joint communique in a bitter spat over tariffs.
“The communique was agreed by all the parties who attended the G7 and we fully intend to honor it,” the spokesman said. “We would hope that the US will similarly honor the commitments that they have made,” he said, speaking before a parliamentary statement on the summit by Prime Minister Theresa May.
May told MPs that it had been “a difficult summit with, at times, some very candid discussions”, adding that there had been “strong debate and disagreement on some issues”.
In a pointed criticism of Trump’s policy, May said that the most effective way of reaping the benefits of globalization was through multilateral action, adding: “It cannot be done by taking unilateral action against your partners.
“As long-standing allies, we do not make progress by ignoring each others’ concerns but rather by addressing them together,” she said. The summit in Canada was deeply divisive and ended with a renewed threat of trade war on Saturday after Trump rejected an attempt to write a consensus statement and bitterly insulted the Canadian host.
The joint communique that was thrashed out over two days of negotiations vowed that members would reform multilateral oversight of commerce through the World Trade Organization (WTO) and seek to cut tariffs.
Relevant pieces published earlier:
i) World Trade Organization (WTO) chief Roberto Azevedo warned Monday against a damaging escalation of trade tensions between the United States and other major economies, following a divisive G7 summit. Trans-Atlantic and other trade wars would have “a long-term impact on the global economy,” he said at a Berlin meeting with German Chancellor Angela Merkel and leaders of the IMF, World Bank, and other international institutions. “We must stop this escalation of tensions, the tit-for-tat process is not going to be helpful… new sectors will be brought into the picture, which is something that will harm everyone,” he said. The EU has vowed to retaliate against US metal tariffs imposed by US President Donald Trump, and tensions worsened at a Group of Seven summit in Canada after Trump rejected an attempt to write a consensus statement and bitterly insulted the Canadian host. The joint communique which Trump rejected had vowed that G7 members would reform multilateral oversight of commerce through the WTO and seek to cut tariffs. Azevedo warned that “the rising trade tensions risk a major economic impact, undermining the strongest sustainable period of trade growth since the end of the financial crisis. “But, more than that, the systemic effects could be very damaging, risking a long-term impact on the global economy.” The US president came under fire at the contentious G7 summit of leading economic powers for his “America First” protectionist drive. (Published on 12th June 2018)
ii) The head of the World Trade Organization agreed today with a call from French President Emmanuel Macron for reform, saying he saw a need to “strengthen” the body and “make it more effective”. WTO Director-General Roberto Azevedo has in recent months warned that the US-led trend of erecting new trade barriers and saber-rattling on commerce could hamper global growth. He met with France’s Macron on Wednesday to discuss “current global trade tensions” and the “central role of the WTO in safeguarding the stability and predictability of the trading system,” the organization said in a statement. “It was comforting to hear what he said and I agree entirely with his assessment on the need to strengthen the WTO and to make it more effective in addressing the trade challenges of today,” Azevedo said in the statement.
The WTO chief, who has been at the helm of the global trade body since 2013, said he stood “ready to support him and all WTO members in exploring ways to make the WTO work better for all.” His comments came after Macron on Wednesday told officials at the annual forum of the Organization for Economic Cooperation and Development in Paris that he wanted talks on overhauling the WTO. Macron voiced frustration after weeks of intense EU lobbying to remain exempted from the metal tariffs announced by US President Donald Trump in early March. Officials have indicated they see little chance that Trump will continue exempting EU companies from the duties of 25 percent on imported steel and 10 percent on aluminum. (Published on 31st May 2018)
iii) Director-General of the World Trade Organization (WTO) Roberto Azevedo arrived in Vietnam on Friday. It will be the first-ever visit by a WTO chief to the country after Vietnam joined the WTO in January 2007. During his visit, he held meeting with Vietnamese Prime Minister Nguyen Xuan Phuc in capital Hanoi and expressed interest to enhance cooperation with Vietnam in human resource training and international trade. “Vietnam is a story of success, in which trade makes a great contribution to the development of the country,” said Azevedo. Speaking on the occasion, Vietnamese Prime Minister Nguyen Xuan Phuc said Vietnam remains a slow-developing country among WTO members, which is in need of further support to increase capacity for more effective participation in the multilateral trading system. (Published on 15th April 2016)
iv) World Trade Organisation (WTO) has accepted Afghanistan as a member country of WTO in a meeting held at Nairobi on Thursday calling it “historic” membership to boost the war-torn nation’s economy and build peace. Afghanistan’s membership came after formal approval by the WTO ministers in the Kenyan capital Nairobi. WTO Director-General Roberto Azevedo said he was “delighted” to welcome Afghanistan. “Trade-led growth will create new economic opportunities and jobs, especially for women; it will reduce poverty, and increase prosperity,” said Afghanistan’s Deputy Chief Executive Mohammad Khan Rahmani, in a speech at a WTO meeting in Nairobi where the agreement. (18th December 2015)
