BANFF: Talks among G7 finance ministers faced challenges Wednesday as the group worked to overcome divides on thorny issues like the impact of US President Donald Trump’s tariffs and support for Ukraine.
With discussions set to close Thursday, hopes for a final communique reflecting unity among the Group of Seven advanced economies remained uncertain, as tensions persist on Trump’s trade policies.
The day began with an exchange of pleasantries and the traditional group photo in front of snow-capped mountains at a hotel in western Canada’s Banff National Park.
But friction among the group — comprising Britain, Canada, France, Germany, Italy, Japan and the United States — emerged shortly after meetings began.
Italian Finance Minister Giancarlo Giorgetti said the start of the talks faced “some difficulties.”
But he added that the group was “able to overcome these differences,“ and voiced hope a final statement reflecting G7 unity could be reached.
Few concrete details emerged from Wednesday’s talks but US Treasury Secretary Scott Bessent had been expected to face pushback on Trump’s tariffs, which threaten to drag down global economic growth.
Bessent described Wednesday’s talks as “very productive.”
The meeting’s host, Canadian Finance Minister Francois-Philippe Champagne, declined to say whether he raised the issue of tariffs in his bilateral meeting with Bessent, but insisted the pair “get along very well.”
Asked about friction in the talks, Champagne said: “That’s why we have meetings, we have frank discussions.”
“We’re both pleased about the progress we’re making and the sense of unity of the G7,“ Champagne told reporters.
Japanese Finance Minister Katsunobu Kato told reporters that during his meeting with Bessent, he affirmed that US tariffs were “extremely regrettable” and “not always an appropriate measure to adjust trade imbalances.”
Trump has repeatedly complained about US trade deficits, and at times implied his global tariffs were partly aimed at balancing US exports and imports.
Joint statement?
Champagne declined to say whether he was optimistic a joint statement could be agreed.
But a European official, who requested anonymity when discussing the ongoing talks, told a AFP a unifying closing statement was not a priority.
“The important thing is not whether there is a communique, but moving forward together,“ adding that Bessent’s presence in Banff should be seen as positive.
“At least the Americans remain engaged in the multilateral system. We clearly disagree on tariffs, but the G7 is the place for candid exchanges, to advocate for our point of view,“ the official said.
Russia pressure
Champagne told reporters on Tuesday the presence of Ukrainian Finance Minister Sergii Marchenko in Banff “sends a strong message to the world” that members are recommitting to support the country against Russia’s invasion.
UK finance minister Rachel Reeves, who chaired Wednesday’s meeting on Ukraine alongside Marchenko, said “pressure on Russia’s war machine is needed now more so than ever,“ according to a government statement.
She charged that Russia’s Vladimir Putin has “failed to engage in good faith with proposals”, and attempts to broker a ceasefire from his “illegal and brutal war.”
Reeves also aired an ambition to move fast in lowering the $60 price cap on Russian crude oil, the UK statement said.
Marchenko did not brief reporters following the meeting on Ukraine.
But on Tuesday he told reporters he would seek during the gathering to reiterate Ukraine’s position on the need for further pressure on Russia.
“It is a significant G7, existentially,“ said Ananya Kumar, a deputy director at Washington-based think tank the Atlantic Council.
“I don’t think in any of the past years, people have questioned the US’s relationship with the other G7 member states as much as they have in the last 100 days,“ she told AFP ahead of the gathering.
“The big theme is going to be how do we prevent global instability, how do we find consensus in this chaos?”
This week’s meeting come ahead of the G7 Summit next month, set to take place near Banff, with Trump expected to attend.
