G7 seeks to reduce "excessive imbalances" in the global economy and may lower the cap on the price of Russian oil
The finance ministers and central bank governors of the G7, gathered in Banff, Canada, committed to addressing the "excessive imbalances" in the global economy, as indicated by excerpts from a draft statement and remarks from the European Commission.
The group emphasized the importance of combating economic practices that are "not market-oriented" that undermine international economic security, highlighting the need to assess market concentration and the resilience of global supply chains.
During the discussions, the potential revision of the cap on Russian oil prices, currently set at $60 per barrel, gained prominence. According to the Vice-President of the European Commission, Valdis Dombrovskis, the proposed value would be $50, reflecting the current context of lower prices.
The measure aims to increase pressure on Russia in the context of the war in Ukraine. However, sources indicate that the United States is still not convinced about the effectiveness of lowering this cap, and the U.S. Department of the Treasury has not officially commented.
New energy sanctions against Moscow and the need for a coordinated response to unfair practices in international trade were also discussed. Although the statement does not directly mention China, there is reference to an increase in so-called low-value international remittances ("de minimis"), associated with retailers such as Temu and Shein, suggesting concern over trade distortions caused by these platforms.
Germany's Finance Minister, Lars Klingbeil, expressed optimism regarding the finalization of a joint statement. The document is expected to reaffirm the G7's commitment to clear rules, transparency, and a coordinated approach to global economic challenges, reinforcing the pursuit of a "level playing field" in international trade.
Source: Reuter
