THE G20 Summit (on July 7 and 8) that brought together leaders of 19 leading economies and the European Union as well as key international organisations, such as the International Monetary Fund, United Nations, World Trade Organisation (WTO) and World Health Organisation, concluded with compromises — if only to secure a partial success amid anti-globalisation protests and an inward-looking America.
While the media focused on bilateral meetings, particularly the first face-to-face encounter between United States President Donald Trump and his Russian counterpart Vladimir Putin, some consensus was achieved as, for instance, on promoting free trade and building partnership with Africa. But, there were also disappointments and dissent, especially regarding global warming, on which the US stood alone, but other members, led by Germany, took a firm stance to defend the Paris Agreement on Climate Change.
Some analysts pointed out that the G20 Summit in Hamburg signified the end of America’s global leadership. Indeed, the climate issue showed the divide between the US and the rest of G20 members, but perhaps, it is too early to conclude a shift in global leadership. What is more certain, however, is that German Chancellor Angela Merkel showcased her skills as host and mediator in global affairs when the US focused more on domestic issues.
The G20 Summit last year in Hangzhou, China, had witnessed a milestone on global efforts tackling climate change; the US and China ratified the Paris Agreement the day before the Hangzhou Summit. The Paris Agreement, adopted in December 2015, was the most ambitious climate accord aimed at keeping the global temperature to well below 2°C above the pre-industry level.
These efforts of combating global warming, however, were later undermined by the withdrawal of the US from the Paris Agreement on June 1. The action of the world’s second largest CO2 emitter pulling out of the Paris Agreement has been criticised fiercely by environmentalists, business leaders, scientists and world leaders, and marked a significant rift between the US and other G20 members.
The G19 leaders (G20 minus the US), emphasised that the Paris Agreement was “irreversible” and reiterated their commitment to the full implementation of this landmark climate accord. They also issued the “G20 Hamburg Climate and Energy Action Plan for Growth” that put forward measures to facilitate the implementation of the Paris Agreement and promote sustainable development.
The US was clearly isolated on the climate issue due to President Trump’s intransigent stance. But, the communiqué also included some language to save his face, saying that the US “will endeavour to work closely with other countries to help them access and use fossil fuels more cleanly and efficiently and help deploy renewable and other clean energy sources”.
Besides climate change, trade was another issue over which the US had clashed with other G20 members. The negotiations on trade, however, seemed to reach a broad consensus despite Trump’s “America first” policy that has a protectionist flavour.
In the communiqué, G20 members pledged to “keep markets open, noting the importance of reciprocal and mutually advantageous trade and investment frameworks and the principle of non-discrimination”. They also committed to the WTO multilateral trading framework, as they noted “the importance of bilateral, regional and plurilateral agreements being open, transparent, inclusive and WTO-consistent”.
While G20 members were on the same page on free trade, the language on trade was not without concessions. Although they vowed to “continue to fight protectionism including all unfair trade practices”, they recognised the role of “legitimate trade defence instruments”, such as anti-dumping and anti-subsidy measures, which left room for potential nationalist policies.
Other issues that were crucial to global economic growth including global supply chains, digitalisation and labour markets were also discussed, although more specific and concrete
plans were not seen in the declaration.
The 2017 G20 Summit could be hailed a success, despite some compromises and division. The world leaders showed that they could accomplish meaningful outcomes and reach agreements without US leadership. Current issues concerning regional or global security, including the Syrian crisis, terrorism and North Korea, were also discussed on the sidelines.
The 2018 G20 will be hosted in Buenos Aires, Argentina. As the G20 Presidency has the agenda-setting power, we may expect more viewpoints and issues from the South and emerging economies. As G20 members represent 85 per cent of the world’s gross domestic product and two-thirds of the global population, the deals reached will be important for future global economic and political developments.
The writer is Assistant Professor at the Centre for Multilateralism Studies (CMS) of the S. Rajaratnam School of International Studies (RSIS), Nanyang Technological University, Singapore