DURBAN (Reuters) -G20 finance chiefs agreed a communique on Friday that underscored the importance of central bank independence and the role of the World Trade Organisation in advancing trade issues.
Here are the key points the finance ministers and central bank governors agreed on during a two-day meeting in the coastal city of Durban, South Africa, as well as which policy areas were omitted.
GLOBAL ECONOMY AND TRADE
The communique highlighted the uncertainty in the global economy caused by conflicts, trade tensions, supply chain disruptions, high debt levels, and frequent extreme weather events and natural disasters.
It also affirmed the commitment of central banks to ensure price stability, stating, “central bank independence is crucial to achieving this goal.”
MULTILATERAL COOPERATION
The finance chiefs stressed the importance of multilateral cooperation, recognising the World Trade Organisation (WTO) role in advancing trade issues and maintaining agreed-upon rules as part of the global trading system.
However, they acknowledged the WTO’s challenges, calling for “meaningful, necessary, and comprehensive reform.”
DEBT
The finance chiefs said they were committed to addressing debt vulnerabilities in low- and middle-income countries, including a commitment to further strengthen the implementation of the G20 Common Framework in a “predictable, timely, orderly, and coordinated manner.”
Launched in late 2020, the G20 Common Framework is a platform that aimed to enable debt restructuring on a case-by-case basis and get overstretched countries back on their feet. But progress has been slow.
“We furthermore call for enhanced debt transparency from all stakeholders, including private creditors,” the communique said.
OMISSIONS
While the communique referred to “extreme weather events and natural disasters” as economic challenges, it did not explicitly address climate change.
It also contained no mentions of Russia’s invasion of Ukraine, long a point of division for the group, nor the conflicts involving Israel and Hamas in Gaza. Instead, the communique mentioned “ongoing wars and conflicts” without elaborating.
The word tariff did not appear in the commmunique, which instead referred to “trade tensions.”
(Reporting by Olivia Kumwenda-Mtambo; Editing by Mark John and Hugh Lawson)
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