Recently, the Union Minister of Commerce and Industry participated in the G7 (Group of Seven) Trade Ministers Meeting in Osaka, Japan.
GS II: International Relations
Dimensions of the Article:
- Key Highlights of the Meeting
- About G7
Key Highlights of the Meeting
Enhancing Supply Chain Resilience
- India presented suggestions for enhancing supply chain resilience.
- Emphasized the vulnerabilities exposed by the COVID-19 pandemic and geopolitical events in existing supply chains, which led to increased commodity prices and global inflation.
Collaborative Regulatory Framework
- Urged governments to collaborate on a regulatory framework to facilitate the movement of supply chains and cross-border trade.
Global Value Chains Framework
- Referenced the Generic Framework for Mapping of Global Value Chains from the New Delhi Declaration of the G20 to help member countries identify risks and enhance trade resilience.
- Encouraged public-private partnerships, investment in critical infrastructure, and innovation and digitalization of supply chains.
Free Trade Agreement (FTA)
- Reviewed the progress of negotiations for a proposed Free Trade Agreement (FTA) with the UK, now in its final stages.
- Addressed differences on issues like Rules of Origin and services sector in the FTA negotiations.
Rules of Origin
- Discussed the significance of Rules of Origin in determining the national source of products, affecting duties and restrictions.
UK’s FTA Objectives
- The UK aimed for a significant reduction in import duties on goods like scotch whiskey, automobiles, lamb meat, chocolates, and confectionery items.
- Sought more opportunities for UK services in Indian markets, especially in telecommunications, legal, and financial services.
Trade and Economic Partnership Agreement (TEPA)
- Discussed the progress of the Trade and Economic Partnership Agreement with European Free Trade Association (EFTA) member countries, including Switzerland, Norway, Iceland, and Liechtenstein.
- G7 stands for Group of Seven, which is an international intergovernmental economic organization consisting of seven member countries.
- The member countries are the United States, Canada, Japan, Germany, France, Italy, and the United Kingdom.
- As of 2022, G7 countries make up 10% of the world’s population, 31% of the global GDP, and 21% of global carbon dioxide emissions.
- G7 was founded in 1975 as the G6, consisting of the six richest countries in the world at that time.
- Canada joined the group in 1976, and the group became known as the G7.
- The group meets annually to discuss global economic issues and make decisions that can affect the global economy.
- The main objectives of G7 are to promote economic growth and stability, enhance international trade, and coordinate policies on economic issues among the member countries.
- The group also focuses on addressing global challenges such as climate change, cybersecurity, and geopolitical tensions.
Meetings and decisions:
- G7 leaders meet annually at the G7 Summit to discuss global economic issues and coordinate policies.
- Decisions made by the G7 can have a significant impact on the global economy and international relations.
- The G7 also collaborates with other international organizations such as the International Monetary Fund and the World Bank.
- The G7 has been criticized for being too exclusive, as it only includes the richest countries in the world and does not represent the interests of developing nations.
- Critics also argue that decisions made by the G7 can have negative consequences for developing countries and can perpetuate global economic inequality.