Finance Minister François-Philippe Champagne, centre, speaks with colleagues at the G7 finance ministers meeting in Banff, Alta., on May 21.Jeff McIntosh/The Canadian Press
Finance ministers and central bankers from Group of Seven countries took aim at unfair economic practices that generate “excessive imbalances” in the global trading system on Thursday, at the end of three days of meetings in Alberta. But they largely brushed aside the devastating effects of the trade war launched by the United States.
A group communiqué published Thursday did not mention China by name but appeared to be targeting Beijing’s practice of subsidizing industries that have been overproducing and dumping excess inventory on world markets, to the detriment of private-sector competitors.
“We recognize the need for a common understanding of how non-market policies and practices (NMPPs) aggravate imbalances, contribute to overcapacity, and impact the economic security of other countries,” read the joint statement, issued at the end of the meetings in Banff.
The statement added: “We agree on the importance of a level playing field and taking a broadly coordinated approach to address the harm caused by those who do not abide by the same rules and lack transparency.”
U.S. Treasury Secretary Scott Bessent has been particularly vocal about China’s conduct in recent weeks, saying in an April speech that its “economic model is built on exporting its way out of its economic troubles” and is not only “harming China but the entire world.”
The Thursday communiqué made no mention of the disruption to the global economy caused by a worldwide trade war launched by U.S. President Donald Trump in March and April – measures that breach existing treaties and have damaged growth prospects in most countries, including G7 members.
Some Canadian bank economists are predicting the economy could contract in the coming quarters in large part because of the U.S. tariffs. Many businesses are scaling back their hiring and investment plans amid the uncertainty, according to survey results published by the Bank of Canada.
There was no indication from Canada that it made any progress during this week’s Banff meeting in convincing the U.S. to drop its protectionist tariff actions against Canadian imports – measures that have eroded bilateral relations.
The joint statement appeared to sidestep the United States’ rogue trade actions in favour of harmony.
Finance Minister François-Philippe Champagne, the host of the meeting, told a press conference he thinks the communiqué “emphasized, above all, the importance of G7 unity in the face of complex global challenges.”
He said attendees had frank and constructive discussions, and, when asked by a reporter, he denied that the communiqué was watered down to keep Mr. Bessent happy.
The Finance Minister said the fact that the meeting managed to issue a communiqué was an achievement.
“A lot of people were wondering, even at the time, whether there would be a communiqué. And now what you have is that the best proof of unity is that we have a joint communiqué.”
While the communiqué did not address damaging U.S. tariffs and made only one mention of trade, Mr. Champagne acknowledged that the issue could not be avoided during the meeting.
“There’s no skating around the fact that tariffs are an issue that is always coming up at these meetings, because we’re trying to enhance growth and stability,” he said in a second media availability.
Despite the absence of an official mention of China in the joint statement, Bank of Canada Governor Tiff Macklem told reporters that Beijing’s “unfair trading practices” were part of behind-closed-door conversations.
“There was also quite a bit of discussion around unsustainable global imbalances, unfair trading practices in China, state-sponsored exports that are impacting our economies,” he said, adding that the International Monetary Fund is taking on the task of identifying “unsustainable global imbalances.”
The current U.S. levies on Canada that remain in effect include 25-per-cent tariffs on Canadian steel and aluminum, as well as a 25-per-cent tariff on Canadian-made vehicles, which applies only to the non-U.S. content in those cars and light trucks. There is also a 25-per-cent tariff – which drops to 10 per cent on critical minerals, energy and potash – for goods that don’t comply with rules of origin in the United States-Mexico-Canada Agreement. Canada responded with a series of countertariffs on tens of billions of dollars of U.S. imports.
The joint statement also called for action on financial crime, including money laundering, and artificial intelligence.
The three-day G7 finance ministers’ meeting is a prelude to the June G7 summit in nearby Kananaskis, where Canada will play host to Mr. Trump and other world leaders, including Ukrainian President Volodymyr Zelensky.
Mr. Zelensky is seeking further support and more sanctions against Russia as well as help in rebuilding Ukraine, as Mr. Trump tries to arrange a ceasefire in Moscow’s war on Kyiv.
Thursday’s communiqué also included a strong message of support for Ukraine despite the fact that the U.S. under Mr. Trump is seeking warmer relations with Russia, the aggressor in its war with Kyiv.
“We welcome ongoing efforts to achieve a ceasefire. If such a ceasefire is not agreed, we will continue to explore all possible options, including options to maximize pressure such as further ramping up sanctions.”
The statement also said the G7 countries agree that “no countries or entities, or entities from those countries that financed or supplied the Russian war machine will be eligible to profit from Ukraine’s reconstruction.”
It said the Banff meeting discussed how artificial intelligence can spur economic growth and help the financial sector but also recognized the ”need to monitor and assess potential risks to financial stability as AI adoption further increases."
The communiqué flagged shipments of inexpensive goods – often associated with Chinese sellers such as Temu and Alibaba – and the risk these are channels for drug smuggling.
Mr. Champagne noted, however, that Canada applies duties to these shipments at a low-dollar-value threshold and said Canadian authorities inspect “pretty much all” packages that enter the country.