G7 Trade Ministers Vow To Strengthen Supply Chain Resiliency
Trade ministers from the Group of Seven advanced economies agreed Thursday, Sept. 15, 2022, to bolster supply chain resiliency for vital products including critical minerals amid Russia's ongoing war in Ukraine, Kyodo News reported.
Photo Insert: Factories in Europe and elsewhere began reporting production problems in the early months of 2020 following the spread of the coronavirus in China, and disruptions spread along global supply chains, compounded by the restricted movement of logistics.
The ministers from Britain, Canada, France, Germany, Italy, Japan, and the United States, plus the European Union (EU), said in a statement after their meeting in Germany that recent crises have drawn attention to "systemic vulnerabilities to chronic risks and acute supply chains shocks" that hamper economic growth and security.
"We, the G7 Trade Ministers, underline that diversifying trade and expanding trading relations on a mutually beneficial basis is key to ensuring well-functioning supply chains and to improving the resilience and sustainability of our economies," Mainichi Japan also reported.
Factories in Europe and elsewhere began reporting production problems in the early months of 2020 following the spread of the coronavirus in China, and disruptions spread along global supply chains, compounded by the restricted movement of logistics.
The situation was made worse by Russia's invasion of Ukraine in late February this year. Prior to the start of the meeting in Brandenburg near the German capital Berlin, the host country's economy minister, Robert Habeck, stressed the importance of support for Ukraine.
Yulia Svyrydenko, Ukraine's first deputy prime minister and minister for economic development and trade, was present at the meeting and she asked for support to realize a safe living environment and stable employment for Ukrainians.
"We continue to condemn Russia's brutal, unprovoked, unjustifiable and illegal war of aggression against Ukraine," said the G7 ministers, adding they will expand coordinated efforts to prevent Moscow from profiting from its aggression and to stem Russia's ability to carry out the war.
The ministers also said supply chains should promote their climate goals and the sustainable use of resources, as G7 nations have committed to achieving net-zero emissions by 2050.
Meanwhile, the ministers expressed concerns over some trade practices such as intellectual property theft, market-distorting actions of state-owned enterprises, and harmful industrial subsidies, among others.
The statement did not mention China by name, but concerns about the country's trade practices were evident.