G-20 and the Biggest Economies Now

In less than ten days, presidents and prime ministers of the biggest economies will gather in Japan. This two-day summit is the annual gathering of G-20 leaders where they discuss various topics. Let’s have a look at how everything started 20 years ago.

In 1999 twenty biggest economies formed a bloc that would give them the possibilities to discuss the economy, international relations, and other issues at the highest level. In 2008 new tradition started to have annual meetings to talk about the problems. The members of the G-20 are 19 countries and the European Union.

The upcoming summit in Osaka will present the opportunity to the world leaders to find solutions to the problems. There are several issues on the agenda. Usually, each year job market, terrorism, and trade are among topics discussed along with other pressing problems. However, this year, the dominant issue will be the trade war between the U.S. and China. President Donald Trump will meet President Xi Jinping to discuss the ongoing conflict and possible solutions.

China’s Economy

The meeting between the presidents might signal the end of a trade war if they manage to reach an agreement. Stakes are high as countries have a lot to lose if the situation further deteriorates. Trump wants China to address forced technology transfers, currency manipulation, and intellectual property theft, among other issues. President Trump said he is willing to put additional tariffs on $300 billion worth of Chinese goods.

China’s President is in North Korea ahead of the G-20 summit. His visit to one of the most isolated countries in the world comes a time when the U.S. and North Korea were unable to go to the agreement. President Xi’s visit to North Korea might become another topic of discussion in Osaka when he meets Trump.

Summits as important as G-20 are few, which means that such gatherings are significant to deal with various issues.  For the last several years, climate change was the topic, which was the major bone of contention. Donald Trump is against the Paris Agreement and decided to withdraw from this agreement. This year climate change and what countries are doing to tackle this problem is also on the negotiation table.

World Trade Organization

Another issue which will be on the agenda is the World Trade Organization and its future role in the world economy. The United States is dissatisfied with the dispute resolution mechanism. There is a risk that this mechanism might stop work at all, as the U.S. is blocking the appointment of judges.

According to the U.S. officials, the reason is that WTO judges often make decisions which are exceeding their authority. As a result, judges impose new obligations on the member states.  During the G-20 summit, the reform of this organization will be among the topics discussed by the leaders.

As stated above any G-20 summit is an important event, but this year it will have an additional role. The biggest economies are closely connected, and that creates the risks of the world financial crisis. U.S. and China must try to find at least a partial solution of their disagreement. In a couple of days, world leaders will gather to discuss the issues which will have a significant impact on the global economy.