DESPITE pressure from the U.S. and China, the final G20 communique has skipped any mention of the December 2016 deadline for member-countries to ratify the Paris Agreement on climate change.
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China’s President Xi Jinping has urged the leaders to avoid “empty talk” and confront rising protectionism that threatens globalisation and free trade.
The G20 called for the formation of a global forum to take steps to address steel excess capacity and encourage adjustments, the White House said in a statement, one of the controversial issues discussed at the summit. Eight years past since last financial crisis, but the developed world remains struggling with sluggish growth or fragile recovery.
Despite this, both leaders described what will probably be their last encounter, as Obama prepares to hand his presidency to Donald Trump or Hillary Clinton.
Xi said in a closing speech that leaders attending the summit made a decision to point out the way and set the course for the world economy.
In the meantime, greater participation and commitment of G20 members would mobilize investments into green industries and promote the development of climate finance, said Ma Jun, chief economist of the research bureau of the People’s Bank of China. “We commit to complete our respective domestic procedures in order to join the Paris Agreement as soon as our national procedures allow”, said the joint communique issued at the end of the G20 summit.
A mix of effective tools, including fiscal, monetary and structural ones, must be implemented to buffer against short-term risks and unleash medium- to long-term potential, Xi said. The report clarifies the definition and scope of green financing, identifies challenges and provides voluntary options for countries to support the transition into a green and low-carbon growth model, Ma said.
“We agree that facing the risks and challenges of the current world economy, and maintaining a peaceful and stable global environment are crucial”.
“The G20 declaration that the refugee “burden” must be shared rings very hollow, since many G20 countries are not shouldering their fair share of the global responsibility for refugees and a United Nations summit later this month is doomed to fail to agree a deal”.
In their communique the group resolved to make growth more inclusive, “generating more quality jobs, addressing inequalities and eradicating poverty so that no one is left behind”. “A lot of countries are seeing volatile politics”, he said at his news conference. “But there was no agreement on that”, said Panagariya, who is also vice chairman of Niti Aayog.
The G20 agreed to take forward the agenda of innovative growth while saying, “In furtherance of the above, we emphasize the importance of open trade and investment regimes to facilitate innovation through Intellectual Property Right protection, and improving public communication in science and technology”.
The International Monetary Fund’s Christine Lagarde conceded that globalization “has to benefit all, not a few”, but said that the fruits of a connected world were severely undersold.
According to China, it is not dumping in global market and trade protectionism will not help in narrowing the glut.
The G20 leaders also agreed that global tax policies should promote growth and tax certainty and they noted that China has established a worldwide tax policy design and research center that will contribute in this area.
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For example, for the first time, priority is given to development in the global macro-policy framework. “Only when the mechanism responds to changes and advances with the times can it retain its vitality”, Xi said.
