G20 finance chiefs approach consensus in South Africa despite US tariff tensions

Straits Times

2 days ago

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FILE PHOTO: A woman walks at the Cape Town International Convention Centre during the G20 Finance Ministers meeting in Cape Town, South Africa February 24, 2025. REUTERS/Nic Bothma/File Photo
DURBAN - Finance chiefs of G20 countries expressed optimism for an agreement on a common position on trade and other global challenges on Friday despite U.S. President Donald Trump's tariffs which have overshadowed their meeting.
The G20, which emerged as a forum for cooperation to combat the 2008 global financial crisis, failed to reach a joint stance when finance ministers and central bankers met in February, to the dismay of hosts South Africa.
An agreement now would be considered an achievement even though G20 communiques are not binding and the precise wording is unclear.
Canadian Finance Minister Francois-Philippe Champagne told Reuters late on Thursday he was cautiously optimistic the meeting in the coastal city of Durban would result in a final communique.
An official of another G20 country, who requested not to be identified, expressed similar optimism.
South Africa, under its presidency's motto "Solidarity, Equality, Sustainability", has aimed to promote an African agenda, with topics including the high cost of capital and funding for climate change action.
Delegates at the meeting sought to agree lines on global economic challenges, including the uncertainty created by trade tensions, as well as wording on climate finance.
Two delegates said the challenge was establishing what language Washington would accept, a task made harder by the absence of U.S. Treasury Secretary Scott Bessent from the two-day meeting.
Bessent skipped February's Cape Town gathering as well, which several officials from China, Japan and Canada also did not attend, even though Washington is due to assume the G20 rotating presidency in December.
Bessent's absence was not ideal, but the U.S. had been engaging in discussions on trade, the global economy and climate language, said a G20 delegate, who asked not to be named.
Finance ministers from Brazil, China, India, France and Russia also missed the Durban meeting, though South Africa's Central Bank Governor Lesetja Kganyago said what mattered was that all G20 countries were represented.
In opening remarks on Thursday, South African Finance Minister Enoch Godongwana said the G20 had a critical role to reinforce rules-based cooperation and drive collective action on global challenges that no country could solve alone.
"The need for bold cooperative leadership has never been greater," he said. REUTERS