PM leads fight against safe havens at G20

G20 calls for global forum to address excess steel capacity; Commits to rolling back protectionist measures by end-2018

The G20 leaders on Monday committed to roll back protectionist measures by end-2018 to boost free trade but the Summit, held in the shadow of Britain's vote to exit the European Union, fell short of taking concrete measures in defence of globalization and against isolationism.

On the concluding day of the two-day summit, Prime Minister Narendra Modi asked fellow G20 leaders to act decisively to eliminate safe havens for economic offenders, unconditionally extradite money launderers and end excessive banking secrecy. In a reference to Pakistan, Modi said "one single nation in South Asia" was spreading terror in the region.

In another of the thematic sessions at the Summit, the PM spoke about India's support to a trade facilitation agreement (TFA) for services, a move that will help in movement of professionals. In his meeting with UK PM Theresa May, their first after the Brexit vote, Modi said her country's new visa policy could have a "negative impact on Indian working professionals wishing to visit UK for short term". May, however, told reporters on the sidelines that she considered the points-based immigration system as "flawed" and will not use it to crackdown on post-Brexit migration from within the European Union (EU). The system was one of the key assurances given by those who campaigned for Britain to leave the EU in the June 23 referendum.

The Summit, marked by diplomatic tiffs between US and China and distracted on the last day by firing of missiles by North Korea, ended without consensus on key issues. The joint communique released after the summit said the leaders agreed that G20 countries will coordinate macro-economic policies, rollback protectionist policies in trade and investment by end-2018 and also set up a global forum to check overcapacity in steel production. This comes in the backdrop of the US imposing heavy duties on cheap steel imports from China. India, the third-largest steel producer, is also facing cheap Chinese steel exports.

The leaders also decided to set up a research centre in China on fugitive repatriation and asset recovery. The leaders formulated a G20 2017-2018 anti-corruption action plan. It identified terrorism and immigration as challenges that complicated the global economic outlook.

In his intervention in one of the thematic sessions at the Summit, the PM said: "G20's efforts should be for zero-tolerance for corruption and black money; zero administration, policy and treaty loopholes; zero barriers and full commitment to action." Modi said fighting corruption, black money and tax evasion were keys to effective financial governance. The PM said to achieve that "we need to act to eliminate safe havens for economic offenders, track down and unconditionally extradite money launderers and break down the web of complex international regulations and excessive banking secrecy that hide the corrupt and their deeds". India is pursuing extradition of industrialist Vijay Mallya and former Indian Premier League Commissioner Lalit Modi from the UK.

The PM also pressed for reform of the Bretton Woods Institutions - IMF and World Bank. "IMF should remain a quota-based institution and not depend on borrowed resources," Modi said emphasising that the "long-delayed 15th General Review of Quotas must be completed by 2017 Annual Meetings." India has been advocating governance reforms in the IMF to ensure its credibility, legitimacy and effectiveness.

At the thematic session on Robust International Trade and Investment, the PM said: "Knowledge- and innovation-driven economy requires free mobility. India's priority is to work towards Trade Facilitation Agreement for Services." India is likely to move a proposal on this at the World Trade Organisation (WTO) to start the discussion. The PM urged countries to fully implement the Bali and Nairobi ministerial decisions, which provide special safeguard mechanism for developing countries against import surge in agricultural commodities, particularly sugar.

On Climate Change, the leaders called for all countries to ratify the Paris climate deal as soon as their "national procedures allow", a move which would provide more time to India to work out its own strategy keeping up with its developmental goals. The PM stressed the need for safeguarding climate justice, which requires affordable financing and environmental sound technology for developing countries. The US and China have ratified the Paris Climate Change Agreement, while India has held out. Later in the day, NITI Aayog chief Arvind Panagariya told reporters, "We were not quite ready yet in terms of domestic actions that require for us to ratify or at least commit to ratify Paris Deal-2016. We plan to do it as soon as possible but can't commit."

In his meeting with French President Francois Hollande, the PM raised the leak of confidential data on the capabilities of six Indian Scorpene Class submarines being built in Mumbai in collaboration with a French defence company. The leak reportedly took place outside India.

With Turkish President Recep Tayyip Erdogan, Modi discussed India's membership to the Nuclear Suppliers Group. Turkey, along with China and some others, had stalled India's efforts to join the 48-member nuclear non-proliferation club during its meeting in June in Seoul.

The PM returned to India in the evening. He will now be travelling to Laos to attend the East Asia Summit and India-ASEAN Summit on September 7 and 8.

MESSAGE FROM G20

• G20 leaders resolve to combat a “populist backlash” against global trade, and highlight the benefits it has brought including lifting millions out of poverty, said IMF’s Christine Lagarde
   
• US President Barack Obama warned China of “consequences” because of its aggressive behaviour in the disputed South China Sea region
   
• In a fallout of Brexit, Japan said its firms could shift key operations from Britain to Europe if they lose free access to the latter’s single market