You are here: Home » Reuters » News
Business Standard

Germany's Merkel offers way to solve trade row at tense G7 summit

Reuters  |  LA MALBAIE, Quebec 

By and William James

LA MALBAIE, (Reuters) - German on Friday floated an idea to set up a way to resolve trade disputes between the and its allies, a French said as consensus appeared to elude leaders at a in

U.S. trading partners are furious over Donald Trump's decision last week to impose tariffs on and aluminium imports from Canada, the and as part of his "America First" agenda. Some have retaliated.

The described Merkel's suggestion as a "shared assessment and dialogue" mechanism, but gave no further details.

The proposal, made at a meeting ahead of the two-day nations in La Malbaie, Quebec, was strongly supported by other leaders present, the said, adding that said he was ready to invest personally in it.

Expectations for a breakthrough at the summit, however, are low, with U.S. allies focused on avoiding rupturing the G7, which in its 42-year history has tended to seek consensus on major issues.

"It's highly unlikely there will be a final communique," a official said on condition of anonymity.

Merkel said it was not clear whether the group would issue a final directive, adding that failure to do so would be an honest reflection of the lack of agreement among Canada, the United States, Japan, Britain, Italy, and The EU is also attending the

Trump set the tone before leaving on Friday.

"We're going to deal with the unfair trade practices. If you look at what Canada, and Mexico, the - all of them - have been doing to us for many, many decades. We have to change it. And they understand it's going to happen," Trump said.

Trump and French had what was described by a French official as a "very cordial" discussion about trade and The leaders had exchanged terse messages on ahead of the summit.

Merkel and Trump also had a brief conversation at the summit. Asked by reporters whether he would relent on tariffs, Trump looked at Merkel and said: "I don't know. Ask this great lady."

Trump's "America First" message to allies has hardened since he brought on to his team.

He plans to leave the summit four hours earlier than originally planned to fly to to meet with North Korean leader Kim Jong Un, the said.

chiefs have largely praised Trump for his efforts to stabilize the Korean peninsula, but they are unhappy he pulled out of an international agreement to limit Iran's nuclear ambitions.

INVESTORS NERVOUS

and the EU have denounced the U.S. tariffs and has proposed levies on a range of U.S. goods next month while the EU has pledged its own retaliatory measures.

"will not change its mind when it comes to the illegal and absolutely unjustified application of tariffs on and aluminium," Canadian said on Friday.

The spat has financial markets worried about tit-for-tit escalation.

Financial markets have been largely subdued in their response to the summit. Stocks on global indexes mostly eased on Friday and the dollar <.DXY> was up slightly against a basket of currencies. [nL5N1TA4AC]Investors are also concerned about the future of the North American Free Trade Agreement, which Trump has threatened to terminate. Canada and Mexico, the other members of the 1994 pact, have been frustrated by the slow pace of talks to renegotiate NAFTA.

RUSSIA'S SHADOW

Relations with also became an issue at the summit after Trump on Friday said the country should be allowed to again attend meetings with the G7, an idea that did not gain much traction at the meeting. Freeland said the issue was not formally raised during the session.

was suspended from what was then called the in 2014 because of its annexation of Crimea from Trump said Russia should be readmitted, but even seemed to reject that suggestion.

"Russia is focused on other formats, apart from the G7," Kremlin said in a statement reported by the government-controlled agency.

Merkel said EU countries at the summit agreed that the conditions to readmit Russia had not been met.

Trump's presidency has been clouded by a federal investigation into alleged Russian meddling in the 2016 presidential election, and possible collusion by his campaign. Both and Trump have denied the allegations.

G7 leaders will agree on Friday to share information and work with and companies to thwart foreign meddling in elections in their countries, according to a draft summit commitment seen by

(Additional reporting by and in and Jean-Baptiste Vey, Giselda Vagnoni, William James, Roberta Rampton, Jan Strupczewski, Will James, Andrea Hopkins and David Ljunggren in La Malbaie, Quebec; Writing by Paul Simao; Editing by Hugh Lawson, and Susan Thomas)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, June 09 2018. 02:48 IST
RECOMMENDED FOR YOU