G7 reiterates FX pledges, vows more cyber cooperation: draft

Posted May 14, 2017

The draft will be reviewed before publication later on Saturday by the G7 finance ministers and central bankers who are discussing issues facing the world economy at a two-day meeting in Bari, Italy.

Since taking office, his administration has issued a report that names two G-7 countries, Germany and Japan, for special monitoring due to their large trade surpluses with the US and has sparked a trade battle with Canada, another G-7 country, by imposing higher tariffs on imports of Canadian softwood lumber.

Trump has proposed slashing the US corporate income tax rate and offer multinational businesses a steep tax break on overseas profits brought back home. "We will work to lift actual and potential growth, while ensuring that the fruits of economic growth are shared more widely", the statement said.

The draft, a copy of which was seen by Reuters, also said the G7 financial leaders would strengthen cooperation to counter cyber threats such as a global online attack which infected tens of thousands of computers in almost 100 countries on Friday.

They also say the US demand to balance trade bilaterally was not economically sound, because trade deficits and surpluses could only be analyzed in a global context.

While holding firm on that despite attempts to persuade him to give ground, Mnuchin said his colleagues were gaining a better understanding of what President Trump's policies mean for the USA and the rest of the world.

Mnuchin said a trade deal announced Friday with China showed the success of the Trump administration's trade approach. A Canadian ministry statement called it a "productive discussion" and that Canada committed to working out a durable solution.

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Keane also said that United captain Wayne Rooney, 31, should look for a transfer in the summer if he isn't getting enough games. This, having spent around £500million on players since Sir Alex Ferguson retired in 2013.

A senior US Treasury official said Mnuchin had been quizzed on a series of issues, including Trump's tax-cutting plans. "We have to do that in a more profound way. and I think that is what is going on", he said.

"Of course we recognize that there are different starting points, different views in different countries", the chair of the talks, Italian Finance Minister Pier Carlo Padoan, told Bloomberg Television, adding that "this is not an obstacle to reaching a common perspective".

While the International Monetary Fund forecast in April that world economic growth will accelerate to 3.5 percent in 2017 and 3.6 percent in 2018 from 3.1 percent in 2016, some G-7 members referred to uncertainties in the global growth outlook, the official told reporters, requesting anonymity.

The meeting also coincided with news of a significant foray by the Trump administration into global commerce.

The G-7 countries are: Canada, France, Italy, Germany, Japan, the United States and the United Kingdom; the European Union also attends the informal meetings.

Their meeting paves the way for a gathering of national leaders, including US President Donald Trump, in Sicily on May 26-26. The group's agreements, presented in the form of a final statement, aren't legally binding; instead they represent the leaders' political commitment to follow through.