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Do We Now Have A G-19 Instead Of A G-20?

  Commentary: The G-20 consists of 19 of the strongest economies in the world, plus the European Union (EU). At annual meetings, the chief executives of each member nation participate in top-level discussions on issues such as foreign policy, trade, climate change and immigration. The goal is to have frank discussions in order to create social and economic stability throughout the world. Collectively, the G-20 nations account for nearly two-thirds of the world’s population, 75 percent of world trade, and 80 percent of total world Gross Domestic Product. At different summits, non-G20 nations can be invited to participate.          

            This year’s G-20 Summit was held in Hamburg, Germany on July 6 and 7.

Watching coverage of the recently concluded G-20 Summit in Hamburg, Germany, several impressions came to mind. Other than the brief visit President Trump made to Poland before the G-20 Summit began, where he was greeted cordially by the Polish government and right-leaning Polish crowds, he looked awkward and out of place at G-20 events. His G-20 appearance was already made tense by statements issued by host German Chancellor Angela Merkel, who defended her previous statements after Trump’s May visit to Europe during the G-7 summit in Italy, that "The times in which we can fully count on others are somewhat over, as I have experienced in the past few days. And so, all I can say is that we Europeans must really take our destiny into our own hands."  Before the G-20 Summit, Merkel commented, "These will not be easy talks. The differences are obvious and it would be wrong to pretend they aren't there. I simply won't do this." These statements proved to be a harbinger of what occurred in Hamburg.

            Most of the G-20 leaders lined up against U.S. isolationism in terms of its having pulled out of the Paris climate agreement, and its push back on expanding global trade and trade agreements. In the G-20’s final communiqué that it issues at the end of each summit, and this time overseen by host Germany and Chancellor Merkel, wiggle room was made for the U.S. on trade. While the members affirmed their commitment to push for open markets, it added language to accommodate Trump by stating, it would, “also strive to ensure a level playing field.” While in deference to Trump’s rhetoric on trade agreements, this added statement is superfluous in the sense that every signatory to a free trade agreement strives to protect its interests during negotiations.

            On climate change, the final communiqué was not so gentle to the U.S. by stating, “We take note of the decision of the United States of America to withdraw from the Paris agreement - the leaders of the other G-20 members state that the Paris agreement is irreversible.” It was this passage that made the isolationism by the 19 partners of the U.S. in the G-20 so clear and striking. Even the U.K and France, traditionally two of the U.S.’s closest partners, weighed in on U.S.stances. At the end of the summit, U.K. Prime Minister Theresa May commented, that she was “dismayed at the U.S. decision to pull out” of the accord. She told reporters that she had personally spoken to Trump to ask him to reconsider his stance. She also went on the record to state that, “I was very clear I want global Britain to be one of the great advocates for free trade around the world.”  When discussing how integrated world trade is and how nations must fight against isolationism, French President Macron dramatically pulled his cell phone out of his pocket, held it up for all to see, and stated that it was a product made in China, and he bought it in the U.S. as a Frenchman. Undoubtedly, these comments were directed at Trump. 

Views on the results of the summit are strongly divergent. After its conclusion, Trump tweeted: “The G-20 Summit was a great success for the U.S. - Explained that the U.S. must fix the many bad trade deals it has made. Will get done!” Most political and economic observers noted how isolated the U.S. had become among many of its previously close allies.

I sensed that the other G-20 members performed the proverbial “rolling of the eyes” when the subject of U.S. stances on trade, climate and immigration were discussed. U.S. presidents in the first year of their first term can stumble and look awkward as they learn their job and jostle for their place in the world order. Every foreign trip brings an opportunity to build bridges with allies and seek rapport with adversaries. However, with two trips to Europe under his belt and a second bite at the apple to stabilize and foment U.S. relations with traditional allies such as EU, Trump has widened the chasm. At this point, it is not clear whether future foreign meetings such as this one will help or serve to cause more angst and instability in the world. The question many analysts are now asking is, “do we now have a G-19 instead of a G-20?”  

Jerry Pacheco is President of the Border Industrial Association.  His columns appear in The Albuquerque Journal.