The finance ministers and central bank governors from the G-7
countries called for a resumption of the stalled Doha Round of
global trade talks and expressed their concern at risks posed by
hedge funds to the global financial market.
In a communique following their two-day meeting in western
German Essen City, the ministers and bank chiefs urged more trade
liberalization and less protectionism.
"We remain committed to resisting protectionist sentiment and
fully support the re-launch of the Doha trade negotiations
announced in Geneva," they said.
The Doha Round began at a ministerial-level meeting in Doha,
Qatar in 2001, and has been top agenda of subsequent ministerials
in Cancun, Mexico (2003), and Hong Kong, China (2005), aiming at
removing trade barriers.
"We firmly believe that all participants have the responsibility
to ensure a successful outcome of the Doha round as it will enhance
global growth and contribute to poverty reduction," the statement
said.
The negotiations have been stalled by disputes over farm
subsidies and tariffs between the developed nations led by the
European Union, the United States and Japan and the major
developing countries.
Earlier, speaking of the Doha Round in his speech at the
meeting, Chinese Finance Minister Jin Renqing urged the developed
nations to realize the special treatment for the developing
economies because this round is for development.
In their communique, the officials from the G-7 countries also
voiced their concerns about the risks posed to global financial
markets by hedge fund investment.
"Given the strong growth of the hedge fund industry and the
instruments they trade, we need to be vigilant," they said. "We
therefore agreed to further pursue the issue."
German Finance Minister Peer Steinbrueck said on Friday that
there should be a registration of all the highly speculative funds
that operate with foreign capital.
He urged hedge funds managers to show greater awareness of the
political consequences of their dealings. "The result is a serious
financial crisis. This cannot be ruled out," he said.
Besides Jin, finance ministers from Brazil, Mexico, India and
South Africa also attended the discussion with the ministers from
G-7, which comprises Britain, Canada, France, Germany, Italy, Japan
and the United States.
Chinese Finance Minister Discusses World Economy
with G7 Counterparts
(Xinhua News Agency February 11, 2007)
