TWN Info Service on WTO and Trade Issues (Sep25/03)
4 September 2026
Third World Network

Finance: G20 ministers fail to agree on a unanimous communique
Published in SUNS #10506 dated 4 September 2026

Geneva, 3 Sep (D. Ravi Kanth) -- A two-day meeting of the finance ministers of the Group of 20 (G20) industrialized and developing countries as well as central bankers, held under the current presidency of the United States, failed to arrive at a unanimous communique in Asheville, North Carolina, on 1 September.

Amidst sharp differences due to the seemingly unilateral global economic and financial policies and actions adopted by the host country, as well as its war against Iran that led to global energy and fertilizer crises, the G20 participants appeared at loggerheads from the start of the proceedings on 31 August.

Besides, differences also cropped up between the US and some of its Western allies on the one side, and China on the other, over Beijing's alleged non-market economic policies that are seemingly causing disruptions, according to media reports.

The US apparently remained at loggerheads with some of its traditional allies like Canada and Germany, as well as some developing countries, over its unilateral tariffs and hostile financial measures such as sanctions against countries that refuse to follow its dictates, the New York Times suggested in a report on 2 September.

Surprisingly, there was no mention of either global trade or the unilateral trade measures imposed by the US that has seemingly asphyxiated the World Trade Organization.

Perhaps this will be dealt with at the G20 trade ministers' meeting, to be held in the US towards the end of the month.

CHAIR'S STATEMENT

In the face of the sharp differences that cropped up during the deliberations, the US Treasury Secretary Scott Bessent issued a chair's statement at the end of the meeting.

Bessent claimed that the chair's statement "was agreed by all G20 members except China, which objected to paragraphs 4, 10, 11 and 13" (see below).

The statement seemingly focused on promoting strong economic growth across its key priorities - private sector engagement, productivity, global imbalances, financial literacy, sovereign debt, digital assets, and financial sector issues - while "streamlining" the finance track's agenda.

The "streamlining" of the financial track appears to be a euphemism for narrowing the agenda to focus on US priorities instead of tackling the global climate and inequality challenges confronting developing countries.

On global economic growth and value chains, while the statement claimed that the global economy has remained resilient despite ongoing wars and conflicts, the reality on the ground across countries seems somewhat different.

Many developing and least-developed countries are being subjected to heavy economic burdens and shortages of oil and fertilizers, according to several media reports.

The statement called for ensuring the smooth functioning of value chains for energy, food, fertilizers, and critical minerals, expressing concern over disruptions to energy trade and stressing that free navigation through the Strait of Hormuz is essential.

China, according to the chair's statement, objected to the above language, as it is common knowledge that the seemingly unprovoked and illegal war launched by the US and Israel against Iran on 28 February has reportedly led to large-scale dislocations in key energy and other sectors.

The statement, however, acknowledged that the resolution of "ongoing wars and conflicts" is essential for durable growth, while remaining silent on the source of the unilateral wars.

It underscored the need for stable macroeconomic environments that support growth and jobs, especially for developing countries.

Yet, very little appears to have been done to address the large-scale impacts of the ongoing wars and conflicts on developing countries, said an analyst, arguing that the planned "demolition" of international bodies in addressing trade, finance, and climate concerns has led to grave crises on several fronts.

Without naming China, the statement urges "countries to avoid unnecessary export restrictions."

However, it remained silent on the export restrictions imposed by the US on items such as advanced chips and microprocessors to China and other countries.

On fertilizer supply chains and Multilateral Development Bank commitments, the chair's statement draws attention to the Multilateral Development Banks' joint statement on a roadmap to strengthen fertilizer supply chains, including increased financing for production, storage, and infrastructure.

It argued that "where fiscal space allows, temporary targeted measures can help the most vulnerable while preserving debt sustainability," emphasizing the potential of AI (artificial intelligence), computing, and digital infrastructure to increase productivity, while addressing associated risks.

The statement, however, failed to mention the growing concerns across countries over the damaging impact of establishing data centers for AI and the loss of employment.

On central banks, monetary policy and AI, the statement says that central banks are strongly committed to price stability and financial system resilience, while arguing that central bank independence is crucial.

"As AI reshapes our economies, central banks will distinguish productive capacity gains from demand changes."

The statement's emphasis that central banks can cleanly separate AI-driven supply effects from demand is technologically naive; AI impacts both simultaneously and asymmetrically, making monetary policy even more of a guesswork than usual, the analyst said.

On structural impediments and neoliberal policy orientation, the statement suggests that the common impediments to growth include regulatory burdens, inefficient taxes, inadequate investment, high capital costs, and labour supply gaps.

With "deregulation" being treated as the key to boosting labour participation, enhancing human capital and promoting pro-growth tax regimes, the chair's statement showed its face in pursuing neoliberal financial policies.

Declaring AI as a general-purpose technology with profound potential, the statement noted that economies that embrace its responsible development will set the pace of growth.

"Abundant and affordable energy, quality infrastructure investment, predictable investment environments underpinned by macroeconomic stability and the rule of law, and the responsible embrace of AI and other emerging technologies will help facilitate growth."

However, the seemingly irrational exuberance being laid on AI and the huge investments needed for its operations in a world dominated by inequality, illiteracy, and climate crises could soon lead to a "doomsday" scenario, said analysts familiar with the chair's statement.

On the role of international organizations and the private sector, the chair's statement calls on the IMF, World Bank Group, and OECD to support efforts, with analysis on structural impediments, productivity and macroeconomic frameworks.

It, however, failed to mention other multilateral organizations that are part of the United Nations system.

In a similar vein, the chair's statement "support(s) the OECD's work on tax policies and business dynamism and look(s) forward to an interim report by year-end."

It called on the Multilateral Development Banks to engage in policy reforms and targeted investments with demonstrable returns, while affirming the private sector's critical role in driving growth, jobs, and innovation.

However, the private sector's contribution to employment generation has been limited, with the public sector historically playing the dominant role in employment generation.

Even though the notion of "private sector-led" is repeated like a mantra, the chair's statement nowhere addresses oligopolistic and monopolistic tendencies, rent-seeking, or the reality that private investment often chases quick financial returns rather than long-term productivity, especially in developing economies, said an analyst who asked not to be named.

CHINA'S OBJECTION

China sharply objected to paragraph 10 of the chair's statement, which states that it recognizes that "excessive and persistent imbalances pose risks and can generate economic distortions and adverse cross-border spillovers that hinder growth, drive and exacerbate imbalances in other countries, heighten economic and supply chain vulnerabilities and reduce resiliency."

Further, the statement says that countries should take steps to eliminate non-market policies and practices that exacerbate imbalances.

It asks countries with excessive surpluses to remove distortions constraining domestic consumption and over- reliance on exports.

The statement argues that countries with excessive deficits should undertake policies supporting savings and fiscal consolidation.

It emphasizes that surveillance of global imbalances is anchored in the IMF's mandate, while welcoming the IMF's work to strengthen evenhanded surveillance of distortive policies and spillovers.

It wants the IMF to present more granular scenario analysis, including costs of inaction, and to integrate this into its surveillance.

It maintains that the OECD could analyze structural drivers, and wants both the IMF and the OECD to improve data coverage of non-market policies.

Clearly, while it appears that the communique is pointing a finger at the surplus countries (implicitly China), it offers no concrete mechanism or timeline for adjustment.

China has consistently opposed the use of the term "non-market policies" on grounds that it is a loaded term.

In what is viewed as asymmetrical burden-shifting, the chair's statement, however, seems to ignore the fact that the US itself runs massive deficits fueled by fiscal overspending and a dollar reserve status that it actively benefits from.

On advancing global financial literacy and "Trump Accounts", the statement acknowledges that financial literacy is foundational to financial health, emphasizing the US Presidency's high-level attention, including the Fireside Chat and the Financial Literacy Solutions Sprint.

The chair's statement says that it targets interventions that support saving, investing, and wealth-building, such as through "Trump Accounts" in the US and other national incentive programs.

The seemingly overt political branding of "Trump Accounts" is a first for a G20 communique and undermines the document's credibility as a neutral technical statement, said an analyst who asked not to be quoted.

While financial literacy is important, it is a weak palliative for systemic issues like wage stagnation, regressive taxation, and inadequate social safety nets - issues that are not addressed in the statement.

On improving the global sovereign debt architecture, in paragraph 13, the statement states that members remain committed to addressing debt sustainability challenges and acknowledge the need for faster, more predictable debt treatments, while reaffirming the G20 Common Framework and affirming solidarity and preserving flexibility.

It calls for joint action and fair burden-sharing, pointing out that members are deepening efforts to apply lessons learned - especially where a meaningful share of external debt is owed to G20 members - to streamline restructurings.

It welcomes progress on the IMF-World Bank 3-Pillar approach to support countries with sustainable debt but high debt service, and encourages further implementation, including through official bilateral creditors.

According to analysts, the Common Framework has been apparently a failure for all but a few countries (e.g., Zambia took years), as "non-binding" and "illustrative" templates have proven to be weak.

On regulatory modernization and digital assets, the chair's statement states that G20 members are committed to modernizing regulatory frameworks to ensure financial stability and support growth.

It expressed support for the Financial Stability Board's (FSB) work and looks forward to its stocktake of modernization efforts, its consultation report on guiding principles, and its Implementation Monitoring Review.

It said that members look forward to the FSB's paper on Sound Practices for Responsible Adoption of AI, while sharing updates on Basel III implementation and renewing support for the FSB's Key Attributes of Resolution Regimes, including the Thematic Peer Review on Public Sector Backstop Funding.

The statement stressed on the transformative role of digital financial innovation, including digital assets, in supporting growth, and the private sector's key role in driving it.

Further, the G20 members, according to the statement, committed to advancing responsible regulatory frameworks that preserve stability, support growth, and establish clear pathways for sound digital innovation, while considering cross-border opportunities.

Clearly, the US appears to be legitimizing the role of digital/blockchain (Bitcoin) in the global monetary system, as the chair's statement says that it looks forward "to the FSB's findings on global stablecoin arrangements and data challenges."

It reaffirmed the G20 Roadmap for Enhancing Cross-border Payments and called for expanding payment system operating hours, using the ISO 20022 data model, and facilitating cross-border data transmission while respecting domestic legal frameworks.

On anti-money laundering and Financial Action Task Force (FATF) commitments, the statement lent support to the FATF and FATF-Style Regional Bodies in implementing AML/CFT (Anti-Money Laundering/Countering the Financing of Terrorism) standards, in line with the April 2026 Ministerial Declaration.

The statement called for risk-based supervision and looked forward to the FATF's Learning and Development Forum in Dallas, while suggesting that the FATF ensure that jurisdictions with significant virtual asset use effectively implement FATF standards as a priority.

The G20 members, according to the statement, are encouraged by the FATF's renewed focus on illicit finance from fraud, scams, and AI exploitation, and welcome efforts to strengthen public-private partnerships to detect and disrupt illicit finance.

However, the digital assets language is cautiously optimistic but notably avoids any mention of central bank digital currencies (CBDCs) - a major omission given that the US is lagging behind many of its peers, said analysts. +