|
|
Economic expansion continues in the EU and globally, although the momentum slowed down in the second half of 2018. Global growth is projected to pick up later this year and continue into 2020, supported by continued accommodative financial conditions, stimulus measures in some countries and dissipating one-off factors. However, trade and geopolitical tensions have intensified. As the premier forum for international economic cooperation, the work of the G20 remains essential to boost global confidence. We should build on our readiness to act together in case of a sharper than expected downturn. We need to monitor risks, take action to mitigate them and stand ready to respond if they materialise. Since the biggest risks are geopolitical and trade tensions, we must use the G20 to lower them.
International trade and investment are important engines of job creation, growth, development, productivity and innovation. We need to step up non-discriminatory collective efforts to de-escalate trade tensions by addressing their main root causes while acting within the rules-based order. These include levelling the playing field, stopping unfair trade practices; tackling distributional imbalances that go beyond trade; and addressing unilateral actions that undermine the rules-based multilateral trading system.
Last year G20 leaders committed to reform the World Trade Organisation. This process should continue in Osaka. In our view, beyond taking stock of ongoing efforts in Geneva, we should also provide steer to this process by recognising that a balanced reform should cover the three functions of the World Trade Organisation: monitoring, negotiating, and dispute settlement. In this regard, it is our view that Leaders should refer to certain aspects such as the work on transparency and subsidies, e-commerce and the reinforcement of the dispute settlement function, as a matter of urgency, to ensure that the two-stage binding third-party adjudication system remains efficient. Additional progress in the Global Forum on Steel Excess Capacity is also needed to level the playing field globally We will insist on the need to prolong the mandate of the Forum in its current form to deliver on agreed commitments to reduce overcapacity and eliminate the subsidies that cause it. We will also call for an acceleration of the discussions on the International Working Group to reach an agreement on the new international export finance disciplines by next year.
The Japanese G20 presidency has put forward an ambitious and overarching agenda to harness the benefits of digitalisation. During the last EU-Japan Summit, we expressed our support for the G20 “Data Free Flow with Trust” initiative, which would allow the free flow of data among countries with high levels of privacy protection. It is aligned with the agreement between the EU and Japan, in force as of January this year, which has created the world’s largest area of safe data flows. We also supported the launching of the “Osaka Track” which intends to promote international e-commerce rules. We would like to play an active role in both initiatives.
As the digital transformation of the economy accelerates, ensuring fair and effective taxation has become a global challenge. We will give the highest priority to finding a comprehensive way to tackle the taxation of the digital economy with a view of elaborating a global solution by 2020 supported by a report of the Organisation for Economic Co-operation and Development. We should endorse the G20 Guiding principles on Artificial Intelligence, which are in line with the EU ethics guidelines, as well as promote our initiatives to fight online hate speech and disinformation. [...]
Over the last decade, the G20 has played a crucial role in promoting and coordinating reforms of financial regulation. These reforms have significantly improved the resilience of the global financial system. We will continue to support the work of the Financial Stability Board to evaluate the effects of the regulatory reforms and monitor emerging financial risks and vulnerabilities. We will also encourage further cooperation to ensure that the benefits of financial innovation can be realised, that the financial system is cyber-resilient and that finance is conducive to a green economy. We will also continue to assess the relationship between regulatory policies and market fragmentation.
We believe that the International Monetary Fund should continue to be adequately resourced to preserve its role at the centre of the Global Financial Safety Net. We will therefore continue to support the G20 commitment to a strong, quota-based and adequately resourced International Monetary Fund. We also welcome progress made on the proposals of the G20 Eminent Persons Group on Global Financial Governance, in particular on the creation and implementation of effective country platforms to better coordinate development assistance, enhancing the risk insurance of development finance and the monitoring of capital flows. [...]
Letter to Member States on G20 Summit in Osaka