The omens were good for the G7 summit at Carbis Bay in Cornwall. Untypical blazing sunshine and a victory for England’s footballers in the Euro Championships put the hosts in fine fettle (qualified only slightly by the NZ cricketers’ series win).
The first and most important objective was achieved: the world leaders managed to agree not to disagree. Even better, no one called the host, Britain’s PM Boris Johnson, “weak and dishonest”, no matter how much they might have been tempted.
But despite the 25 page summit communique, direction and leadership was a little harder to find.
Continue reading “G7 – the view from the top is fine, if a bit fuzzy”
India’s decision not to join the Regional Comprehensive Economic Partnership promoted by China is politically significant. But its impact on trade and prosperity is more nuanced, as Bloomberg explains.
It avoids some market opening on both sides (India to agriculture; others to services) that would have been economically beneficial. But the greater significance of the pact is the restrictions on access it would impose on those outside the regional trade grouping.
“Still, the effect of harmonizing standards at the regional-agreement rather than global level is the opposite of an opening of trade … The standards that are established across the zone inevitably resemble those of its largest member. That would be fine in a global agreement, but in a regional deal the effect is to raise barriers to nations outside the bloc with different rules.” Continue reading “China and India’s regional trade squabble echoes in Europe”