G20 moves ahead regardless of the US policies

The G20 Summit in Hamburg has concluded. At last, the elite gathering managed to chalk out a unanimous declaration despite the disagreements on several fronts posed primarily by the United States President Donald Trump. Even though anti-globalisation protests have always accompanied such meetings, it was probably for the first time that disharmony prevailed large within the group over pertinent global issues. So much so that the world was unsure of a collective deal in the wake of Trump’s criticisms of free trade and his decision to pull out of the Paris climate change accord, which the other 19 members support. German Chancellor Angela Merkel did not mince words on the first day when she said, “Discussions [on trade] are very difficult.” And so were the talks on climate change, where the US forced the world leaders to amend the declaration.

With a fractured stance especially on trade and rise in nationalist and protectionist sentiment in the US, UK, and elsewhere, it is hard not to question the relevance of such a gathering. But the fact is trade powers the global economy. As per data from the World Bank, trade accounts for almost 58 per cent of the global GDP. The G20 members contribute 85 per cent of global GDP. In the nearly 20 years since the group was formed, the US has remained the leader. Emerging economies such as China and India, on the other hand, have moved up the ladder. China is now the third largest economy and India, the eighth. Therefore, the summit is still vital for global economic stability. It is the only time the leaders of the world’s top economies gather under one roof to discuss the global economic challenges. The more important question is whether the world can or should move ahead without the US. Europe and Japan have reached a landmark free trade agreement this week. Mexico and China, two of the United States’ largest trading partners, have been mulling their own deal. The world is moving ahead regardless and the G20 leaders have retained their longstanding rejection of protectionism. The US needs to make up its mind.