By David Lawder and Promit Mukherjee
BANFF, Alberta (Reuters) - Finance ministers and central bank governors from the Group of Seven nations pledged to address "excessive imbalances" in the global economy, according to a draft communique on Thursday.
The finance leaders, meeting in the Canadian Rocky Mountains, said there was a need for a common understanding of how "non-market policies and practices" undermine international economic security, according to parts of the communique seen by Reuters. The draft statement calls for an analysis of "market concentration and international supply chain resilience."
Bloomberg News was first to report the draft communique.
German Finance Minister Lars Klingbeil told reporters that a joint statement from G7 finance ministers and central bank governors meeting in Banff, Alberta, was still under negotiation but that he was optimistic there would be agreement.
The leaders said they agreed "on the importance of a level playing field and taking a broadly coordinated approach to address the harm caused by those who do not abide by the same rules and lack transparency," the draft said.
The draft excerpts did not name China, but references by the U.S. and other G7 economies to "non-market policies and practices" often are targeted at China’s state subsidies and export-driven economic model.
The U.S. Treasury said earlier this week that Treasury Secretary Scott Bessent intended to press G7 allies to focus on rebalancing the global economy to protect workers and companies from China’s "unfair practices."
A U.S. Treasury spokesperson did not immediately respond to a request for comment on the Bloomberg report. The Chinese embassy in Ottawa did not immediately respond.
The draft also recognized an increase in low-value international "de minimis" package shipments that can overwhelm customs and tax collection systems and be used for smuggling drugs and other illicit goods.
The duty-free de minimis exemption for packages valued below $800 has been exploited by Chinese e-commerce companies including Shein and Temu.
The G7 nations also will consider options to increase sanctions on Russia if a ceasefire with Ukraine is not reached, Bloomberg reported.
Klingbeil said Russia needs to commit to serious peace talks to end the war in Ukraine, or face stronger international sanctions.
Finance leaders from G7 countries — the U.S., Britain, Canada, France, Germany, Italy and Japan — are meeting through Thursday. The excerpts may be part of a final communique being prepared to summarize three days of meetings among officials from the G7 countries.