Economy | 22 December, 2018

The 3 key outcomes from the G20 summit

Selena Bellosta Relationship Manager

What is the G20?

The Group of Twenty (or G20) is an international forum, made up of the world’s main developed and emerging economies. In total 19 countries and the European Union.

According to data from the Organisation for Economic Cooperation and Development (OECD), G20 members represent 85% of world GDP, 75% of international trade and two-thirds of the world’s population.

What does it do?

Its mission is to solve the most pressing world problems: from financial crises to wars, climate change, natural disasters, political commitments, fighting corruption, development, gender equality and so on.

These issues are first dealt with in sessions held throughout the year, culminating in this three-day summit, which takes place each year in a different country and, where the leaders “sign a final declaration committing themselves to jointly address and collaborate in the agreed projects”.

Who meets and where?

For the tenth anniversary of the G20, the leaders of the main world powers: Donald Trump, Vladimir Putin, Xi Jinping (President of China) and Angela Merkel (German Chancellor) gathered in Buenos Aires, Argentina, between 29 November and 2 December.

G20 member countries

Conclusions

Below we explain the 3 key outcomes from the latest meeting of the G20.

World Trading

The proposal for World Trade Organisation (WTO) reform, was unanimously approved, as the rules have remained intact since the Second World War and become obsolete.

Trade war.

The summit achieved an uneasy truce between the President of the United States, Donald Trump and the President of China, Xi Jinping.

Both presidents agreed to keep tariffs at 10% from January 1, 2019, and remove some of the existing ones. As of January 1, no additional tariffs will be implemented.

Paris Climate Agreement.

The United States again marked its differences with the members of the G20 with its decision to withdraw from the ‘Paris Climate Agreement’. The US will continue with its own climate policy, which runs contrary to the measures for reducing greenhouse gas (GHG) emissions.

The ‘Paris Agreement’ was reaffirmed at the world climate change summit on December 12 of last year. However, additional talks were scheduled for Bangkok in order to reach conclusions.