G7 SUMMARY

SUMMARY

ADDITIONAL 1 BILLION VACCINES FOR POOR NATIONS

Half of which would come from the United States — while assuaging concerns about compulsory licensing of vaccine-related IP. The group also recognized the looming failure of antibiotics due to antimicrobial resistance – an area of significant Chamber advocacy over the past several years.

DISCUSSION ABOUT STRONGER TRADE RULES TO ADDRESS CHINA’S UNFAIR PRACTICES

Leaders pledged to enhance cooperation on investment screening and called for a task force on infrastructure finance in third countries – a clear nod to interest in offering alternatives to Chinese financing. In addition, trade ministers will pick up discussions on policies to eradicate forced labor in global supply chains, a serious concern but potentially a source of costly new compliance requirements as well as sanctions.to antimicrobial resistance – an area of significant Chamber advocacy over the past several years.

G7 INDUSTRIAL DECARBONIZATION AGENDA AS A PLATFORM TO HARMONIZE STANDARDS

Leaders also agreed to move to an “overwhelmingly decarbonized power system in 2030,” but with no definition as to what this means and adopted B7 recommendations for a nuanced approach to coal regulation. Leaders also agreed “to move forward towards” mandatory climaterelated financial disclosures that provide “decisionuseful” information. Despite our expectations going into the weekend, we saw little discussion of sustainable agriculture, which will become more of a flashpoint moving forward.

MUTUAL RECOGNITION OF DIGITAL APPS, TESTING REQUIREMENTS & VACCINATION STATUS

On COVID, as borders begin to reopen, leaders called for mutual recognition of digital applications, testing requirements and vaccination status, with further discussions to follow. While not the level of action the Chamber and B7 have been advocating for, we consider this a partial win.

REFLECTED ON GROWING CONCERN AROUND INFLATION

The COVID-driven economic crisis is far from over, but conversations at the summit reflected growing concern around inflation. A muchhyped discussion around a 15% global minimum tax proved less robust than expected, and leaders tossed the ball to the G20 and OECD, where we expect a lengthy battle.

JOINT COMMUNIQUE USED NOTABLY HARSHER AND MORE EXTENSIVE LANGUAGE ON CHINA & RUSSIA

While U.S. officials described a “spectrum” of willingness by G7 members to push Beijing, the statement was harsh enough to prompt an almost immediate rebuke from the Chinese government. The outcome reflects growing concern among participants about China’s behavior but fell short of expectations of some in the U.S. government.

G7 LEADERS ADOPTED A 2030 NATURE COMPACT

Reflecting a commitment to consider the environmental impact of economic policy. The group pledged to dramatically increase public and private investment in biodiversity and the “nature positive economy,” and threw their support behind the new Taskforce on Nature-Related Financial Disclosures. The G7 also signaled a potential new UN – or other multilateral institution – agreement on plastics litter, which is likely to incorporate feedback from the Chamber.

THE G7 AGREED TO CHAMPION “DATA FREE FLOW WITH TRUST"

The endorsement underscores the continued salience of cross-border data flows, and the inability of the major economies to arrive at common frameworks that enable digital trade and privacy. The ongoing crisis in transatlantic data transfers and the recent embrace of data localization by many in Europe should give us pause as to whether this endorsement will yield meaningful results for the private sector.