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Monday, August 26, 2019

The Results of the G-7

The G-7 meetings in France are over.  Was anything accomplished?  If you listen to the media, the answer is NO.  The Democrats agree, although Old Joe Biden can't even seem to remember what the meeting was; he keeps calling it the G-8.  But what's the reality?  Here's what happened.

1.  The biggest news at the G-7 was the announcement that Japan and the USA had agreed in principle on a new trade deal.  There are minor details still being worked out, but both sides expect to sign a final agreement by the end of September.  The deal includes massive new purchases by Japan of American agricultural products.  Japan has the third largest economy in the world; a trade agreement between the largest economy (the USA) and Japan is a very big deal.  The new agreement settles items that have been in dispute for decades between Japan and the USA>

2.  It is also clear that there was little or no pressure on the USA to move away from the confrontation with China over trade.  Prior to the meeting, the same people who now say little was accomplished kept telling us that the rest of the world would pressure President Trump into changing America's China policy.  As usual, they were wrong.  Indeed, it was quite clear that Japan is very happy with our China policy.  The other five leaders really said nothing.  They are all in weak positions.  Italy doesn't even have a prime minister.  Macron, in France, is on his way out.  His popularity is so low he is unlikely to run for re-election.  Angela Merkel is a lame duck in Germany.  Trudeau is also likely to lose the next Canadian election.  Only Boris Johnson in the UK is not clearly going, but he has to deal with Brexit and that may do him in by the end of next month.

3.  On all the issues of the day, the supposed opposition to the US positions never materialized.

So, overall, the constant commentary prior to the meeting was wrong.  There was no opposition to America.  It was a cordial meeting without confrontation.  That's a good thing and an accomplishment in and of itself.  Throw in the bonus of the trade deal with Japan, and the G-7 was a success for the USA. 

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