G20 Summit At Osaka

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Japan hosted the Group of 20 (G20) Summit in Osaka. G20, which represents 80 percent of the global economic output, is a premier forum for debating global economic governance. As leaders of the G20 member countries gathered in Osaka, one of the top priorities was to restore confidence in the multilateral trading system as US-China trade tensions have started to weigh on the prospects of global growth. The Summit was attended by top leaders of the developed and developing economies. Prime Minister Narendra Modi represented India at the Summit.

Following the summit, Osaka Declaration was adopted with the objective ‘to realise a free, fair, non-discriminatory, transparent, predictable and stable trade and investment environment’. The leaders also underscored the need for reforming the World Trade Organization (WTO), the largest multilateral trade organisation and the foundation of the global trading system. As the US continues to block new appointments to the WTO’s Appellate Body consequently weakening the key dispute mechanism, the Osaka Declaration stated that ‘action is necessary regarding the functioning of the dispute settlement system consistent with the rules as negotiated by WTO members’.

As the President of the G20, Japan had a key role in setting the agenda. Japan’s Prime Minister Shinzo Abe launched the ‘Osaka Track’ with the aim of building rules for data governance and construct a new regime on Data Free Flow with Trust (DFFT). Even though a majority of G20 member states supported it, India expressed its’ reservations. Though cross-border flow of data and information creates increased productivity and innovation, there are several challenges related to privacy, data protection, intellectual property rights, and security. India is of the opinion that data is the ‘new form of wealth’ and focuses on data localisation, aligned with Reserve Bank of India’s directive in 2018.

Another contentious issue at the Osaka Summit was climate change as US President Trump reportedly avoided references to the Paris Agreement. But resistance from several leaders including the French President Emmanuel Macron led the Osaka declaration reaffirm the commitment of the signatories to the Paris Agreement towards its full implementation. The US position on the Paris Accord was separately reiterated as being ‘disadvantages’ to American workers and taxpayers. Besides, quality infrastructure investment has been agreed to as the common strategic direction of G20 members focussing on ‘sustainability of public finances, raising economic efficiency in view of life-cycle cost, integrating environmental and social considerations, including women’s economic empowerment, building resilience against natural disasters and other risks, and strengthening infrastructure governance’.

The Osaka Declaration stressed on intensifying efforts for swift implementation of the Financial Action Task Force (FATF) standards for preventing and combating money laundering, terrorist financing and proliferation financing. Furthermore, in its efforts to fight corruption, the G20 leaders agreed to continue practical cooperation to ‘deny safe haven to persons sought for corruption and their proceeds of corruption consistent with G20 and international commitments’. It urged for international cooperation in dealing with serious economic offenders and recovery of stolen assets in relation to corruption.

G20 is one of the premier forums for nuanced debate on primary challenges facing global economic and financial agenda; the Summit also presented opportunities on the side-lines for world leaders to hold several key informal bilateral and trilateral meetings. Several important bilateral meetings were hosted including the much anticipated US-China meeting aimed at negotiating a truce in the escalating trade war. Prime Minister Modi pursued India’s strategic and economic interest in several important bilateral meetings including with the US and Japan, primarily focussing on trade, defence and security issues; discussed the prospects of Japan-America-India strategic cooperation in the Indo-Pacific; discussed challenges to the mutli-polar world in the Russia-India-China meet and focussed on commitment to multilateralism,developmental cooperation and counter-terrorism in the BRICS meeting. The Indian Prime Minister has extended invitation to the G20 leaders to join the International Coalition for Disaster Resilient Infrastructure. India is scheduled to host the G20 summit in 2022.
Script: Dr. Titli Basu, Strategic Analyst on East & South-East Asia

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