G7 Trade Ministers Pledge Tougher Measures Against Market Distortions

In a firm signal of their resolve, trade ministers from the Group of Seven (G7) democracies have declared their intention to employ 'trade tools' to address market-distorting practices, according to a new statement.

Meeting in southern Italy, the ministers underscored their commitment in response to the European Union's recent tariffs on Chinese electric vehicles, which are alleged to benefit from substantial subsidies. The six-page statement highlighted the need to tackle non-market policies, harmful excess capacities, and other forms of market distortion.

The G7 statement adopted more stringent language than a final communique issued after last year's meeting in Japan, aiming to discourage market protectionism. It emphasized the necessity of diversifying to reduce critical supply chain dependencies, implicitly referencing China's influence.

(With inputs from agencies.)