Exclusive to BCA Research from Cabos, Mexico
T he G20 summit in Los Cabos, Mexico is taking place after November’s largely ineffective Cannes summit and amidst extremely high political constraints in nearly every relevant country. This is not a summit that can deliver big results.
The meeting is unlikely to produce grand solutions, as there are no more ‘low hanging fruits’ available for the G20.
However, three key themes emerged so far at Day 1:
- Europe vs. the Markets: European policymakers came to the G20 promising results at the upcoming June 28 EU Summit, pointing out that there exists a strong commitment in Europe for fiscal as well as political union. However, the press conference seemed to be a plea for more time from the markets rather than a clear roadmap.
- China on the Moral High-ground: Beijing feels that it has done its part since Seoul (November 2010) and that it is now up to the Developed Economies to do their part for economic stability.
- Japan Moves on Higher Consumption Tax: Japan has used commitments at the G20 as a way to move domestic policy at home, with the consumption tax increase likely to follow closely.
Associate Professor, Dept of Poli Sci, UBC
Senior Fellow, Global Summitry Project at the Munk School of Global Affairs.