Australian Prime Minister Tony Abbott made a strong
public call at last week’s World Economic Forum in Davos, Switzerland, for G-20
members to put free trade “first” as they work to sustain the momentum of the
global economic recovery. Australia is the holder of this year’s G-20
presidency, taking the helm from Russia, with the annual leaders’ summit scheduled
for November in the city of Brisbane.
Developed countries have shown increasingly
consistent signs of improvement in recent months, and recent data also
indicates steadier growth in developing countries. Economists warn, however,
that this progress has yet to solidify into a lasting trend, and policymakers
should remain vigilant against potential risks.
The Group of 20 major industrialised and developing
economies declared itself the “premier forum” for global economic cooperation
during the early years of the financial crisis, a pledge that has since drawn
attention - and sometimes criticism - as to what should fall under the G-20
agenda and how effective its commitments are in practice. Abbott stressed in
Davos that this year’s summit, like last year’s, “must be more than a
talkfest,” promising to hold a “frank leaders-only discussion.”
In these talks, he said, trade should come first.
The Australian Prime Minister also said that G-20 members should continue
working to combat tax avoidance by large companies, increase infrastructure
investment, reduce unemployment, and improve financial sector resilience - all
major topics at last September’s summit in St. Petersburg.