Treasurer Jim Chalmers has joined his counterparts from the United States, United Kingdom, Canada and New Zealand in calling for co-operation within the face of the “threat and use of economic coercion”.
At a gathering of the Five Finance Ministers, chaired by US Treasury Secretary Janet L. Yellen, views on world financial challenges have been swapped.
While the main focus of the assembly was across the ongoing financial ramifications of Russia’s unlawful conflict on Ukraine, and the continuing provide chain constraints brought on by China’s Covid-19 administration, the group additionally mentioned the risk – and use – of financial coercion.
In a readout, Secretary Yellen mentioned she had “underscored the importance” of shut co-operation amongst companions and allies “to secure our economies”.
“The ministers also discussed the need for co-operation to respond to the threat and use of economic coercion,” the readout mentioned.
“The ministers look forward to future engagements and reaffirmed their commitment to deepen co-operation to further shared priorities in the Indo-Pacific and beyond.”
Discussions of financial coercion have ramped up in recent times, and simply final week Japan – as the present head of the G7 – known as on the group’s different members to take a co-ordinated strategy in cracking down on China’s “economic coercion”.
China’s financial strikes in recent times, resembling suspending imports of Australian coal and wine, and Taiwanese pineapples, prompted Japan’s Economy Minister Yasutoshi Nishimura to name the actions a “clear and present danger” for world economies.
Secretary Yellen mentioned the group had mentioned the necessity to develop larger resilience in opposition to world provide chain disruptions brought on by Russia’s conflict, the continuing results of the Covid-19 pandemic, and different components”.
In his personal assertion, Dr Chalmers mentioned the assembly was a “really valuable opportunity” to debate the present state of the worldwide financial system, and look to how we will work collectively to answer challenges”.
“While each of our nations enters 2023 from our own unique position, we all realise this year is going to be a very tough one for our economies and the global economy more broadly,” he mentioned.
“Co-operation through the Five Finance Ministers group is especially valuable given the uncertain global environment – the insights gleamed from engagements like this one will assist as we continue to prepare for the May Budget over coming months.”
