The G7 Summit 2021: What you need to know

June 12, 2021

• Topical

With protests planned by Extinction Rebellion and the erection of artwork depicting the
world leaders made from electronic waste, the meeting of world leaders in Cornwall over
the weekend for the G7 Summit has caused quite a stir. Milly, our intern, has written below what you need to know.

What is the G7 Summit and why does it exist?

Set up in 1975, G7, which stands for Group of Seven, is the made up of the worlds so called
‘advanced economies’, which includes the UK, USA, Canada, Japan, Germany, France and
Italy. It has previously had 8 members, but Russia were removed in 2014 after its takeover
of the Crimea. This year Australia, South Korea and India have been asked to join the
summit as guests.

It was originally set up as a means for leaders of these industrial nations to meet informally
and discuss their shared values the development of the global economy. Its role has since
developed and it has become a platform for leaders to discuss key global issues and
formulate united political responses. Leaders meet annually, and discussions often centre
around political, financial, and climate issues.

What are the Key issues this year?

After a hiatus last year due various lockdowns, this year will be the first time world leaders
have met since their nations were hit by COVID-19. This is sure to be a crucial talking point
amongst leaders as they look to recover the economy. A key issue will of course be vaccines,
with significant pressure on leaders to produce a detailed and well-funded vaccination plan
to vaccinate lower income countries. Since most countries attending the Summit have
already vaccinated large proportions of their adult populations, the pressure is on to
provide the rest of the world with similar provisions.

Foreign policy issues will also likely take centre stage, especially in regards to China and
Russia. After a meeting last month, G7 foreign ministers were said to be ‘deeply concerned’
about the ‘negative pattern of Russia’s irresponsible and destabilising behaviour’. Thus, the
summit is an opportunity to demonstrate democratic solidarity in the face of this. Equally,
leaders will be keen to find further ways to cooperate in order to combat and dilute the
increasing Chinese influence.

Another issue that will undoubtedly be discussed is climate change. Since the Biden
administration has re-entered the Paris agreement, climate talks will perhaps be more
successful this year after limited gains were made at the previous G7 summit. There is
certainly significant pressure with protests and rallies organised and Johnson will be keen to
get some global policy started ahead of the Cop26 climate summit in Glasgow this
November.

Furthermore, G7 finance ministers signed an agreement last week laying the groundwork
for a tougher global tax regime, so discussion surrounding this agreement is certainly on the
agenda. The agreement will make it harder for multinationals to play different jurisdictions off against each other, since it has set a minimum rate of 15%. Critics of the agreement argue that rate should be higher, (notably Biden proposed a rate of 21%) so it is likely this will be an area of debate.

Lastly, Brexit minister Lord Frost’s appearance in Cornwall seems to indicate that Brexit will
be a talking point. Johnson has already stated that he wants to prioritise other global issues,
but it unlikely that Brexit will go without mention. Discussion on Brexit is perhaps going to
focus on the implementation of Northern Ireland protocol.

How much power does G7 actually have?

In theory, the power of G7 is actually incredibly limited, as the decisions taken at this
summit are not legally binding. However, these nations have a tremendous amount of
influence, (as of 2018 G7 represented over 58% of the worlds worth) meaning that the
policy agreements made can and do have real effect. Their influence has been evident
previously, with G7 playing a significant role in in setting up the global fund to fight malaria
and aids in 2002.

Why is it held in Cornwall?

Every year the summit is hosted by a different member state, the last one being hosted in
the French town of Biarritz. This year it is the UK’s turn to host and it is being held in Carbis
bay in Cornwall. This choice is interesting as the government website described it as a
‘powerhouse for green innovation’, so it hosting it there will allow them to show off their
green credentials to the world. It is also a cleverly symbolic choice, highlighting the need for
innovation and climate conscious decisions as the world prepares to rebuild its economies
post pandemic.

With everything that has happened in the past couple of years, the G7 summit presents and
important opportunity for these global leaders to come together and formulate coordinated
responses to global problems. The decisions made here have the capacity to shape the
future and so it will be interesting to see what the legacy of Carbis Bay will be. Equally, there
is always a fair share of uncomfortable moments and photos to enjoy.