G20 (Summit on Financial Markets and the World Economy)

G20 Hangzhou Summit – Individual Sessions

September 5, 2016

Session 1: Strengthening Policy Coordination and Breaking a New Path for Growth

(1) The leaders exchanged views on how the G20 can strengthen policy coordination on the various risks facing the global economy, including potential volatility in the financial markets, fluctuations of commodity prices, sluggish trade, geopolitical developments, terrorism and refugees, and the uncertainty arising from the outcome of the referendum on the UK's membership of the EU.

(2) The G20 confirmed its determination to use all policy tools - monetary, fiscal and structural - individually and collectively to achieve its goal of strong, sustainable, balanced and inclusive economic growth. 

(3) The leaders reiterated that excess volatility and disorderly movements in exchange rates can have adverse implications for economic and financial stability. They reaffirmed their previous exchange rate commitments (including that they will refrain from competitive devaluations and will not target exchange rates for competitive purposes).

(4) Along with structural reforms, issues such as innovation, the new industrial revolution and the digital economy were taken up, and the G20 Blueprint on Innovative Growth was issued in connection with these areas.

[Overview of the Statement by Prime Minister Abe]
  • Prime Minister Abe explained under the belief that the G7 had to share a sense of concern over the downside risks in the global economic outlook and the need to drive the economy forward, as the G7 Chair he compiled the G7 Ise-Shima Economic Initiative where G7 made a powerful commitment to use all policy tools, individually and collectively. 
  • Furthermore, Prime Minister Abe stated that the G20 overall, including emerging countries, should share a sense of concern and lead the concrete efforts of each country, and both developed countries and emerging countries should unite and work together in order to return the global economy to a growth track. From this perspective, Prime Minister Abe introduced specific examples of efforts that Japan is taking the initiative in pursuing, such as comprehensive and bold economic measures, and explained that Japan will continue to act decisively in the future also.

Session 2: More Effective and Efficient Global Economic and Financial Governance

(1) With regard to financial governance, the leaders confirmed that growth, to be resilient, must be underpinned by effective and efficient global economic and financial architecture, and the G20 will continue its work in this regard. In particular, where international tax is concerned the leaders agreed to continue advancing international cooperation on tax, including promoting cooperation on the BEPS (base erosion and profit shifting), exchange of tax information, tax capacity-building of developing countries, and tax policies.

(2) With regard to corruption, the countries shared recognition of the detrimental effects of corruption and illicit finance flows on areas such as equitable allocation of public resources, sustainable economic growth, and the rule of law, and agreed to reinforce the G20's efforts to enhance international cooperation against corruption.

(3) Regarding energy, the G20 (I) committed to building open and transparent energy markets; (II) stressed the need for continued investment in energy projects; and (III) reaffirmed the importance of collaboration towards a cleaner energy future and sustainable energy security. Furthermore, the leaders agreed to work with Sub-Saharan and Asia-Pacific countries to improve universal energy access.

[Overview of the Statement by Prime Minister Abe]
  • Prime Minister Abe explained that Japan intends to lead global efforts on tax fairness, anti-corruption measures, and energy security, which underpin responses to risks and sustainable growth.
  • As Japan's specific initiatives, Prime Minister Abe cited (1) the progress with the BEPS that is being made under Japan's chairmanship of OECD Committee on Fiscal Affairs; (II) cooperation on enforcing laws on corruption and the necessary support on capacity building; and (III) maintaining and promoting investment amid slumping oil prices, establishing an international LNG market, and nuclear power safety, then mentioned concrete actions that the G20 should take in these fields.

Session 3: Robust International Trade and Investment

(1) The G20 noted with concern the slow growth in trade and investment globally, and committed to work toward trade and investment facilitation and liberalization, including (I) promoting the multilateral trading system; (II) opposing protectionism; and (III) promoting regional trade agreements and the free-trade agreements.

(2) As part of that, the leaders agreed to aim to conclude the Environmental Goods Agreement (EGA) negotiations by the end of 2016. 

(3) The leaders shared recognition that structural problems, including excess capacity in some industries, exacerbated by a weak global economic recovery and depressed market demand, have had a negative impact on trade and workers, and excess capacity in steel and other industries is a global issue. The leaders agreed to promote information sharing and cooperation through the formation of a Global Forum with the participation of major steel producing countries.

[Overview of the Statement by Prime Minister Abe]
  • Prime Minister Abe mentioned the importance of the G20 reaffirming its commitment to fighting protectionism and taking concrete actions to broaden free and fair economic zones worldwide. 
  • With regard to excess capacity in the steel industry and other industries, Prime Minister Abe pointed out that the market distortion arising from support measures such as subsidies and export credit is a fundamental problem, and expressed his wish to encourage structural reforms that conform to market mechanisms through dialogue at the Global Forum, in which major producer countries will participate, while ensuing transparency.
  • Prime Minister Abe explained that Japan overcame political difficulties to reach an agreement on the Trans-Pacific Partnership (TPP), and he asked that the momentum to bring the TPP into effect not be stalled, along with expressing Japan's intention to promote ambitious economic partnerships with various countries in the future, such as the Japan-EU Economic Partnership Agreement (EPA) and the Regional Comprehensive Economic Partnership (RCEP). Prime Minister Abe noted in particular that the EGA negotiations have just reached the landing zone and expressed his hope to accelerate the negotiations in order to conclude the agreement by the end of 2016.
  • Additionally, Prime Minister Abe stated he would like to reconfirm the preservation of freedom of navigation and over flight at sea, and adherence to the rule of law, which support international trade.

Session 4: Inclusive and Interconnected Development

(1) The G20 welcomed the G20 Action Plan on the 2030 Agenda for Sustainable Development, which assembles the G20's comprehensive efforts and each country's voluntary actions. 

(2) The leaders reaffirmed their commitment to promote infrastructure investment with a focus on infrastructure in terms of both quantity and quality. They stressed the importance of quality infrastructure investment, including (i) economic efficiency in view of life-cycle cost; (ii) safety; (iii) resilience against natural disasters; (iv) job creation; and (v) capacity building and transfer of expertise and know-how, (which were characterized as pillars in the G7 Ise-Shima Principles for Promoting Quality Infrastructure Investment).

[Overview of the Statement by Prime Minister Abe]
  • Prime Minister Abe stated that the G20 should issue a powerful message on domestic implementation and international cooperation in order to achieve the 2030 Agenda, and he welcomed the G20 Action Plan. He also explained that Japan set up the Sustainable Development Goals (SDGs) Promotion Headquarters in May and to strengthen its efforts.
  • With regard to infrastructure, Prime Minister Abe explained that an agreement was reached on the "principles" of quality infrastructure investment at the G7 Ise-Shima Summit, and over the next five years Japan will implement quality infrastructure investments totaling around 200 billion dollars worldwide in order to support sustainable growth. 
  • With regard to health, Prime Minister Abe emphasized the importance of (i) strengthening responses to public health emergencies such as infectious diseases; (ii) promoting Universal Health Coverage (UHC), which also contributes to prevention of and preparedness for emergencies; and (iii) strengthening responses to antimicrobial resistance (AMR). 
  • With regard to Africa, Prime Minister Abe emphasized that Africa is a key to achieve SDGs, and explained that the Sixth Tokyo International Conference on African Development (TICAD VI) took place at the end of August for the first time in Africa, along with introducing its concrete outcomes. 

Session 5: Further Significant Global Challenges Affecting the World Economy

(1) The leaders confirmed they will proactively address the potential economic and financial consequences stemming from the outcome of the referendum on the UK's membership in the EU. 

(2) The leaders committed to completing their respective domestic procedures in order to join the Paris Agreement as soon as their national procedures allow, and welcomed efforts to enable the Paris Agreement to enter into force by the end of 2016.

(3) The leaders reiterated their call for concerted efforts in addressing the effects, protection need and root causes of refugee crises, and agreed to call for strengthening humanitarian assistance and development support for refugees.

(4) The G20 countries shared recognition that terrorism endangers sustainable growth of the economy, and along with reaffirming their solidarity and resolve in the fight against terrorism, they agreed to tackle all sources, techniques, and channels of terrorist financing.

(5) The leaders shared awareness of the serious threat that antimicrobial resistance (AMR) poses to public health, growth, and global economic stability, and affirmed the need to explore ways to unlock research and development into new necessary antimicrobials.

[Overview of the Statement by Prime Minister Abe]
  • At the beginning of the remark at Session 5, Prime Minister Abe explained that North Korea launched three ballistic missiles simultaneously in that morning, all of which fell into Japan’s exclusive economic zone (EEZ). He stated that North Korea’s repeated ballistic missile launches violate and directly challenge the relevant United Nations Security Council (UNSC) resolutions and pose a grave threat to the security of the entire region, and that the international community should respond firmly, including at the UNSC, to such unforgivable provocation , which was carried out while the leaders gathered at the G20 Summit.
  • With regard to terrorism, Prime Minister Abe stated that terrorisms which rob large numbers of innocent citizens of their lives can never be tolerated, and resolutely condemns them. He further stated the G20 must strengthen collaboration on measures to combat terrorist financing, support the enhancement of counterterrorism capabilities in developing countries, and promptly take measures to counter the violent extremism that is the source of terrorism, and to this end Japan will also make the utmost efforts. 
  • Prime Minister Abe introduced Japan's most recent initiatives and assistance related to the refugee issue, and stated that along with urgent efforts such as humanitarian assistance, the G20 should engage in mid-long term efforts to promote addressing the root causes which destabilize the Middle East. He emphasized the importance of promoting the reconstruction and development of countries in the Middle East, including tackling issues such as poverty, disparity and the employment problem of the young. 
  • With regard to climate change, Prime Minister Abe emphasized that Japan will also make its utmost efforts to promptly ratify the Paris Agreement toward its entering into force by the end of 2016, and furthermore, explained that he would like to formulate guidelines for implementing the Agreement in a way that secures constructive contributions from all countries and further enhances the effectiveness in reducing emissions.