The finance ministers and central bank governors
from the G-7 countries called for a resumption of the stalled Doha Round of
global trade talks and expressed their concern at risks posed by hedge funds to
the global financial market.
In a communique following their two-day meeting in the western German city of
Essen, the ministers and bank chiefs urged more trade liberalization and less
"We remain committed to resisting protectionist sentiment and fully support
the re-launch of the Doha trade negotiations announced in Geneva," they said.
The Doha Round began at a ministerial-level meeting in Doha, Qatar in 2001,
and has been top agenda of subsequent ministerials in Cancun, Mexico (2003), and
Hong Kong, China (2005), aiming at removing trade barriers.
"We firmly believe that all participants have the responsibility to ensure a
successful outcome of the Doha round as it will enhance global growth and
contribute to poverty reduction,?? the statement said.
The negotiations have been stalled by disputes over farm subsidies and
tariffs between the developed nations led by the European Union, the United
States and Japan and the major developing countries.
Earlier, speaking of the Doha Round in his speech at the meeting, Chinese
Finance Minister Jin Renqing urged the developed nations to realize the special
treatment for the developing economies because that this round is for
In their communique, the officials from the G-7 countries also voiced their
concerns about the risks posed to global financial markets by hedge fund
"Given the strong growth of the hedge fund industry and the instruments they
trade, we need to be vigilant," they said. "We therefore agreed to further
pursue the issue."
German Finance Minister Peer Steinbrueck said on Friday that there should be
a registration of all the highly speculative funds that operate with foreign
He urged hedge funds managers to show greater awareness of the political
consequences of their dealings. "The result is a serious financial crisis. This
cannot be ruled out," he said.
Besides Jin, finance ministers from Brazil, Mexico, India and South Africa
also attended the discussion with the ministers from G-7, which comprises
Britain, Canada, France, Germany, Italy, Japan and the United