G-7 GROUPOFSEVEN

INTRODUCTION The G7's precursor was the 'Group of Six'. It was founded ad hoc in 1975, consisting of finance ministers and central bank governors from France, West Germany, Italy, Japan, the United Kingdom and the United States.

The G7 countries represent more than 64% of the net global wealth ($263 trillion). A net national wealth and a very high Human Development Index are the main requirements to be a member of this group.

The G7 countries also represent the 46% of the global GDP evaluated at market exchange rates and the 32% of the global purchasing power parity GDP.

PURPOSE The organization was originally founded to facilitate shared macroeconomic initiatives by its members in response to the collapse of the exchange rate 1971, during the time of the Nixon Shock, the 1970s energy crisis and the ensuing recession.

OBJECTIVE1. To identify and work together on

issues pertaining to security ,economies , climate change , Peace, geo political issues.

2. Develop framework for regulation for the above issues.

MEMBER COUNTRIES The Group of 7 (G7) is a group consisting of Canada, France, Germany, Italy, Japan, United Kingdom, United States. The European Union is also represented within the G7. These countries are the seven major advanced economies as reported by the International Monetary Fund.

G-7 (MAP)

IMPACT OF G-7 ECONOMIC

INTEGRATION ON TRADE OF MEMBER

COUNTRIESASSIGNMENT-2

CANADA: TRADE, INCOME & PRICES AFTER G-7

FRANCE: TRADE, INCOME & PRICES AFTER G-7

GERMANY: TRADE, INCOME & PRICES AFTER G-7

ITALY: TRADE, INCOME & PRICES AFTER G-7

JAPAN: TRADE, INCOME & PRICES AFTER G-7

UNITED KINGDOM: TRADE, INCOME & PRICES AFTER G-7

USA: TRADE, INCOME & PRICES AFTER G-7

TREND LINE IN TRADE OF MEMBER

COUNTRIES WITH G-7 COUNTRIES

ASSIGNMENT-3

TRADE BETWEEN CANADA & G-7

CANADA

TERMS OF TRADE

TRADE BALANCE/GDP

1971 0.9305 0.03243678

1975 1.0654 -0.030481738

1980 1.0553 0.002459327

1985 0.9772 0.025317854

1990 1.0092 -0.001880776

1995 0.9773 0.039232459

2000 1 0.057731904

2001 0.9839 0.063514739

2002 0.9593 0.060939805

TRADE BETWEEN FRANCE & G-7

FRANCE TERMS OF TRADE

TRADE BALANCE/GDP

1971 1.2501 -0.021195158

1975 1.1171 -0.009219239

1980 1.0109 -0.016245042

1985 0.9648 0.000540335

1990 1.0524 -0.020332838

1995 1.0288 0.004568623

2000 1 0.009029585

2001 1.0063 0.009977287

2002 1.0327 0.009362304

TRADE BETWEEN GERMANY & G-7

GERMANY TERMS OF TRADE

TRADE BALANCE/GDP

1971 1.0379 -0.021099562

1975 0.9925 -0.01365184

1980 0.9143 -0.023434917

1985 0.8759 0.008302514

1990 0.9943 -0.000627395

1995 1.0585 -0.009075291

2000 1 0.003515145

2001 0.9989 0.020468698

2002 1.0192 0.03973327

TRADE BETWEEN JAPAN & G-7

JAPAN TERMS OF TRADE

TRADE BALANCE/GDP

1971 1.3536 -0.002165885

1975 1.0014 n/a

1980 0.7305 0.016624474

1985 0.823 0.033400907

1990 1.0379 0.004573434

1995 1.1307 0.003778246

2000 1 0.014303106

2002 0.9779 0.014648414

TRADE BETWEEN UK & G-7UNITED KINGDOM

TERMS OF TRADE

TRADE BALANCE/GDP

1971 0.987061749 0.011057722

1975 0.847524099 0.015581488

1980 0.944639598 0.024358341

1985 0.954036359 0.014718084

1990 0.953946835 -0.011210381

1995 0.940565193 0.01024476

2000 1 0.020566814

2002 1.021599376 -0.038240165

TRADE BETWEEN USA & G-7

USA TERMS OF TRADE

TRADE BALANCE/GDP

1971 0.384672287 -0.0157382181975 0.142462274 -0.0005611531980 0.918526629 0.0024571021985 0.035868836 -0.0235401741990 0.963017775 -0.0077391931995 0.980741038 -0.0088927342000 1 -0.038864082002 1.030628408 -0.047099312

ORGANIZATIONAL STRUCTURE &

WORKING MECHANISM OF G-7

ASSIGNMENT-4

INTRODUCTION1. Group of Seven (G7), international organization officially established

in 1985 to facilitate economic cooperation among the world's largest industrial nations; summit meetings of the member nations began in 1975.

2. Members are Canada, France, Germany, Great Britain, Italy, Japan, and the United States. Representatives of the European Commission also have attended G7 meetings since 1981.

3. The G7 discusses and coordinates its members' actions on economic and commercial matters and works to aid the economies of other nations.

4. The leaders of the G7 nations meet annually in member countries. The Group of Eight (G8), which consists of the G7 nations plus Russia, was officially established in 1998, although Russia began participating in some G7 meetings earlier in the 1990s.

5. G7 nations continued to meet without Russia on certain issues.

MEMBERSHIP The Group of seven ( formerly the G6) is a forum, created by France in 1975, for the government of six major countries i.e. is France, Germany, Italy, Japan, the United Kingdom and the United States.

In 1976, Canada joined the group (thus creating the G7). In 1997, the group added Russia thus becoming the G8.

Member nations are generally expected to have highly-developed economies and be democracies.

The G7, unlike the United Nations, is not an organization or institution, and there is no formal charter or secretariat.

FUNCTION OF G-7 Its function is fine tuning of short term economic policies among participant countries to monitor developments in the world economy and assess economic policies.

WORKING MECHANISM An annual Summit at which the Heads of State and Government of the member countries hold talks with a view to finding solutions of the main world issues.

France, the United States and Russia are represented by their Heads of State, the United Kingdom, Germany, Japan, Italy and Canada are represented by their respective Heads of Government.

The seven members meet once a year at Heads of State and Government level.

Meetings are intended to foster consensus on global issues such as economic growth and crisis management, global security, energy, and terrorism.

PRESIDENCY & SUMMIT1. The G7 is chaired on rotational basis for a period of one

year in the order of France, United States, United Kingdom, Russia, Germany, Japan, Italy and Canada.

2. The European Union participates in the G7 as an observer; it is represented at the Summit by the President of the European Council and the President of the European Commission.

3. The country that has the presidency organizes and hosts the Summit.

4. France has hosted the summit on six occasions, in 2011 also it had hosted the summit .

SUMMIT1. It is the meeting of the representatives of the

member countries organized on annual basis.

2. It provides an opportunity for direct and informal discussion among the leaders on key issues.

3. It results in the adoption of a political statement, possibly accompanied by additional statements, sectoral action plans.

4. For the last few years G7 had been inviting rep. of African and other countries.

EUROPEAN MIGRANT CRISIS The European migrant crisis or European refugee crisis began in 2015, when a rising number of refugees and migrants made the journey to the European Union to seek asylum, travelling across the Mediterranean Sea, or through Southeast Europe.

Syrian (48%), Afghani (21%) Iraqi (9%). Migrant crisis creates test for idea of borderless Europe

EU MIGRANTSSea and land arrivals to the EU

in 2014 by nationality Syria 79,169 Eritrea 34,586Unspecified sub-Saharan nationals 26,341

Afghanistan 22,132 Kosovo 22,069 Mali 10,575 Albania 9,323 The Gambia 8,730 Nigeria 8,715 Somalia 7,676Others 54,216Total 283,532

EU MIGRANT CRISIS IMPACT ON TRADE of EU 1. TIGHTER border controls triggered by the influx of

migrants to Europe are clogging up trade and driving up costs for transport companies forced to seek other routes.

2. As number of migrants are increasing therefore the cost of their asylums are also on a rise which indeed is also increasing the prices of European Products.

3. Amid record numbers of migrants in Europe, freight is being disrupted and thousands of drivers are experiencing chaos every day.

4. Germany, Austria and Slovenia have placed controls on borders, while Hungary and Croatia have closed parts of country lines altogether, creating huge diversions for traffic. 

EU MIGRANT CRISIS IMPACT ON TRADE of EU 1. Lorry loads of cargo such as food and medical

supplies were destroyed 2. Delays caused by border closures had a crippling

effect on vital deliveries3. Report found that continued flow of migrants will

have more severe effects.

EU MIGRANT CRISIS IMPACT ON TRADE OF G-7 European migrant crisis cost British business £660million last year as vital trade routes ground to a halt with G7.

Due to Change in direction of sea routes transport costs are increasing which are reducing trade between G-7 & European Union.

Intra Trade between EU has reduced which increases pressure on G-7 countries for supplying their goods in the EU countries.

RUSSIA & G-7 ASSIGNMENT-

6

HISTORYthe 1971 collapse of the Bretton Woods system of fixed international exchange rates tied to the price of gold.the 1973 oil crisis.the need for better coordination of economic and financial policy at the highest level became evident.On March 25, 1973, the finance ministers of Britain, France, Germany and the United States (US) met and formed the “Library Group,” named after the venue of their initial meeting — the White House Library.In September of that year, they were joined by the Japanese finance minister, and this group was made as G-5.

HISTORYIn 1976, the group was expanded to seven, with the addition of Canada & Italy and has met 36 times in total.Beginning in the early 1990s, Russia began participating in some of the sessions with G7 leaders during their summits and, at the invitation of the G7, Russia formally joined the group in 1997. The G7 thus became the G8.

AFTER RUSSIA JOINING IN G-7 The initial composition of the group clearly represented the dominant economic powers of the day, and these countries shared the additional characteristics of being democratic, largely “Atlantic-oriented” and militarily allied to the United States. The “club” was relatively small, and the heads of government knew each other reasonably well. The opportunity to talk informally (the use of first names being common) and directly to counterparts was viewed as invaluable, as was the political profile afforded by the regular summits. In retrospect, the addition of Russia now seems anomalous, but at the time, efforts were being made to encourage Russia to become a free market liberal democracy with a commitment to the international processes and norms that the G7 considered acceptable. This attempt to secure good behavior through co-option has been only a partial success — Russia remains different from the original seven both politically and economically.

WHY RUSSIAN FEDDERATION WAS OUT OF G-8?

Until last year, the G7 used to be the G8. But then Russia decided to invade Ukraine, so it was booted from the group.

EFFECT ON RUSSIA AFTER BEING OUT OF G-8Sanctions followed, and the Russian economy took a tumble.Inflation hit 15.8 percent this past May, while GDP fell 4.2 percent year-on-year in April. The ruble has lost 11 percent of its value against the US dollar in the last month alone. Food prices are soaring: 50 percent of Russians have reduced consumption since sanctions began, and 20 percent say they have no disposable income left after paying for food and shelter.

PRESENT SITUATION IN RUSSIA

Yet Russia remains in Ukraine, and Vladimir Putin remains undaunted. The G7 announced at the summit that sanctions will remain in place so long as Putin ignores the Minsk ceasefire agreement brokered in February… and that was pretty much it. So for those wondering, the crisis in Ukraine continues.

USA TRADE WITH RUSSIA

Year ExportsMillions of USD

ImportsMillions of USD

2011 8318.4 34619

2012 10695.3 29364.8

2013 11144.5 27085.7

2014 10752.8 23658.1

2015 7086.7 16561.7

FRANCE EXPORTS TO RUSSIA

FRANCE IMPORTS FROM RUSSIA

SANCTIONS & EFFECTS ON & BY RUSSIA & FRANCERussian retaliatory measures: the one-year ban by Russia from August 2014 on imports from an itemized list of agrifood products in response to Western sanctions has, according to French Customs, caused a 23% fall in French exports of agricultural and agrifood products to Russia from €760 million in 2013 to €586 million in 2014;Western sanctions against Russia, which have virtually stalled financial exchanges between Russia and the EU with a direct effect on projects of French companies in Russia in the three sectors concerned (defence, financial and energy sectors), and an indirect effect (postponement of investment decisions);The fall in oil prices (-50% in one year) and of the ruble, which has negatively impacted French companies in Russia as their development was partly based on the dynamics of consumption in Russia.

GERMANY TRADE WITH RUSSIA German Trade with Russia Collapsing: 22% Dive in 1 Year

The EU's anti-Russian sanctions are having a severe effect - just not on Russia

http://russia-insider.com/en/german-trade-russia-falls-another-22/ri11720

Germany’s exports to Russia decreased in September 2015 by another 22 % compared to the corresponding month in 2014. Imports from Russia to Germany declined by 29% according to a report from Germany’s Federal Statistical Office.

EU trade sanctions became effective on the 23rd of June 2014, and the 31st of July, 2014, according to reports from a government trade organisation, “Germany Trade & Invest.”

CANADIAN SANCTIONS RELATED TO RUSSIA Sanctions related to Russia were enacted under the Special Economic Measures Act in order to respond to the gravity of Russia’s violation of the sovereignty and territorial integrity of Ukraine. On March 17, 2014, the Special Economic Measures (Russia) Regulations (“the Regulations”) came into force.

The Regulations impose an asset freeze on designated persons. They prohibit persons in Canada and Canadians abroad from:

dealing in any property held by or on behalf of a designated person, or facilitating or providing financial or other related services in respect of such a dealing;

making any goods available to a designated person; and providing any financial or related services to or for the benefit of a designated person.

CANADIAN SANCTIONS RELATED TO RUSSIA The Regulations also impose restrictions on certain sectors, like the financial and energy sectors. With some exceptions, they prohibit any person in Canada or Canadians abroad to deal in a loan, bond or debenture of longer than 90 days maturity in relation to certain designated persons, or to provide or otherwise deal in capital funding through the transaction of shares in exchange for an ownership interest in relation to certain designated persons.

Causing, assisting or promoting prohibited activities is likewise prohibited.

EXCEPTIONS Some exemptions exist, including for the following: payments made by or on behalf of designated persons pursuant to contracts entered to before their designation, provided the payment is not for their benefit;

pension payments to any person in Canada or Canadian abroad; certain transactions in respect of diplomatic missions; transactions to UN agencies, the International Red Cross and Red Crescent Movement, and Canadian NGOs in certain circumstances;

transactions necessary for a Canadian to transfer to a non-designated person any accounts, funds or investments held by a designated person when that person became a designated person;

financial services required in order for a designated person to obtain certain legal services in Canada; and

payments to any person in Canada or any Canadian abroad in respect of loans entered into prior to March 17, 2014.

EFFECT OF RUSSIAN SANCTIONS ON CANADA’S TRADE WITH RUSSIA Canadian exporters stung by Russia's currency crisis and its retaliatory sanctions against the West wonder what 2015 will hold for a market filled with promise less than 12 months ago.

Companies from farm-equipment manufacturers to pork producers spent much of 2014 adjusting to the economic instability in Russia, a country that bought $563 million worth of Canada's agricultural exports in 2012.

For some firms, the first half of 2014 had the hallmark of a banner year — and then sales evaporated.

A senior executive for one of Canada's biggest exporters to Russia said his company did about $250 million in annual business there in recent years, mostly selling frozen pork products.

JAPAN TRADE WITH RUSSIA The volume of trade between Japan and Russia in the first 10 months of 2015 decreased by 38 percent due to low oil prices & different sanctions by EU & other agencies, Japanese Ministry of Finance officials told TASS.

Bilateral trade between Russia and Japan in the first 10 months of 2015 stood at $17.7 billion, compared to $28.3 billion in the same period in 2014, according to the report.

ITALY TRADE WITH RUSSIA Anti-Russian sanctions have taken a toll on both sides, said Russian President Vladimir Putin to Italian Prime Minister Matteo Renzi, estimating the loss suffered by Italian arms manufacturers at €1 billion.

A NEW G-8 The G7’s influence is undoubtedly waning. Part of this can be attributed to global economic and population trends. In 1980, the G7 countries accounted for 61.1 percent of world GDP and roughly 13.85 percent of the global population. Today, the G7 countries are only responsible for 46.3 percent of global GDP output and house 10.5 percent of the world population. And these numbers are on course to continue their decline.

Complicating matters is that, in our globalized world, the responsibility divide between developed and emerging markets is blurrier than ever. To truly solve global problems, world leaders will have to work together with developing nations to tackle cross-border challenges like terrorism and climate change. The most obvious candidate for G7 inclusion is China. Adding China to the G7 would vault the group back to 61% of world GDP share and take it to 29.6% of the world’s population. That would make the G7 global again.

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