The recent G7 summit held in June 2021, marks its 47th year for the inter-governmental forum amongst the leading democracies, including the US, UK, Japan and the EU. Following the cancellation of the 2020 Summit due to the Coronavirus Pandemic, there seemed to be renewed vigour in the coordination of this year’s meeting, with guest invitations made to Australia, India, South Africa, and South Korea. With the UK holding the presidency, key takeaways include pledges made towards the global recovery from Covid-19, strengthening free trade, addressing climate change and reinforcing global democratic values. As a guest nation invited for its third consecutive year, Australia does not have negotiating rights at the Summit, but rather played its traditional supportive role as a middle power.
Tackling climate change and preserving the planet’s biodiversity
In the discussion of climate change, the Summit renewed its pledge for net zero emissions by 2050, following the same goal agreed in 2015 at the Paris Agreement. With a combined figure of approximately 45% of the world’s global GDP, the forum also promised to raise $2.8 billion to assist the transition away from coal emissions, as well as reaffirming its 2009 decision to raise $100 billion per year until 2025 to assist climate change mitigation in developing countries. However, as environmental critics continue to argue, such pledges lack the detail needed to place pressure on leading countries, including the financial aid each country will produce, with only Canada and Germany declaring exact figures. Further consensus is needed on how coal energy will be phased out and the new regulations implemented to cut the 20% of global carbon emissions that the G7 nations produce.
As reported by Climate Analytics, in comparison to similar economies, Australia’s greenhouse emissions are vastly higher. Given the country’s entrenched connection with fossil fuel industries, including coal and gas exports, it is unlikely that the decision from the Summit will place any conclusive pressure on Canberra and the Morrison government to implement a tangible climate and renewable energy policy. Clearly, when questioned on the climate issue, Prime Minister Scott Morrison chose to emphasise Australia’s position in the Summit as not ‘[being] a signatory’.
The global recovery from the coronavirus
It is needless to say that the Coronavirus Pandemic has resulted in widespread consequences for the globe, affecting a diversity of sectors ranging from health to economic trade. Against the backdrop for global recovery from Covid-19, a pledge of 1 billion vaccine doses towards countries in need was a major point of discussion, alongside preventative action for future pandemics. Australia’s foreign diplomacy has seen it aid neighbouring countries in the Indo-Pacific with the AstraZeneca vaccine, including recent assistance to Papua New Guinea. The vaccine roll out has been a controversial issue for Australia domestically, with the country currently ranking last out of the 38 OECD countries in the world. However, given the competition of vaccine diplomacy between Australia and China’s manufactured Sinopharm vaccine, the G7 agreement is likely to support Australia’s actions, presenting a united front to continue vaccine donation efforts.
The Morrison government has also used the trip to the UK to further its own economic recovery, negotiating a trade deal with Boris Johnson’s government. The large-scale tariff elimination that Australia has secured is unprecedented given its failure to do so in previous FTAs, not only with the UK but also surrounding Indo-Pacific partners and the US. Given the trade tensions Australia continues to face with China, this new deal will benefit Australia’s agricultural exports significantly.
Championing global shared values vis-a-vis China
The meeting of the G7 and the inclusion of guest democracies in the Indo-Pacific and Africa can be seen as a continued effort, led by the Biden administration, towards checking China’s regional hegemonic rise. Under key discussion points, most notably the ‘championing [of] global shared values’, it is clear that the Summit represents a further united effort to strengthen multilateral relations between the most powerful developed democracies, against the increasing threat that Beijing represents. The repeated call for an inquiry into the origins of the Covid-19 Pandemic (following the WHO investigation), as well as the condemnation of China’s human rights violations in Xinjiang and Hong Kong, follows an ongoing trajectory of international pressure against Beijing, including coordinated sanctions made by a number of key Western alliances, including that of the EU and UK. The focus on investment in and funding of developing countries to mitigate the harmful effects of climate change can also be read as a means to counter China’s influence with the BRI initiative.
Australia has long played a balancing game between the US and China. However, with the Morrison government, Australia’s stance against China has become increasingly hard-line, clearly aligning with its American counterpart. Since 2018, tensions have been rising between Australia and China. From choosing to ban Huawei from Australia’s 5G network (differing from other Western allies like the UK), to leading the call for the WHO inquiry into the beginnings of Covid-19, Canberra’s actions demonstrate its current support for Washington. Evidently, China’s retaliation in response to the call for the inquiry, taking the form of tariffs on Australian exports, has not deterred the Morrison government. With President Biden declaring that ‘America is back at the table’, and framing the current reality as a struggle between democratic and autocratic governments, harsher restrictions are likely to be implemented against China. This will inevitably raise the stakes for Australia. With its presence in the Indo-Pacific region key in strengthening multilateral relations, Australia will continue to play an integral role in the conflict. So far Prime Minister Scott Morrison has emphasised the G7’s ‘strong level of support for … Australia’s [stance]’.
The Chinese Embassy in the UK has issued a statement on the Summit, condemning the event as ‘pseudo-multilateralism serving the interests of a small clique or political bloc’. This has not deterred the ‘political bloc’ from moving forward, with the US, EU, UK, Japan, New Zealand and Australia recently uniting to accuse China of cyber espionage. It seems Australia will continue to participate in all modes of multilateral organisation for security and economic interests, balancing its proximity with China vis-a-vis the US.
