The G8 and G20
The Streit Council supports the G-8 as a core for broader international cooperation on global economic challenges. Although the G-20 has demonstrated its utility in coordinating financial regulatory reform, beginning to address global imbalances, and shaping a more inclusive and legitimate international order, its lack of cohesion has derailed attempts to facilitate progress on international trade and climate change. This was evidenced by its meetings in Toronto and Seoul, which produced no agreement on how to address these challenges.
As a smaller grouping with shared interests, values, and a stronger commitment to liberal democratic principles, the G-8 possesses the cohesion needed to address challenges that the G-20 cannot. By directing their efforts toward the creation of an OECD-wide regional trade agreement and carbon market, G-8 members would attain the leverage needed to conclude the WTO’s Doha Round of international trade negotiations and press greenhouse gas emitters (both within and outside this area) into reducing their emissions. In this way, the G-8 can use its cohesion to spur global action on international trade and climate change.