G7 trade ministers hit out at China, Russia

TOKYO, Japan (AFP) – Group of Seven trade ministers took veiled swipes at China and Russia on Sunday while expressing concerns about the economic effect of the conflict in the Middle East.

A joint statement after talks in Japan slammed Russia's "destruction of Ukrainian grain export infrastructure" since it exited in July a deal that had allowed safe grain shipments via the Black Sea.

Without naming any country, the G7 statement also hit out at "actions to weaponize economic dependencies" and "noted with concern the recent export control measures on critical minerals".

China has been accused of using trade restrictions to pressure other countries politically and recently imposed export restrictions on certain types of graphite, key to making electric vehicle batteries.

This came days after the United States slapped fresh restrictions on outflows of high-tech microchips in an attempt to slow down China's work in artificial intelligence (AI).

In another apparent reference to China and Russia's bans on Japanese seafood imports since Tokyo began releasing treated waste water from the Fukushima nuclear plant, the G7 countries also said any restrictions should be "science-based and only applied in accordance with WTO (World Trade Organization) and other international rules."

The communique made no direct mention of the Middle East.

But Japan's Foreign Minister Yoko Kamikawa, who co-chaired the meeting in Osaka, told a news conference that there were also "concerns that uncertainties could further increase due to the latest situation in Israel and Palestine."

The G7 comprises current chair Japan, Canada, France, Germany, Italy, Britain, and the United States, as well as the European Union. Until 2014 it included Russia and was called the G8.

The talks in Osaka also included representatives from other countries including India, Australia, Chile, Kenya and Indonesia, international organizations and the private sector.

Australia's Trade Minister Don Farrell was expected to hold talks on the sidelines – reportedly on Monday – with EU Trade Commissioner Valdis Dombrovskis about a long-delayed free trade deal.

Farrell told Sky News Australia on Sunday that "at the moment the offer that's on the table isn't good enough. And I'm aiming to get a better one."