US to host further G-20 talks on war’s impact on food and fertiliser
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US Treasury Secretary Scott Bessent last week launched a push for the G-20 to take coordinated action alongside the IMF and World Bank to ensure that countries had access to urgently needed fertiliser.
PHOTO: REUTERS
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WASHINGTON – The US will host further talks in the coming weeks for the Group of 20 (G-20) major economies on the impact of the war in the Middle East on food and fertiliser, as it continues to push for coordinated action.
The US, the current chair of the G-20, will make the vow in a chair’s statement about a meeting of G-20 finance ministers and central bank governors held during the spring meetings of the International Monetary Fund (IMF) and World Bank on April 16.
A copy of the statement, released in lieu of a communique that would have required consensus by all members, was viewed by Reuters ahead of its official release later on April 20.
The statement said G-20 finance officials discussed a range of issues, including the economic impact of the war and its effect on agricultural markets, value chains and fertiliser, but stopped short of announcing an agreement for coordinated action to ensure fertiliser access amid war-related disruptions.
US Treasury Secretary Scott Bessent last week launched a push for the G-20, which includes Russia and China, to take coordinated action alongside the IMF and World Bank to ensure that countries have access to urgently needed fertiliser.
The IMF and others have cut their growth forecasts as a result of the war, which has sent energy prices sharply higher. They say supply chain disruptions caused by the war, especially to fertiliser shipments at the start of the growing season, could leave 45 million more people facing food insecurity.
The IMF expects at least a dozen countries to request new programmes with the global crisis lender as a result of the war.
A majority of G-20 members supported the US-led initiative, but a few were unable to confirm action by the end of the week, according to two senior officials briefed on the discussions. Staff-level engagements were slated to continue on the issue and build towards an “actionable consensus”, the officials said.
Details of the potential coordinated action were not disclosed.
The statement said many G-20 members raised the importance of efforts to keep food and fertiliser supply chains functioning, particularly for low-income and vulnerable countries, by not imposing export prohibitions or restrictions on fertilisers.
They also welcomed efforts by the IMF and World Bank to coordinate in order to maximise their responses to the economic impacts of the war.
IMF managing director Kristalina Georgieva said on April 17 that the two institutions would meet this week to assess requests for help from member countries and coordinate the best response.
Many members also committed to staying agile and flexible in their macroeconomic policy responses and cooperation. They discussed “the potential for coordinated action” to promote food security and support market stability, while emphasising the importance of diversified fertiliser production to buffer the poorest from disruptions in food trade supply chains.
Mr Bessent has streamlined the work of the G-20 under US leadership, halting a number of committees working on issues such as climate change and sustainability, while emphasising a focus on core macroeconomic issues.
A Treasury spokesman said Mr Bessent was determined to return the G-20 to “a more nimble, action-oriented group”, and that Washington looks forward to taking action alongside its G-20 partners. REUTERS
