Purpose and Functioning
The formation of G20, which is the fundamental platform for international economic cooperation, was agreed at G-7 Finance Ministers and Central Bank Governors Meeting held on September 25, 1999, in Washington.
The founding objectives of G20 are as follows:
-ensuring increased-representation of emerging market economies having more importance and influence in the global economic governance in the aftermath of 1994 Mexico peso crisis, 1997 Asian crisis and 1998 Russian crisis.
- Providing a forum for unofficial discussion and exchange of views so that global economic and fiscal stability can be ensured and encouraged.
G20 platform whom Turkiye is a member brings together emerging market economies and developed countries. G20 is composed of the United States, Germany, Argentina, European Union, Australia, Brazil, China, Indonesia, France, South Africa, Korea, India, United Kingdom, Italy, Japan, Canada, Mexico, Russian Federation, Saudi Arabia and Turkiye.
G20 countries having special importance for global economic and financial system account for more than 80 % of global GDP, 75 % of global trade and 60 % of world population.
In G20, which has no permanent secretariat, Term Presidency and the establishment of general secretariat are undertaken by a member from a different region within the Group each year. In this regard, Presidency is carried out by a “troika” composed of predecessor, incumbent and successor presidencies. Turkiye assumed G20 Term Presidency in 2015.
Due to the outbreak of financial market fluctuations on July 2007 in USA, its spread to the most of the world and its threat on global economy, G20 upgraded to the Leaders’ level in 2008. In this context, first G20 Leaders Summit was organized in November 2008 in Washington. 2021 Leaders Summit was held on 30-31 October in Rome.
2022 Indonesian Term Presidency’s Trade and Investment Agenda
Indonesia took over G20 Term Presidency from Italy on December 1st, 2021. Indonesian Presidency’s main theme is “Recover Together, Recover Stronger”. “Global Health Architecture”, “Digital Transformation” and “Sustainable Energy Transition” constitute Indonesian Presidency’s priorities. Through these three pillars, Indonesia will continue to take the lead on ensuring equitable access to COVID-19 vaccines, promoting sustainable and inclusive economic development through MSMEs participation and digital economy.
In order to strengthen G20 works in the industrial sector, Indonesia decided to expand the scope of Trade and Investment Working Group into the formation of G20 Trade, Investment, and Industry Working Group.
Priority Issues under Trade and Investment Agenda
- Stronger Multilateral Trading System for A Robust Global Recovery
- The central role of the multilateral trading system;
- The WTO should come up with concrete actions to support the global economic recovery.
- Multilateral trading system should also envisage the need for evolving trade issues in the post-pandemic era.
- Creating Resilient, Inclusive and Sustainable Economic Recovery
- Spurring Sustainable Investment to Accelerate Global Economic Recovery
- Industry 4.0 to Support Inclusive and Sustainable Industrialization
Global Forum on Steel Excess Capacity-GFSEC
GFSEC was formed on December 16, 2016 during the G20 German Presidency. Forum is composed of 30 members (GFSEC members which are OECD countries: Austria, Belgium, Finland, Greece, Hungary, Lüksembourg, Netherlands, Norway, Poland, Slovak Republic, Spain, Sweden, Switzerland. GFSEC members which are G20 countries: Argentina, Australia, Brazil, Canada, EU, France, Germany, India, Italy, Japan, Mexico, Russian Federation, South Africa, Korea, Turkiye, United Kingdom, USA). At the outset, GFSEC was formed for three years period (2016-2019). In 2019, the duration of GFSEC was extended until the end of 2022.
Global Forum aims to:
- ensure information/data sharing among GFSEC members regarding nominal crude steel capacity developments, government policies, practices and measures affecting crude steel markets,
- take effective steps to reduce excess capacity,
- strengthen the functioning of steel markets.
China and Saudi Arabia as G20 members opted out of the membership of GFSEC in 2020-2022 period. India did not participate into GFSEC work since 2020. In 2021, Indonesia decided not to continue its participation in the GFSEC.
Forum is governed by a Steering Committee, which is composed of the eight largest steel producer countries (EU, Japan, India, USA, Russian Federation, Korea, Brazil and Turkiye) and the incumbent G20 Presidency. The chairmanship of the Forum is conducted by the incumbent G20 Presidency and co-chairs (two members of the Forum). In light of the 2022 G20 Presidency’s non-participation in the GFSEC, Brazil and Germany will be GFSEC co-chairs in 2022. Germany is not a member of the Steering Committee, In this regard, GFSEC agreed to derogate from the provisions of Terms of Reference so that Germany can serve as co-chair of the GFSEC until the end of 2022.
In 2022, GFSEC work will continue to focus on excess capacity as well as decarbonization of the steel sector.