Finance Ministers Issue Joint Statement on Ceasefire and Global Economy
Finance ministers from eleven countries have issued a joint statement from Washington, D.C., addressing the announced ceasefire between the United States, Israel, and Iran and its implications for the global economy. The statement outlines a series of economic commitments and calls for international cooperation to mitigate risks to energy security and economic stability.
Participants and Context
The joint statement was issued by Treasurer Jim Chalmers of Australia and the finance ministers of the United Kingdom, Japan, Sweden, the Netherlands, Finland, Spain, Norway, the Republic of Ireland, Poland, and New Zealand. The statement was released from Washington, D.C.
Position on the Ceasefire and Conflict
The ministers stated they welcome the announcement of a ceasefire and called for its full implementation by all parties.
They noted that recent weeks have involved loss of life and disruption to the global economy and financial markets. The ministers called for a negotiated resolution to the conflict and a return to free and safe transit through the Strait of Hormuz.
They stated this is necessary to mitigate impacts on economic growth, energy prices, and living standards. The ministers further stated that renewed hostilities, a widening conflict, or continued disruption in the Strait of Hormuz would pose additional risks to global energy security, supply chains, and economic stability.
Coordinated Economic Commitments
In response to the situation, the ministers outlined several economic policy commitments:
- To manage the economic response and recovery in a coordinated manner.
- To ensure domestic fiscal responses are responsible and targeted.
- To reaffirm commitment to open, rules-based trade in energy products and to avoid protectionist actions, including export controls and trade barriers.
- To promote cooperation and reforms aimed at strengthening economic resilience and accelerating long-term energy diversification.
Role of International Institutions
The ministers welcomed the coordination group formed by the International Monetary Fund (IMF), World Bank, and International Energy Agency (IEA). They encouraged these institutions to develop a shared assessment of the global economic impacts.
The ministers also called on the IMF and World Bank to provide coordinated emergency support for vulnerable countries, with specific mention of small island states reliant on imported energy.
Reference to Ukraine Conflict
The statement also addressed the ongoing conflict in Ukraine. The ministers reaffirmed their support for Ukraine and their determination to maintain economic pressure on Russia.
They stated that Russia’s war in Ukraine continues to impact the global economy.