From UPSC perspective, the following things are important :
Prelims level : G7
Mains level : Digital Trade Principles
The Group of Seven wealthy nations agreed on a joint set of principles to govern cross-border data use and digital trade.
What are the Digital Trade Principles?
- Open digital markets: Digital and telecommunications markets should be competitive, transparent, fair, and accessible to international trade and investment.
- Cross-border data flows: To harness the opportunities of the digital economy and support the trade of goods and services, data should be able to flow freely across borders with trust.
- Safeguards for workers, consumers, and businesses: Labour protections must be in place for workers who are directly engaged in or support digital trade, providing decent conditions of work.
- Digital trading systems: To cut red tape and enable more businesses to trade, governments and industries should drive forward the digitization of trade-related documents.
- Fair and inclusive global governance: Common rules for digital trade should be agreed and upheld at the World Trade Organization.
About Group of Seven
- The G-7 or ‘Group of Seven’ includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
- It is an intergovernmental organization that was formed in 1975 by the top economies of the time as an informal forum to discuss pressing world issues.
- Initially, it was formed as an effort by the US and its allies to discuss economic issues.
- The G-7 forum now discusses several challenges such as oil prices and many pressing issues such as financial crises, terrorism, arms control, and drug trafficking.
- It does not have a formal constitution or a fixed headquarters. The decisions taken by leaders during annual summits are non-binding.
- Canada joined the group in 1976, and the European Union began attending in 1977.
Evolution of the G-7
- When it started in 1975—with six members, Canada joining a year later—it represented about 70% of the world economy.
- And it was a cosy club for tackling issues such as the response to oil shocks.
- Now it accounts for about 40% of global gdp.
- Since the global financial crisis of 2007-09 it has sometimes been overshadowed by the broader g20.
- The G-7 became the G-8 in 1997 when Russia was invited to join.
- In 2014, Russia was debarred after it took over Crimea.