‘Back to basics’: Canada leading talks on economic stability as G7 finance ministers meet in Banff.

BANFF, Alta. — Over the next two days, top finance officials from some of the world’s largest economies are meeting in Banff, Alta., to talk about pressing global financial issues in hopes of finding consensus amid tariff tensions.

A prelude to next month’s G7 Leaders’ Summit in nearby Kananaskis, what the finance ministers and central bank governors attending this week’s meetings manage to agree on will set expectations for what could be accomplished in June.

Finance Minister Francois-Philippe Champagne and Bank of Canada Governor Tiff Macklem are leading the meetings, which are being framed by the Canadian delegation as an opportunity to discuss issues impacting global economic stability and growth.

“I think this is a very consequential moment for the G7 and the world,” Champagne told reporters in Banff on Tuesday evening. “For me, it’s going back to basics … this is Canada setting the global agenda with our colleagues to make sure that we deliver for citizens.”

The finance minister’s central goal will be finding consensus on key policy priorities Canada has outlined as part of its G7 Presidency, such as economic security and artificial intelligence (AI) cooperation.

The real test will be whether Champagne can come out of the confab with a joint statement all countries sign, and what kind of language any co-endorsed release uses.

Kicking off with a Wednesday morning “family photo” outside a picturesque resort, the Group of Seven – Canada, United States, France, Italy, Germany, Britain, and Japan – will be attending eight working sessions, before a closing press conference on Thursday afternoon.

Among the topics up for discussion: recent international developments and risks to the economic outlook, enhancing economic resilience, global growth policies, development issues, risks and potential in AI, and financial crime.

The ultimate objective, according to officials who briefed reporters on background ahead of the summit, is to foster longer-term growth, address risks to the global economy, continuing support for Ukraine, and providing a platform for leaders to engage.

“If you look at the G7 in its history, it’s always about driving prosperity around the world on a macro level. So that’s why these discussions, at this particular moment in time, are crucial for the world economy,” Champagne said Tuesday. “I think the world’s going to be watching the discussions we have, but also the actions and the outcome that come.”

Trump tariff tension

The gathering in the Rocky Mountains, taking place amid a global trade war that’s seen all other participating nations hit by varying degrees of U.S. tariffs, could get rocky.

U.S. Treasury Secretary Scott Bessent signalled through a spokesperson that he’s come to Canada to talk to his counterparts about trade imbalances and his desire to generate economic growth through the private sector.

At the same time, other countries will likely look to find time on the sidelines of the meetings to discuss with Bessent their respective countries’ stance on U.S. President Donald Trump’s trade action.

Canadian officials would not confirm whether Champagne and Bessent have a bilateral meeting on the books, stating only that the summit will provide opportunities for the finance minister to meet with all his counterparts on the margins, and that his schedule was still being finalized.

Asked directly what his main message will be to Bessent, Champagne said he’d “continue to engage in a very constructive discussion,” as was the case in Washinton, D.C. a few weeks ago.

“There are big things that we need to do together … and I very much look forward to the contribution of Secretary Bessent,” Champagne said, adding that he thinks all his counterparts are “very eager” to meet with him and “really have a chance to discuss frankly, openly, how we can work together.”

While Trump’s tariffs are not explicitly on the agenda, it’s expected that in the context of leaders’ discussing the importance of a well-functioning international trade investment system, the American-led trade action will come up.

Pressed, Champagne did say that when it comes to tariffs specifically, “we always talk about the issues that are front and centre.”

“The spirit around the table is constructive. The spirit around the table is action. The spirit around the table is to send a strong message to the world, and that’s what is going to drive us over the next few days,” he said.

And while no resolution to any trade tensions is expected out of the gathering of economic heavyweights, there’s hope common ground on other challenges – such as non-market practices including overcapacity – can be found.

Ukraine taking part

Another area where Champagne will be angling to advance unity is through allies’ continued support for Ukraine amid Russia’s continued invasion.

While Ukraine is not a member of the G7, Ukrainian Finance Minister Sergii Marchenko was invited to attend the summit, similar to how Canada is extending an invite to Ukrainian President Volodymyr Zelenskyy during the June 15-17 leaders’ sessions.

Yesterday, Champagne and Marchenko met on the sidelines alongside investors, to discuss what Canada’s finance minister called the “moral imperative” of helping Ukraine rebuild, something the International Monetary Fund (IMF) has estimated could cost more than US$500 billion.

“I think it is very telling to the world that we have our Ukrainian friend with us,” Champagne said. “It sends a strong message to the world that we are, all of us recommitting to support Ukraine, we’re going to hold Russia to account.”

The discussion about Ukraine’s reconstruction will be continued around the G7 table, as the allies discuss private sector mobilization and pressuring Russia with further sanctions, while efforts continue to secure a ceasefire.

“The invitation to be here is great honour for us, because it helps us to better provide the necessary information about situation on the ground, to understand how we can collectively provide necessary action,” Marchenko said. “I hope we have a very productive discussion.”

Champagne’s budget pressure

This international summit is taking place with the backdrop of domestic pressure on the new Liberal government over Prime Minister Mark Carney’s decision to not present a federal budget this spring.

The government’s plans, first characterized by Champagne as no budget this year but an economic statement in the fall, was later clarified by Carney in Rome this weekend, to be that the Liberals will unveil a more fulsome autumn budget.

Opting to hold off this spring, according to Carney, is in-part because the series of high-level conversations – such as those that will be unfolding, largely behind closed doors, in Banff over the next 48 hours – will be what helps inform the country’s coming “ambitious, prudent” financial outlook.

“The prime minister and I talked with respect to the budget, and there will be a budget in the fall, and I think this is a prudent approach,” Champagne said.

“Like we said, there’s going to be a lot of things leading up to that. You know, there’s the NATO Summit that is going to come in June that’s going to have an impact on defense investments. There’s going to be also the review of spending and efficiency of the Canadian government,” said the finance minister.

Carney also indicated over the weekend, that based on the interactions he had with allies, he sees big opportunities for Canada to play a leadership role amid the economic transformation that’s afoot.

With files from CTV News’ Noah Watcher