Washington — The US will host G20 talks in the coming weeks on the impact of the war in the Middle East on food and fertiliser, as it continues to push for co-ordinated action.
The US, the current chair of the G20, will make the commitment in a chair’s statement about a meeting of the major economies’ finance ministers and central bank governors held during the spring meetings of the IMF and World Bank on April 16.
A copy of the statement, released in lieu of a communiqué, which would have required consensus by all members, was viewed by Reuters ahead of its official release later on Monday.
The statement said G20 finance officials discussed a range of issues, including the economic impact of the war and its effect on agriculture markets, value chains and fertiliser, but stopped short of announcing an agreement for co-ordinated action to ensure fertiliser access amid war-related disruptions.
US treasury secretary Scott Bessent last week launched a push for the G20, which includes Russia and China, to take co-ordinated 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, 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 G20 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 are expected to continue on the issue and build towards an “actionable consensus”, the officials said.
Details of the potential co-ordinated action were not disclosed.
The statement said many G20 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 co-ordinate in order to maximise their responses to the economic impacts of the war.
IMF MD Kristalina Georgieva on Friday said the two institutions will meet this week to assess requests for help from member countries and co-ordinate the best response.
Many members also committed to staying agile and flexible in their macroeconomic policy responses and co-operation. They discussed “the potential for co-ordinated 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.
Bessent has streamlined the work of the G20 under US leadership, halting a number of committees working on issues such as climate change and sustainability while emphasising core macroeconomic issues.
A treasury spokesperson said Bessent is determined to return the G20 to “a more nimble, action-oriented group” and Washington looks forward to taking action alongside its G20 partners.
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