G20 declaration in defiance of US marks rare victory for multilateralism

By Tim Cocks and Andrea Shalal

JOHANNESBURG/WASHINGTON (Reuters) -Born of crisis but torn by years of tensions among its members, the Group of 20 major economies scored a rare victory this weekend for multilateralism after overcoming the boycott and objections of its most powerful member, the United States.

South Africa, this year's G20 president, rallied all but two member nations - the U.S. and Argentina - to issue a declaration, ignoring Washington's warnings and quelling questions about the G20's future - at least for now.

Many doubted Pretoria would secure a declaration, much less tackle issues such as helping poor nations cope with climate change and external debt.

That success strengthened a body which for years was struggling to reach meaningful agreements - and highlighted the power of multilateralism when it seemed in retreat, researchers and delegates said.

SUMMIT PRODUCES FRAMEWORK ON INEQUALITY            

The outcome infuriated the United States, next year's G20 host. The White House accused South Africa of weaponizing its presidency to undermine the G20's founding principles on unanimous consensus. It said U.S. President Donald Trump would restore its "legitimacy" while hosting next year.

The White House had no immediate comment when asked if it planned to disinvite South Africa from next year's G20 events. 

The declaration's final paragraph was carefully worded to commit to meeting in future G20 summits in Britain and South Korea, but only to "working together" under the U.S. presidency, a South African delegate said.

President Cyril Ramaphosa declined an American offer to hand over the rotating G20 presidency to a junior diplomat. That ceremony will now take place between equivalent diplomats this week.

The summit had seemed hopelessly overshadowed by Trump's boycott over false allegations that South Africa's Black majority government mistreats its white minority. 

A South African delegate at the summit, who declined to be named because they were not authorised to speak, said Friday's agreement on a draft caused a visible ripple of relief among negotiators.

"News of the G20's demise is greatly exaggerated," said Josh Lipsky, the Atlantic Council's international economics chair and ex-aide to former President Barack Obama.

"In a crisis ... it will be there - regardless of which leaders are present at any ... summit," he said.

The declaration tackled issues such as climate and renewable energy that often divide G20 members. It proposed the first global panel to address inequality.

"This is the first meeting of world leaders ... which put the inequality emergency at the centre of the international agenda," Nabil Ahmed, Senior Director of Economic Justice at international charity Oxfam, told Reuters.

A NEW APPROACH TO TRUMP?

Faced with Trump's ire, G20 leaders had a choice: "Do we butter him up or stand up to him?" said Michael Bociurkiw of American think tank Atlantic Council's Eurasia Center. They chose the latter.

"Leaders were getting fed up," he said. "This could set a new approach to dealing with Donald Trump," a view several delegates echoed.

Saturday's show of unity was aimed at supporting the hosts and decrying the United States' refusal to engage in the G20's first African summit, one said. 

Another said U.S. actions brought together countries at odds with Trump, like India and South Africa, with others seeking to maintain good relations, like Britain and France.

But with the United States taking up the mantle, there is a risk much of the work in Johannesburg could be undone.

Washington is expected to narrow the G20's focus during its presidency, which coincides with the United States' 250th anniversary, to just the leaders' summit and financial forum, jettisoning other working groups and ministers' meetings on energy, health and the environment.

"The United States looks forward to emphasizing economic growth, deregulation, and energy abundance as key pillars of its 2026 G20 host year," a spokesman for the U.S. Treasury said. " A back-to-basics approach at the G20 is long overdue."

The International Monetary Fund and World Bank are still invited, but Washington plans to exclude United Nations organisations, a source familiar with the plans said.

Then again, it's only for a year. At worst, said one delegate who also declined to be named, countries could "lay low" during the U.S. presidency then resume work later.

Despite the bitter differences, Washington's G20 agenda overlaps with South Africa's in key areas like development, economic growth and financial stability, notes Eric LeCompte, a U.N. adviser and executive director of non-profit Jubilee USA Network.    

"I think there is going to be carry-over in certain

areas with the U.S. taking the mantle," he said.

(Reporting by Tim Cocks in Johannesburg and Andrea Shalal in Washington; Editing by Emelia Sithole-Matarise)