UK’s Sunak Calls on G7 to Work Together on Supply-Chain Difficulties

LONDON (Reuters) – British finance minister Rishi Sunak said on Wednesday the Group of Seven rich nations should work together more closely to tackle supply-chain disruption which has hampered the economic recovery from the COVID-19 pandemic.

Sunak is meeting other finance ministers in Washington this week on the sidelines of the annual meetings of the International Monetary Fund and the World Bank.

“Global cooperation is key to addressing our shared challenges as we emerge from the pandemic,” he said in a statement ahead of the meetings.

“From global tax reform to global supply chains, we must work together to seek international solutions for the benefit of our citizens at home.”

The IMF warned on Tuesday that supply-chain bottlenecks, including delays at ports and shortages of key components such as microchips used in car production, were delaying recovery and fuelling inflation pressures worldwide.

Britain has been hit especially hard due to the added impact of post-Brexit trade barriers and tougher immigration rules.

Many British petrol stations temporarily ran out of fuel last month, and a pan-European surge in natural gas prices has led to a shortage of carbon dioxide used to stun farm animals before slaughter.

Sunak also intends to encourage other rich countries to redirect part of their share of the IMF’s new $650 billion allocation of its internal currency to poorer nations to improve healthcare and respond to climate change.

(Reporting by David Milliken; Editing by William Schomberg)