Selected Bilateral and Regional Trade and Investment Agreements

Abstract

The Nixon Shock and the oil crisis’s adverse impact on the global economy prompted the establishment of first the G5, then G6, and finally G7 to address the impact of the two developments in 1976. Russia was added to the club at the invitation of British Prime Minister Tony Blair and U.S. President Bill Clinton, forming the G8. With Russia on its side, the world’s developed nations effectively controlled the global economic and geopolitical orders. Having Russia in the G8 was also expected to generate a “Cold War” dividend for the United States. However, Russia was kicked out of the club, being accused by the West of annexing the Crimea and causing trouble in the eastern part of the Ukraine. The 2008 financial crisis exposed the weaknesses of the G7/8, disenabling it from addressing global economic and financial issues. The task was turned over to the G20, a club made up of the world’s 19 largest economies plus the EU.