Merkel warns over trade issues ahead of 'tough' G7 talks

Germany car industry

GETTY Germany is on the brink of a crippling car industry

Berlin, Jun 6 German Chancellor Angela Merkel said today she expected "contentious discussions" at a G7 summit this week, given differences with US President Donald Trump on trade, climate and security.

"The annexation of Crimea was a flagrant violation of global law, and therefore Russia's exclusion from the G8 format was inevitable".

According to Merkel, the summit, to be held on 8 and 9 this month in the municipality of Charlevoix, in northeastern Quebec will be an important scenario after Washington's removal from the nuclear agreement with Iran, and the imposition of tariffs on European imports of aluminum and steel.

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She said that would "greatly strengthen the consistency and coherence of our foreign policy".

German chancellors haven't previously interacted directly with lawmakers in the same way British prime ministers do at their weekly question time.

Merkel told lawmakers on Wednesday that Germany will work to ensure that the summit's communique doesn't fall below what was agreed at last year's G-7 and Group of 20 summits.

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"I'm in favor of talks with Russian Federation", she said, "But keeping in mind the differences we have".

"I will go in with good will", she said, adding a caution that "we must not keep watering down" the G7's previous commitments to fair trade.

"I will of course try to speak to the USA president about the current problems that we have overall, in particular on Iran and on trade tariffs", Merkel told the Bundestag lower house of parliament. Permanent contacts are underway in the G20 format and directly between the leaders, in particular, on how to resolve the crisis in eastern Ukraine, she said.

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At Wednesday's roughly one-hour session, questions and answers were kept to a maximum of a minute each, with no follow-up questions, and the calm but concentrated atmosphere was far from the lively question time in London.

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