26/05/2017 World Business Report

Now it's time for World Business Report.

Can the other G7 leaders keep the US President on side over trade

It's the global capital of cast-off clothing but is India's textile

Also coming up - Canada's trade minister raises his concerns

We start in Southern Italy, in the Sicilian resort of Taormina -

where as you've been hearing, the G7 group of top industrialised

nations is starting a two day summit.

It'll be the first one attended by President Trump.

He's not the only newcomer of course - France's President Macron

will be among those making a debut as well as British Prime Minister

Theresa May and the host, Italian Prime Minister Paolo

Let's just remind ourselves how important this group is -

The seven countries account for getting on for half

But many of them are struggling with comparatively stagnant economies.

The International Monetary Fund is forecasting that world's economy

will grow by 3.5% this year but just 1.9% in the G7

and also high on the list of worries,

the rise of trade protectionism after President Trump came to power

The other G7 members will be pushing him to soften this position.

and the future of the 2015 Paris climate change agreement.

President Trump has threatened to pull the US out of the deal.

His fellow G7 leaders will try to convince him otherwise.

France's President Macron has already started trying to persuade

Mr Trump to stay on board during talks in Brussels on Thursday

TRANSLATION: I respect the fact that he has reviewed

I reiterated the importance of this agreement for us,

the importance of his commitments, and I truly believe this,

to the international community for political responsibility

as well as for jobs and economic development.

So in any event, we don't want a hasty decision to be taken

on the issue by the United States of America.

Our collective responsibility is to ensure that this commitment

remains global, which is the first of its kind.

the Royal Institute of International Affairs -

They have their work cut out. Want to look at the Paris climate change

agreement. How likely do you rate their chances of getting President

Trump to soften the stands? There is certainly effort by France and

Germany to soften his stands but that is highly unlikely given that

the Trump administration has already signalled that over the coming days,

they are not going to make a decision support we have the G20

summit in July, is not going to be much movement. Most likely, the

United States is interested in pulling out and changing the

agreement from within so that could open up a Pandora's box.

Protectionism affects all those countries. How much of that is --

emphasis do you think they will put on President Trump trying to soften

his America first stamps? To keep trade on this global level. It will

be of key interest, especially to Germany, but there is a huge

difference between the American President and the rest of the G six.

President Trump would very much like to focus on trade imbalances and if

you look at Japan, Germany, Italy, those are among the key countries

which the United with States has a trade deficit. Again, what we know

we as, from the meeting two weeks ago in Bari, whether Finance

ministers met, they have watered down the language. Most likely what

we will see in the communique coming out of the Sicily meeting is that it

will just be reinforcing trade in the economies. We discuss some of

the differences they have. One thing they have in common is growth. We

have that figure from the IMF forecasting within the G7 group,

1.9%, what do you think we are going to try to come up with to deal with

anything? There are many other issues on the agenda, looking

towards the Manchester bomb, terrorism will be up on the agenda.

But it's quite normal to see this diverges between established

economies, compared to other ones and President Trump on the campaign

trail said he wants to see the American economy grow by 3- 4%. That

is highly unlikely given it is such a well-established economy and

emerging economies have the advantage of population growth.

Thank you very much indeed. Interesting to get your perspective.

Let's stay with those concerns about President Trump's trade policy.

He has of course pledged to renegotiate the North American

Free Trade Agreement - or Nafta, with neighbours

Sharanjit Leyl has been talking to Canada's

Well, he's been saying a lot with what's been crucial is where he has

been visiting as well because just put it all in context, we know that

President Donald Trump is called the North American trade Deal a disaster

that costs millions of US jobs, withdrawing from its entirely, it

attempts to renegotiate -- renegotiate with Canada and Mexico

don't go well. Canada has been looking to Asia to drum up business.

The Canadian Trade Minister has been visiting this region. He was in

Vietnam and Singapore and South Korea and Japan but he says Nafta is

still an important trade pact. It's always good to start a negotiation

when you are the first client of the entity going to negotiate with. We

are proactive engaging with our US colleagues. The Prime Minister has

established a relationship with President Trump. We saw the dividend

in the phone call recently and we have been firm in telling them and

stand firm for Canadian workers. That was the Canadian Trade Minister

saying they again to stand firm. Windows counterpart, the US Trade

Representative, has kicked off the process for the rework of the

agreement with Canada and Mexico, issuing a 90- day notice to Congress

to do that. We are also in Northern India -

looking at a 'rags to riches' story It's where much of the discarded

clothing donated to charity ends up But as Shilpa Kannan

has been finding out, This is the world's

cast-off capital. From High Street brands

to luxury labels, most clothes donated

to charity end up here. Every day, hundreds of tons

of clothing from across the UK Torn and used clothing

which would otherwise have ended So the factories here play

a vital link in the global Shredded, buttons and

zippers ripped off, Over 140,000 tons of clothing

are processed here and every three tons of fabric produces around 1.5

tons of yarn which is woven back Africa is the biggest

consumer for what's made here and the industry

here is worried that what was once a lucrative business

is now getting more expensive. The cost of importing

this textile waste is almost zero but once it reaches

India, the custom duties, transportation, storage

and electricity and labour Our consumers in Africa want cheap

blankets and we are struggling While the industry here is well

suited to absorb the growing supply of fast fashion

from the West, the recycled wool and cotton yarn is facing

increased competition from cheaper man-made

fibres like polyester. It has taken a very bad hit

because the investor is not doing well and every day,

a unit is closing or On one hand, the demand from Africa

has dipped and on the other, there is a global glut

of used clothing. So even though they are having

a real environmental impact, the industry here is struggling

to make money on the recycling General Motors has been accused

in a lawsuit of rigging hundreds of thousands of diesel trucks

with devices similar to those used by Volkswagen to ensure

they pass emissions tests. The proposed class-action lawsuit

covers drivers of more than 700,000 Chevrolet Silverado and GMC Sierra

pickups from 2011 to 2016. A GM spokesman has called

the claims baseless. The UK Independence Party has

fiercely attacked Theresa May's