Efforts to strengthen global economic cooperation are taking place against a backdrop of growing political divisions, as G20 finance ministers and central bank governors meet in Asheville, North Carolina, without South Africa and with Washington pressing allies to isolate Iran.
The meeting highlights a growing challenge for the G20: governments are being asked to coordinate on issues such as economic growth, trade and supply chains while increasingly pursuing competing geopolitical interests.
US Treasury Secretary Scott Bessent is seeking support for Washington’s campaign to increase economic pressure on Iran, including encouraging countries to cut business ties with Tehran. Companies that continue trading with Iran could face the threat of US secondary sanctions, increasing uncertainty for businesses operating across multiple markets.
The pressure illustrates how geopolitical policy is increasingly shaping commercial decisions. International companies must now consider not only costs, demand and supply-chain efficiency, but also sanctions exposure and the risk that political disputes could disrupt access to major markets.
South Africa exclusion exposes G20 tensions
The absence of South Africa has added another fault line to the meeting.
South Africa, which hosted the G20 last year, has been excluded from this year’s US G20 process following a deterioration in relations between Washington and Pretoria over differences on domestic and foreign policy.
Several G20 members, including Germany, China, India and Brazil, as well as the African Union, have objected to Pretoria’s exclusion.
The dispute raises questions about how effectively the G20 can coordinate economic policy when its members are divided over participation and geopolitical priorities.
For businesses, the stakes are significant. The G20 brings together major advanced and emerging economies, making its discussions relevant to global trade, investment, financial stability and supply-chain policy. A weaker consensus could make coordinated responses to economic shocks more difficult.
Businesses face a more fragmented global economy
The divisions come as policymakers confront sluggish growth, trade imbalances and rising debt, while companies continue to seek more resilient supply chains.
Governments are increasingly balancing the economic benefits of globalisation against national-security concerns. Measures designed to protect strategic industries or punish foreign governments can, in turn, raise costs for companies and complicate international investment decisions.
The Iran debate is one example of that broader shift. Washington’s use of secondary sanctions means companies outside the United States can still face consequences for their commercial relationships with targeted countries.
That creates a growing compliance burden for multinational businesses and could encourage some firms to reduce exposure to politically sensitive markets.
The G20 talks therefore come at a critical moment for the global economy. The central question is no longer simply how governments can promote growth, but whether they can maintain meaningful economic cooperation as geopolitical rivalry increasingly shapes trade and investment.