G8 leaders tackle soaring oil prices, Africa aid and emission cuts

TOYAKO, Japan, July 8 (Xinhua) -- The leaders of the Group of Eight (G8) nations, meeting on the second day of their annual summit on Tuesday, expressed concern over the sharp rise in oil and food prices, reaffirmed their promise to increase aid to Africa and agreed on a long-term reduction target of greenhouse gases.

Climate change, the world economy and African development have been chosen as the main topics of three days of discussions in Toyako, a resort town on the northern island of Hokkaido.

The leaders from the G8 -- Britain, Canada, Italy, Japan, France, Germany, Russia and the United States -- talked with the presidents of seven African nations a day earlier before having discussions of their own.

"We express our strong concerns about elevated commodity prices, especially of oil and food, since they pose a serious challenge to stable growth worldwide, have serious implications for the most vulnerable, and increase global inflationary pressure," the leaders said in a statement.

The leaders admitted "uncertainty" and "downside risks" for the world economy, but they remain positive about the long-term resilience of G8 economies and future global economic growth.

Emerging market economies are still growing strongly though theG8 nations' growth has moderated, said the statement.

The leaders said they would take actions to ensure stability and growth in their economies and globally and resist protectionist pressures against international trade and investment.

"A successful conclusion of an ambitious, balanced and comprehensive WTO Doha agreement is critical to economic growth and development," said the statement, calling all WTO members to make substantial contributions toward establishing modalities for Agriculture and NAMA (Non-Agricultural Market Access) and achieving positive and tangible results on services.

On the sharp rise in oil prices, the G8 leaders called for concerted efforts to address the underlying causes for the benefit of all. "Greater transparency will lead to better functioning energy markets and hence a better balance between supply and demand, " they said.