Friday, August 12

G20 ratifies its support for the historic 15% global minimum tax on multinationals


The leaders of the G20 have ratified this Saturday at the Rome summit their support for the minimum tax on multinationals of 15% after years of talks, as reported by the White House in a statement.

“All the leaders supported a global minimum tax. The President, Joe Biden, highlighted the importance of this historic agreement during his speech, “according to the note.

Biden further stated that “The international community, thanks to the agreement on this global minimum tax, will support people by ensuring that companies contribute by paying their share”. “This is more than just a tax deal, it is diplomacy that is reshaping our global economy and bringing benefits to our people,” he added.

The Secretary of the Treasury, Janet Yellen, has stressed that This agreement, proposed by Washington, is reached at a “critical moment” for the world economy and that “it will end the damaging race to the bottom of corporate tax.”

In addition, he has pointed out in a message posted on Twitter that the agreement will benefit American workers although the country’s large multinationals have to pay more taxes.

The pact had already gained enormous support in July and October when the Ministers of Economy and Finance The G20 agreed to a framework agreement, as happened later in the framework of the Organization for Economic Cooperation and Development (OECD).

The agreement has two fundamental objectives: to prevent large multinationals from diverting their profits to countries considered practically as tax havens.s and address the digital nature of international trade by taxing companies where they operate, rather than those countries where they report their profits.

The United States and five European governments contributed just over a week ago cement this ratification by allowing European countries to keep their taxes on digital services to giants like Facebook and Amazon.

For the rest, the main forum this Saturday, “G20 Global Health and Economy” has been the scene of a “broad consensus” to the initiative of the Italian Presidency to establish a global working group on health and finance, in order to promote “a closer collaboration between these two worlds”.

In the forum, the Prime Minister of Italy, Mario Draghi, who defended multilateralism as “the best” and, at times, “the only answer” to the problems of the contemporary world. For Draghi, international collaboration “is the best answer to the problems we see today and, in many ways, it is the only possible answer, from the pandemic to the climate and taxes.”

Vaccine patents

On the other hand, ehe great absentee, Chinese President Xi Jinping has intervened by videoconference to defend the need to release patents on vaccines against coronavirus on an exceptional basis to encourage mass vaccination in less developed countries.

Xi has thus summoned the World Trade Organization (WTO) to make an early decision on the matter because one of the functions of this body is to promote the transfer of technology to developing countries.

For its part, ehe President of Russia, Vladimir Putin, has opened his speech by videoconference with a petition to the international community to speed up the mutual recognition of coronavirus vaccination certificates.

“We propose to the Ministries of Health of the G20 countries to examine the question of mutual recognition of vaccination certificates as soon as possible ”, declared the Russian president.

Putin has lamented that “Some countries take a protectionist approach to vaccines and are unwilling to recognize and register other models”, such as the Russian Sputnik V.

Thus, the World Health Organization, Putin has requested, “must increase the speed with which it analyzes and authorizes vaccines and therapies against the coronavirus”. “The sooner this happens, the sooner we can reactivate the economy, for example in the tourism sector,” added the Russian president in statements collected by the official Russian news agency Sputnik.

On the other hand, Mexico has called on world leaders to universally recognize vaccines against COVID-19 “and support vaccination in developing countries.” The person in charge of intervening with the G20 leaders has been the Mexican Minister of Foreign Affairs, Marcelo Ebrard.

Global warming

Global warming and the emission of greenhouse gases has been another of the key themes of the first of the two days of the G20 before the imminent celebration in Glasgow of COP26. In his message, Xi has reiterated that China’s greenhouse gas emissions will continue to increase until 2030, but emissions neutrality will be achieved in 2060. Xi has asked rich countries to “set an example by reducing emissions.”

What’s more, Xi has called for global development “more equitable, effective and inclusive” within the framework of the meeting of the leaders of the Group of 20 held this weekend in Rome.

For Xi it is essential to “ensure that no country is left behind” after the pandemic, which has caused “multiple crises in the world”, particularly in developing countries. In addition, Xi has proposed a global cooperation initiative on vaccines, noting that Beijing has supplied 1.6 billion doses to the international community.

In a message to the forum and transmitted by videoconference, Xi has advocated “a people-centered approach” and not “Ideological blocks or lines” that cause “division and generate more obstacles, which only damages scientific and technological innovation ”.

Protests

While, the Italian Police intervened early to remove a blockade made up of approximately fifty protesters in favor of the environment near the security zone of the G20 summit that starts this Saturday in Rome.

Is about fifty protesters from the so-called Climate Camp who decided to block traffic on Cristoforo Avenue Colombo sitting in the middle of the road shouting “If there are no changes, we will blockade the city.”

Police officers have moved the protesters to the sidewalk of the road to clear the passage of vehicles and, at the moment, there is no record of more incidents, according to the Italian media ‘Il Messaggero’.

Rome has deployed a powerful security operation with more than 5,000 policemen that they will patrol the streets to avoid violent demonstrations such as those that took place a fortnight ago against the obligation of the health passport and that led to serious disturbances and the assault on the headquarters of the main Italian union.

The EUR zone, a peripheral neighborhood that dictator Benito Mussolini ordered to be built in the 1930s, will host the summit and has been declared a high-alert red zone. The entire area will remain completely closed to traffic and the schools and companies based there have been closed from this Friday until Sunday.

The security operation includes sniffer dogs, as well as fighter jets, military helicopters and drones to control the airspace.

Various demonstrations are planned by the activists against the climate emergency of ‘Fridays For Future’, as well as workers and several NGOs that will protest against the difficulty of countries with fewer economic resources to access vaccines against COVID-19.



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