Published 07/24/2024 16:12
Finance ministers and central bank governors from the G20, which includes the world’s 19 largest economies, as well as the European Union and the African Union, will begin meeting this Wednesday (24) in Rio de Janeiro. The group’s third meeting in 2024 will have as its main topics the Brazilian proposal to tax the super-rich and measures to mitigate the effects of climate change.
On the eve of the start of the G20 meeting of finance ministers and central bank governors on Thursday (25), negotiations continue at the level of vice ministers and vice presidents, said Ambassador Tatiana Rosito, coordinator of the G20 finance track and secretary of international affairs at the Ministry of Finance. The big news is the preparation of a separate document to address tax cooperation within the G20, called “international cooperation on tax matters”, which should be finalized by consensus.
Ambassador Maurício Lyrio, Brazil’s chief negotiator at the G20, assured that geopolitics will not be an obstacle in the discussions and stressed that the main issue is whether the ministers will reach an agreement. Yesterday, a press briefing, initially scheduled for 6:30 p.m., was postponed by more than an hour due to the extension of discussions on the last day of the fourth meeting of G20 vice finance ministers and central bankers, held at a hotel in the western zone of Rio. Traditionally, these meetings of technicians define the basis for official statements, which are then adjusted by high-level authorities.
Ambassador Rosito justified the delay by saying that the talks are continuing and stated that negotiations are progressing well, expressing confidence in the possibility of reaching a consensus for the announcement of three documents: the unprecedented document on international tax cooperation, the final publication of the meeting and a third document from the Brazilian presidency on ongoing conflicts in the world and the different points of view of member countries. “I believe that we will have a final document. As we said in February, the only reason for not having a document at that time was the geopolitical issue. Now we have found a way and we firmly believe in the conclusion of the three documents,” stated Rosito.
Ukraine and Palestine
Reaching a joint ministerial statement is a key objective of the Brazilian G20 presidency. The previous finance track meeting in February in São Paulo ended without an official statement due to geopolitical impasses. This time, an agreement between the chief negotiators was reached earlier this month, deciding to leave wars and international geopolitical conflicts out of the G20 joint statements. This made it possible to conclude ministerial statements for the first time since the start of the Ukraine War in February 2022, during the development working group meeting.
The strategy adopted was to publish a final document with the points of consensus, without addressing geopolitical issues, and a second text from the Brazilian presidency on the ongoing conflicts and the different points of view of the member countries. According to Lyrio, this allowed “unblocking the issuance of ministerial statements”.
Despite the optimistic tone regarding consensus on the finance track, Ambassador Rosito avoided commenting on the ongoing negotiations. “I prefer not to comment on documents under negotiation until we conclude them. As the presidency, we are ensuring that we build consensus and trust among the delegations. We are prepared to stay for additional hours, if necessary. We will continue working,” she said.
International cooperation in taxation
Rosito celebrated the unprecedented nature of the tax agreement, highlighting that it is the first time there will be a declaration on international cooperation in tax matters. All of the topics proposed by the Brazilian presidency, including taxation of the super-rich, will be covered in the document. The proposal faces opposition from the United States, with US Treasury Secretary Janet Yellen positioning herself against a global tax on the wealth of billionaires. However, Brazilian Foreign Minister Mauro Vieira downplayed the opposition, stating that several countries had expressed support and that the debate would continue.
The G20 meeting, which runs until Friday (26), is the third meeting of the group’s financial track since Brazil assumed the presidency. In addition to the main meetings, there will be parallel events discussing topics such as sustainable development and the climate emergency. President Luiz Inácio Lula da Silva pre-launched the Global Alliance against Hunger and Poverty, one of Brazil’s priorities during its presidency of the G20.
The meeting seeks to hear the position of G20 finance ministers on taxing the super-rich. France, Spain, Colombia, the African Union and Belgium have expressed direct support for the Brazilian proposal, while the United States has rejected the idea, suggesting other mechanisms to reduce global inequality. South Africa, which will assume the rotating presidency of the G20 next year, also supports the proposal.
The fourth meeting of the finance group, which began on Monday, was attended for the first time by engagement groups and civil society, as well as G20 deputy finance ministers and central bank vice governors. These discussions set the focus of the official communiqué that will be discussed at Thursday’s ministerial meeting.
In addition, Brazilian Minister Fernando Haddad will hold bilateral meetings with US Treasury Secretary Janet Yellen and Indonesian Finance Minister Sri Mulyani, discussing topics such as the global economy, taxing the super-rich and the climate emergency. Other important meetings will include discussions with OECD Secretary-General Mathias Cormann and the new UK Finance Minister Rachel Reeves. The event will culminate with an official dinner at BNDES, focusing on forest preservation in Brazil.
On Friday, the meeting will discuss financing for sustainable development and climate change, culminating in a final press conference by Haddad, Campos Neto and Ambassador Rosito, closing the G20 meeting in Rio de Janeiro.
Source: vermelho.org.br
