G20 heads of state and government met in Rome, Italy on Saturday 30 and Sunday 31 October. Before joining Glasgow (Scotland), where COP26 began, they notably addressed the issue of climate, but also the taxation of multinationals, post-pandemic recovery and aid to poor countries. Here is what we can learn from it.
A green light for the taxation of multinationals
G20 leaders first gave the green light to the tax reform of multinationals, including plans to tax them at a minimum of 15%. This tax is expected to bring in around $ 150 billion in additional revenue per year. Under the aegis of the OECD, 136 countries, representing more than 90% of world GDP, pledged in early October to tax multinationals more equitably with the ambition of From now on, each country must translate this global agreement into its own legislation. However, the first part of this reform, which consists in taxing companies where they make their profits, regardless of their head office, is already encountering strong reluctance in the US Congress. This measure indeed hits the American internet giants, such as Google, Amazon, Facebook and Apple (Gafa), inclined to practice tax optimization by establishing their headquarters where taxation is lowest. This tax reform is also considered insufficient by certain emerging countries, especially since the average rate of corporate tax in the world is now 22%, against 50% in 1985. At the end of a face-to-face meeting on Sunday between British Prime Minister Boris Johnson and Emmanuel Macron, the Elysee said it was working on “practical” and operational “measures in “the next few days” to favor “a de-escalation” in the dispute over fishing between France and the United Kingdom. A point will be made on Tuesday on the implementation or not of retaliatory measures by Paris. “If the French government wants to come forward with proposals for a de-escalation in relation to the threats they have formulated, they will be welcome”the British Prime Minister’s spokesperson told reporters at the G20 summit in Rome. “Our position has not changed”, he added, however. “The ball is in the British court”, reaffirmed Emmanuel Macron at a press conference on Sunday. “If the British do not make any obvious move, the measures planned from November 2 will have to apply”, he warned. France criticizes the United Kingdom for granting too few post-Brexit licenses to its fishermen. She promised, for lack of improvement, to ban, as of Tuesday, British fishing vessels from unloading their cargo in French ports and to strengthen customs controls on trucks. These decisions were judged “disproportionate” by London which, in rare cases, summoned the French ambassador and threatened, in retaliation, to strengthen the control of European ships spawning in its waters. As COP26 opens in Glasgow (Scotland), the G20 countries have agreed to stop, as of this year, subsidizing new coal-fired power plant projects abroad, which generate colossal gas emissions. greenhouse effect (GHG), responsible for global warming. “We will end international public funding for new coal-fired power plants by the end of 2021”, notes a draft press release consulted by AFP. On the other hand, no objective for the abandonment of coal at the national level and no clear date has been given as to the complete phase-out of coal or fossil fuels. The final G20 communiqué, negotiated overnight from Saturday to Sunday, reaffirms the objective of the 2015 Paris Agreement, namely “keep the average temperature increase well below 2 ° C and continue efforts to limit it to 1.5 ° C above pre-industrial levels”. But he insists, adding: “Keeping 1.5 ° C within range will require meaningful and effective actions and commitments from all countries.” Either a “stronger language” that in 2015, assure AFP two sources who participated in the negotiations. As for the date to be set to achieve carbon neutrality, 2050 or 2060, the “mid-century” is the formulation adopted by the G20. A horizon less precise than the date of 2050 desired by the Italian presidency of the G20. Finally, the G20 “reaffirmed” the commitment of “aim to mobilize together 100 billion dollars per year (…) until 2025” to enable developing countries to cope with climate change. This question is one of the crucial points discussed in Glasgow. The signal sent by the G20 – which brings together the main developed economies (EU, United States) and large emerging countries such as China, Russia, India or Brazil – was all the more expected as these countries represent 80% of global GHG emissions. In Rome, the United States and the European Union reached an agreement to remove tariffs on steel and aluminum imports. US Secretary of Commerce Gina Raimondo announced the deal “historical” who will allow “limited quantities of European imports of steel and aluminum entering the United States duty free”. The conflict over customs duties has plagued trade relations between Washington and Brussels since the imposition of these taxes by the Trump administration. “To help achieve the global goals of vaccinating at least 40% of the population in all countries by the end of 2021 and 70% by mid-2022”, as recommended by the WHO, the G20 countries have committed to “measures to help strengthen the supply of vaccines and basic medical products in developing countries”. To this end, the G20 has promised to“avoid export restrictions and increase transparency and visibility in vaccine delivery”. The Canadian government is also committed to providing “at least 200 million doses of vaccines” additional to poor countries to fight the Covid-19 pandemic “by the end of 2022”Justin Trudeau said in a statement. On the financial aid side, the G20 countries promise to return to vulnerable countries $ 100 billion out of the global amount of $ 650 billion in special drawing rights (SDRs) issued by the International Monetary Fund to face the resulting crisis. by the coronavirus pandemic.Tense discussions between Paris and London on fishing licenses
The end of subsidies for new coal-fired power plant projects abroad
The objective of limiting the rise in temperatures to +1.5 ° C confirmed
The elimination of customs duties on steel and aluminum imports
Aid to the poorest countries in the face of the Covid-19 pandemic