G7 leaders to discuss ways to forge sustainable, inclusive global economy

Falmouth, UK, June 11 (EFE).- G7 leaders Friday begin a three-day summit with Covid-19 and global economic recovery on the top of the agenda.

A White House statement said the leaders on the first of the summit would “discuss ways to forge a more fair, sustainable, and inclusive global economy that meets the unique challenges of our time.”

United States President Joe Biden and leaders from Britain, Canada, France, Germany, Italy, and Japan will hold the summit in this town on the coast of Cornwall in southwest England.

It is their first face-to-face gathering after the pandemic not only scuttled a similar meeting last year but also devastated the global economy.

The White House statement said Biden and G7 partners were committed to a global recovery for the middle class and working families.

“President Biden and G7 leaders agreed to continue providing policy support to the global economy for as long as necessary to create a strong, balanced, and inclusive economic recovery.”

The leaders from the seven most developed economies will endorse a strong-global minimum tax of at least 15 percent.

The statement said it was “a critical step” to end the decades-long race to the bottom that pushes nations to compete over the lowest tax rate to large corporations at the expense of protecting workers, investing in infrastructure, and growing the middle class.

The minimum tax rate received a boost after Biden took over from his predecessor Donald Trump, who had avoided committing to the initiative.

“By making big multinational corporations pay their fair share and raising resources to fund priorities for domestic renewal, a global corporate minimum tax is a key part of our efforts to deliver a foreign policy for the middle class,” the statement said.

It said the initiative would help support working families everywhere.

“(The) agreement is a clear illustration of how American leadership and commitment to multi-lateralism can produce results for American workers and businesses.”

The White House said the pact would pave the way to remove Digital Service Taxes and other discriminatory taxes.

“The G7 also reached historic agreement on a plan to replace DSTs with a broader reallocation of taxing rights to the places where the largest and most profitable multinational corporations are doing business and making money.”

The new rule would apply to large multinationals broadly, both domestic and foreign, and not just the technology sector.

“This is an important principle for the United States, and will ensure that big multinational companies across the economy will pay a little more in the places where they operate, whether or not they have their headquarters there.” EFE


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