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G-7 leaders to discuss Covid and global minimum tax rate on summit day 1

WASHINGTON – President Joe Biden and other world leaders are expected to focus on the global response to the coronavirus pandemic on Friday, the first day of the G-7 meeting in Cornwall, England, while advocating for capacity unique democratic institutions to respond to economic crises and disparities, senior administration officials said.

The Group of Seven, an organization of the world’s major industrial countries – Britain, Canada, France, Germany, Italy, Japan and the United States – will also approve a global minimum tax of at least 15% for businesses, said the White House.

If passed, a set global tax rate – which businesses should pay regardless of where they are located – could reverse what the White House has called a “race to the bottom” in international rates that has been a source of tension between countries. for years.

“This U.S. priority is a critical step towards ending the decades-long race to the bottom of nations competing over who can deliver the lowest tax rate to big business at the expense of protection. workers, investments in infrastructure and growing the middle class, “the White House said in a backgrounder shared with reporters.

The White House added that “a global minimum corporate tax is a key part of our efforts to implement a foreign policy for the middle class and will help support working families everywhere.” The deal would also pave the way for the removal of digital service taxes and other discriminatory taxes, the White House said.

G-7 leaders will examine ways to amplify the impact of the International Monetary Fund’s Special Drawing Rights, which are reserve assets that can be used to help poorer countries with immunization programs and efforts to recharge their savings during the pandemic.

The group will also discuss climate change, ransomware and ways to counter China, the White House said.

Biden announced Thursday that the United States will buy and donate 500 million doses of Pfizer’s Covid-19 vaccine to countries in difficulty of supply. After Biden’s announcement, Prime Minister Boris Johnson said the UK would give at least 100 million excess doses to countries in need.

Biden said world leaders would announce “the full scope of our commitment” to fight the pandemic on Friday.

The G-7 meeting, the first face-to-face meeting between countries in nearly two years due to the pandemic, will end on Sunday. Biden will then travel to Brussels for the NATO summit on Monday before meeting with Russian President Vladimir Putin in Geneva on Wednesday.

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