G7 summit: pandemic, global taxes and change

G7 summit: pandemic, global taxes and change

Next weekend, June 11-13, representatives of the Group of Seven World Economic Powers (the United States, Canada, Germany, France, Italy, the United Kingdom and Japan) will hold their 47th summit in Cornwell, England.

Key topics of debate include the global health crisis posed by COVID-19, the taxation of international corporations in the technology sector, and climate change.

Although China is the world’s second largest economy, with a GDP of US$15.4 trillion, the country was excluded from the group because of its income. per person This has still established it as a developing country.

Despite the fact that the Chinese government exceeded the goal, the eradication of extreme poverty in the country, other geopolitical interests prevent Beijing from joining the G7.

pandemic

It is proposed to sign a common commitment to guarantee vaccination for all countries of the world by the end of 2022.

The news has generated much popular anger over the superpowers’ rhetoric about their concerns about the pandemic, while proving that they are the main accumulators of vaccines.

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According to World Health Organization (WHO)About 70% of the immunizations already produced on the planet were applied to the populations of the world’s ten largest economies.

In the US, which bought more than double the dose needed to immunize its entire population, the effects are already being seen. Millions of doses of Pfizer can end in the month of June without applying any patient.

Cornwell has at least four opposing concentration points, the only active group extinction rebellion A caravan of a thousand protesters was confirmed to prevent the incident.

global tax

Last Saturday (6), the economy ministers of the bloc countries reached a pre-agreement to create a minimum global tax of 15% to 20%, which must be paid by international corporations in both the countries where they are headquartered, as well as in places where they make profits from their sales.

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In the case of giants like Google, Amazon and Facebook, this measure can affect practically every country in the world. According to a survey, only the six largest companies in Silicon Valley, USA (Apple, Amazon, Google, Facebook, Netflix and Microsoft) failed to pay US$100 billion (about R$550 billion) in taxes in the past 10 years. have been. gives Fair Tax Foundation.

Some CEOs have expressed willingness to pay the new global tax, which is surprising as an investigative report by the company publica, with data from the US Tax Service, reported that the 25 richest Americans, including Amazon owner Jeff Bezos, did not pay income tax.

For Giorgio Romano Schutte, professor of international relations at the Federal University of ABC Paulista (UFABC), the tech giant’s response is part of their international marketing.

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The global tax initiative is in line with the Biden administration’s policy to increase taxes on the super rich from 21% to 28% and to introduce taxes on the revenues of these companies.

The proposal, declared as a “historic agreement”, has already generated controversy among some EU members. The Finance Minister of Ireland, which is the financial headquarters of Facebook and Twitter, announced that there are 139 countries in the Organization for Economic Co-operation and Development (OECD) and that “any decision must be satisfactory to countries small and large”.

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“Among the G7, this is an indisputable point, but it is clear that there will be resistance among the G20 countries,” says UFABC professor Giorgio Romano Schutte.

The head of the Cyprus economy portfolio, Constantinos Petrids, also expressed objections about the project during the last session of the European Parliament.

“We are in favor of fixing tax rates as long as the level is maintained in accordance with the sustainable development of economies and investors”, declared.

Both countries have friendly tax haven laws – areas with high banking secrecy and minimal taxation. According to International Monetary Fund (IMF), annually transmitting approximately US$600 billion (R$3.3 trillion) into tax havens.

Read more: Venezuela, Russia and China call for a new bloc at the United Nations

To apply, the global tax must be approved by the G20, whose next meeting is scheduled for October, and by the Organization for Economic Co-operation and Development (OECD).


With the climate dome, Joe Biden seeks to restore the green economy discourse in the world to reactivate its economy

Climate change

As for Schutte, Britain’s Prime Minister Boris Johnson is trying to establish his country as a global player right after leaving the European Union. Therefore both the G7 summit and the 26th climate summit will be held in the English region.

Washington tries to present its policies related to the green economy at this summit to prepare for the debate ahead of COP26, which will take place in Glasgow in November.

A flagship of Biden’s campaign was to shift the world’s energy base from oil to other minerals, favoring the growth of Silicon Valley companies.

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reaction

This will be the first G-7 meeting of the new President of the United States, Joe Biden. For Schutte, the meeting will serve to strengthen the United States’ global presence, strengthen its ties with the European Union, and the Group of Seven against the G20 and BRICS (Brazil, Russia, India, China, South Africa).

“The United States is ready to strengthen the existing agreement, show its leadership and reaffirm its hegemony in the world,” says the university professor.

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The White House has also indicated it wants to “share global values” with its peers during the meeting. “By this they mean to coordinate policies to prevent the rise of China. Something that will be a bit more difficult, because Europe wants to have a certain autonomy and a less aggressive policy”, analyzes Giorgio Schutte.

Biden will meet Russian President Vladimir Putin for the first time since the 47th G-7 summit.


Soon after the election results were confirmed, Putin welcomed Joe Biden’s victory. / CCS City

Russia joined the superpower group in 1998, becoming the “G8”, but was ousted after the annexation of Crimea in 2014.

Also read: How the US uses neo-Nazism in Ukraine to isolate Russia

Three major topics are on the table: the resumption of the nuclear deal with Iran, the withdrawal of military troops from Afghanistan, and relations with Belarus.

“Biden will try to build a joint agenda with Russia. He needs the Russians to restart the nuclear deal. Therefore, he has called for the suspension of sanctions against Nord Stream 2 (the gas pipeline between Russia and Germany). pointed”, analyzes Schutte.

Version: Leandro Melito

Will Smith

About the author: Will Smith

Will covers public and private tech markets from New York. He was previously a Knight-Bagehot Fellow in Economics and Business Journalism at Columbia University, and prior to that was a reporter at the Los Angeles Business Journal. He has received a Journalist of the Year award from the L.A. Press Club and an investigative reporting award from the Society of American Business Editors and Writers.

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