Summit G20 leaders gave their support to a minimum corporate tax but did not make progress on climate action

Vladimir Putin and Xi Jinping highlighted dissatisfaction with the treatment of vaccines in their countries in the West.

Leading the G20 summit of economic powers has endorsed a plan to impose a 15% minimum tax on the largest transnational corporations, said the US Treasury Secretary; Janet Yellen on Saturday in Rome.

“Leaders in all G20 countries have backed a historic agreement on international taxation that includes a global minimum tax and will put an end to harmful corporate tax competition,” Yellen praised.

136 countries, representing more than 90% of the world’s GDP, have signed up to the tax solution negotiated through the OECD.

The minimum tax is due to enter into force in 2023, but its implementation is not yet entirely certain. The agreement has provoked fierce resistance in the US Congress.

The first principle of the reform is that companies should be taxed where their profits are generated, not where they have their headquarters.

Read more: Heads of state praise agreement on global minimum corporate tax level, criticize organizations: “Toothless”

At the meeting by contrast, no progress was made on climate issues, despite strong pressure ahead of the Glasgow climate summit starting on Sunday.

The host country, Italy, would like the G20 to express its united support for the goal of the Paris Climate Agreement that global warming should be limited to 1.5 degrees. However, there did not seem to be a consensus on this.

The G20 countries account for three-quarters of the world’s greenhouse gas emissions. Outside the meeting, hundreds of activists protested, demanding tougher climate action.

At the meeting the still rampant coronavirus pandemic was also addressed. The Prime Minister of Italy Mario Draghi called on the G20 to ensure that 70 percent of the world’s population is vaccinated against the corona by mid-next year.

“We are very close to achieving the (World Health Organization) WHO target of vaccinating 40 percent of the world’s population by the end of 2021. Now we need to do everything we can to reach 70% by mid-2022, ”he said in his opening remarks.

President of Russia Vladimir Putin attended the meeting via video and complained about the treatment of Russian vaccines. According to Putin, many countries are missing out on the vaccines they need because vaccines and vaccination certificates are not mutually accepted.

“The reason for this is unfair competition, protectionism and the reluctance of some G20 countries to mutual recognition,” Putin said.

The Sputnik vaccine developed in Russia has not been licensed in the EU or the United States. Many countries have rejected the Russian vaccine because doubts have been raised about its safety.

Also the President of China Xi Jinping in his speech, called on the West to accept Chinese vaccines.

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