The international taxation of large fortunes, the so-called super-rich, one of the priorities of the Brazilian presidency of the G20 (Group of 20, which brings together the world’s main economies), is advancing in negotiations so that it becomes the exclusive topic of a declaration that will be approved by finance ministers and central bank presidents, who will meet on Thursday (25) and Friday (26), in Rio de Janeiro.
The information comes from the Secretary of International Affairs of the Ministry of Finance, Ambassador Tatiana Rosito. She coordinates the G20 Finance Track, which conducts pre-negotiations with representatives of ministries and central banks. The meeting began on Monday (22) and is now in its second day, and may “continue for additional hours”.
The delegations are seeking consensus so that a declaration can be forwarded to the authorities who will hold the meeting at the end of the week.
Tatiana Rosito gave an overview of the second day of talks on Tuesday night (23). She spoke to journalists for just over 20 minutes and explained that she would have to return to the negotiating table.
The secretary said that the group should make three formal statements. One will be exclusively about international tax cooperation, which includes the taxation of large fortunes. The second will cover more issues, such as the actions of multilateral banks, international financial architecture, capital flows and climate. A third statement will use “geopolitical language.”
The Brazilian negotiator stressed that more hours are needed to find consensus on all issues, but stated that the talks “are going well.” The ambassador did not indicate which points there are still no consensus on. “We have to ensure that we build consensus,” she explained.
However, the representative of the Ministry of Finance highlighted the proposal to tax the super-rich, recalling that it is one of the priorities of the Brazilian presidency in the G20, having been the subject of speeches by President Luiz Inácio Lula da Silva and the Minister of Finance, Fernando Haddad.
“It will be an unprecedented statement,” he said. “All the terms raised by the Brazilian presidency are within the document. [de cooperação internacional]including taxation of the super-rich. The points are well advanced,” he detailed.
The ambassador highlighted that the fact that a separate declaration is being prepared for the topic “is intended to give due projection to the centrality that this has for the Brazilian presidency”.
“This is the first time that there will be a statement of this nature in the area of taxation. We believe that this initiative deserved a specific statement,” he said.
Calculations by French economist Gabriel Zucman indicate that the taxing the super-rich would only affect 3,000 individuals across the planet, of which around 100 are in Latin America. In return, it would have the potential to raise around US$250 billion per year.
Rosito said he was confident that the statements would be issued, unlike what happened at the G20 Finance Track meeting in February, when there was no consensus on certain issues.
diplomatic solution
The negotiator explained that in the meetings held this July, such as the one taking place in parallel at the Sherpa Trail (the most political side of the G20), the Brazilian presidency adopted the position of issuing a separate statement called a “Communiqué”, which deals with geopolitical issues. This is a way of ensuring that positions that cause divergence do not prevent a statement from being issued in agreement.
Earlier, at the Sherpa Trail, which also takes place in Rio, the Minister of Foreign Affairs, Mauro Vieira, commented that since the beginning of the conflict between Russia and Ukraine, in February 2022, the G20 has not been able to approve ministerial-level documents, because of divergences between countries about this topic.
The political arm of the G20 issued a statement indicating that geopolitical issues such as the wars in Gaza and between Russia and Ukraine should be discussed by leaders at the meeting, which will take place on November 18 and 19 in Rio de Janeiro. “This is a victory for Brazilian diplomacy and the Brazilian presidency of the G20,” said Vieira.
“The only reason there was no declaration in February was geopolitical. Now the Sherpas have found a way,” Rosito said. Sherpas are leaders who conduct negotiations on behalf of heads of state and government.
Engagement groups
The coordinator of the G20 Finance Track also highlighted that, for the first time, engagement groups and civil society organizations, that form the G20 Social, were able to take their demands directly to representatives of ministries and central banks. They participated in a discussion session on Monday (22).
Tatiana Rosito highlighted that in addition to the unprecedented nature of the proposal by the Brazilian presidency of the G20, the meeting was held considerably in advance of the November summit, which allows the demands of civil society to be better assessed by ministers, until reaching world leaders.
The ambassador described the experience as “very positive”. “Some of the demands are ambitious, but they are very convergent. The discussion was very rich and greatly appreciated by our peers”, she reported.
G20
The G20 is made up of 19 countries: South Africa, Germany, Saudi Arabia, Argentina, Australia, Brazil, Canada, China, South Korea, United States, France, India, Indonesia, Italy, Japan, Mexico, United Kingdom, Russia and Turkey, and two regional bodies: the African Union and the European Union.
The group’s members represent around 85% of the world economy, more than 75% of global trade and around two-thirds of the planet’s population.
Brazil’s presidency of the G20 will last until the summit in November. The next presidency will be held by South Africa.
