The United Nations has officially launched negotiations for a Framework Convention on International Tax Cooperation, a move praised by global labor organizations as a vital step toward tackling tax evasion, harmful competition, and financial inequality.
Both the International Trade Union Confederation (ITUC) and Public Services International (PSI) expressed strong support for the talks, underscoring the need for a more equitable and inclusive global tax system.
ITUC General Secretary Luc Triangle and PSI General Secretary Danny Bertossa stated that the negotiations provide an essential opportunity for all countries, particularly developing nations, to influence tax policies that directly impact their economic sustainability. “A key concern driving the negotiations is the escalating competition between countries and multinational corporations, which has led to a steady reduction in tax rates,” they noted.
They further highlighted how many companies exploit tax loopholes by shifting profits to low-tax jurisdictions, depriving governments of crucial revenue required for essential services, infrastructure, and development.
The ITUC and PSI are advocating for key reforms to ensure the talks lead to tangible results. They call for a majority-based voting system to avoid delays caused by the need for unanimous decisions, as well as the fast-tracking of reforms that would tax multinational corporations based on their actual business activities, rather than allowing them to funnel profits to low-tax regions. Additionally, they emphasize the importance of implementing robust measures to prevent capital flight and ensuring greater transparency in global taxation.
In a joint letter to UN negotiators, Triangle and Bertossa urged all member states to approach the talks with “ambition and solidarity” to create a global tax framework that prioritizes fairness over corporate interests. They warned that without bold action, wealth inequality will continue to widen, and poorer nations will remain burdened with limited fiscal capacity.
The UN discussions, which began on February 3, will establish the groundwork for future negotiations. As the global labor movement advocates for progressive tax policies, the outcome of these talks could reshape international tax cooperation and promote greater economic justice worldwide.
“For many developing countries, these negotiations represent a crucial opportunity to gain financial independence and dismantle the systemic disadvantages imposed by current tax rules. The coming months will be decisive in determining whether the global community can agree on a tax system that benefits everyone, not just the wealthiest few,” they concluded.
