UN tax negotiations: A crucial first step

The International Trade Union Confederation (ITUC), along with Public Services International (PSI), welcomes the start of negotiations on a UN Framework Convention on International Tax Cooperation as a crucial step towards a more inclusive and effective global tax system.

Credit: JAKUB PORZYCKI NurPhoto

Stronger international tax cooperation is urgently needed to address:

  • Harmful competition between countries and corporations that drives tax rates downward.
  • Widespread corporate tax evasion, which deprives countries of critical revenue.
  • The need to strengthen the fiscal capabilities of poorer nations, enabling them to invest in social protection, essential public services and sustainable development.

The start of the discussions on 3 February will set the terms for decision-making throughout the negotiation process. The global labour movement has long demanded that the process be democratic, fair and inclusive, ensuring that all countries have a voice in shaping international tax rules to achieve the best outcomes for working people.

Other key demands include:

  • Majority voting to prevent negotiations from stalling due to the need for unanimous decisions.
  • Fast-tracking reforms to tax multinational corporations based on where they operate, rather than where they shift their profits.
  • Strong measures to ensure that capital is taxed fairly and does not continue to evade national tax systems.

In a joint letter to UN negotiators, ITUC General Secretary Luc Triangle and PSI General Secretary Danny Bertossa said: “We call on all Member States to approach these negotiations with ambition and solidarity. By prioritising majority-based decision-making and fast-tracking the taxation of corporate income and capital, Member States can ensure the Framework Convention delivers on its promise of a fairer global tax system that benefits everyone – not just the wealthiest few.”

The ITUC and PSI urge all UN member states to engage in the negotiations with ambition and solidarity, ensuring that the final framework delivers on the promise of a fairer global tax system.