G7 agree to back 15% global minimum corporate tax rate, more taxes for tech giants

The Group of Seven wealthy democracies agreed Saturday to support a global minimum corporate tax rate of at least 15% in order to deter multinational companies from avoiding taxes by stashing profits in low-rate countries.

Read more at: https://www.usatoday.com/story/money/taxes/2021/06/05/g-7-nations-support-15-global-minimum-tax-corporations-tech-giants/7560398002/

Power Shift: US awol from world stage as China tries on global leadership for size

When the UN security council and the G7 group sought to agree a global response to the coronavirus pandemic, the efforts stumbled on the US insistence on describing the threat as distinctively Chinese.

There are other reasons for the lack of collaboration in the face of a global crisis, but the focus on labelling the virus Chinese and blaming China pursued by the US secretary of state, Mike Pompeo, helped ensure there would be no meaningful collective response from the world’s most powerful nations.

For some US allies, the fixation on words at a time when the international order was arguably facing its greatest challenge since the second world war encapsulated the glaring absence of US leadership.

Read more at; US awol from world stage as China tries on global leadership for size | Coronavirus outbreak | The Guardian

G7-Trump creates Chaos at G7 - as he calls for total barrier-free trade within the G7 and a return of Russia to the group

G7 Chaos: Merkel and Trump staring each other down

Despite imposing tariffs on major US allies, the anti-globalist president has called for free trade within the G7. He also insisted US allies would be forced to concede to US trade terms because the US "can't lose."

Trump, who railed against globalization in his election campaign, said he wanted all G7 nations to remove any tariffs, subsidies and other trade barriers.\

"You go tariff-free, you go barrier-free, you go subsidy-free," Trump opined, calling it "the ultimate thing." He said other world leaders reacted positively to the idea.

His economic adviser Larry Kudlow backed up the call, saying, "We’re going to clean up the international trade system."

But Trump's claims that he is in favor of global free trade would appear contradictory to his recent imposition of tariffs on US allies, much to their collective discontent.

Trump insisted US allies would yield to his demands of a trade rebalance, warning that the US would crush any opposition in a potential trade war.

"If they retaliate they're making a mistake …We win that war 1,000 times out of 1,000."

"They do so much more business with us than we do with them that we can't lose … When you’re down $375 billion you can't lose," he said, likely referring to the trade imbalance with China.

He said he could tell from the smiles of European leaders at the G7 that they knew that "the gig is up" and that they would negotiate terms with Washington.

Trump repeated his call for Russia to be allowed back into the alliance of world powers. It was kicked out of the G8 in 2014 for annexing Crimea from Ukraine.

"We're looking for peace in the world. We're not looking to play games."

"I think it would be good for Russia, I think it would be good for the US, I think it would be good for all of the countries of the current G7."

But when asked about returning to the G7 Russian Foreign Minister Sergei Lavrov said on Saturday that Moscow "never asked anyone to return" to the G7 and that Russia was happy working with the G20.
 
EU-Digest

G7 meeting Canada: Trump calls for Russia to be reinstated to G-7, threatens allies on trade - by Damian Paletta, Anne Gearan and John Wagner

President Trump on Friday said Russia should be readmitted to the Group of Seven leading economies, breaking with other world leaders who have insisted that Moscow remain ostracized following its 2014 annexation of Crimea.

“Now, I love our country. I have been Russia’s worst nightmare … But withthat being said, Russia should be in this meeting,” Trump said Friday as he left the White House. “It may not be politically correct, but we have a world to run. … They should let Russia back in.”

Trump’s comments, made as he was departing for the annual G-7 summit in Canada, have the potential to further upend talks with other leaders here. U.S. intelligence officials believe Russia interfered in the 2016 election, and part of this year’s G-7 summit was supposed to focus on protecting democracies from foreign meddling.

Trump has sought to improve relations between the United States and Russia since taking office. The U.S. government and other nations have imposed strict sanctions on Russia related to its annexation of Crimea from Ukraine, and those penalties remain in effect.

Read more: Trump calls for Russia to be reinstated to G-7, threatens allies on trade - The Washington Post