US urges G20 to back minimum tax deal

Photo: AP Treasury Secretary Janet Yellen met Mexican Finance Minister Arturo Herrera.

US Treasury Secretary Janet Yellen is focusing efforts to gather support to back the minimum corporate tax deal after the agreement was approved at last week's G7 summit in Britain, Reuters reported. In her latest move Yellen debated on the tax deal with the Finance Minister of Mexico Arturo Herrera.

Yellen's proposal for a global minimum tax is on the table of the G20 group which includes Mexico and China to support the plan when they meet in Venice in July. Yellen confirmed that Washington would not agree to any type of special treatment for China or other countries that would weaken a global minimum tax regime. G7 finance officials on 5 June agreed to support a minimum corporate tax rate of at least 15%, a move endorsed by G7 leaders.

Herrera said the two officials discussed the possible approval and implementation of the global minimum tax rate, but gave no details. He also said they discussed economic recovery in the region, including in Central America. Yellen reafirmed ongoing efforts in both countries to address the Covid-19 pandemic and to support a robust economic recovery. The Federal Reserve forecast the US economy would grow 7% in 2021, which should help the Mexican economy given extensive trade ties between the two neighboring countries.

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