The United Nations has officially launched negotiations on a Framework Convention on International Tax Cooperation, a move seen as a significant step toward tackling tax evasion, harmful competition, and financial inequality.
Global labour organisations, including the International Trade Union Confederation (ITUC) and Public Services International (PSI), have welcomed the initiative, calling it a long-overdue effort to create a fairer and more inclusive global tax system.
According to ITUC General Secretary Luc Triangle and PSI General Secretary Danny Bertossa, these talks present an opportunity for all nations—especially developing economies—to have a say in shaping tax policies that affect their fiscal stability.
“A major concern driving the negotiations is the increasing competition among nations and multinational corporations, which has led to a steady decline in tax rates. Many companies exploit loopholes by shifting profits to low-tax jurisdictions, depriving governments of vital revenue needed for social services, infrastructure, and development,” the labour bodies stated.
The ITUC and PSI have outlined key reforms to ensure meaningful progress in the negotiations, including:
• A majority-based voting system to prevent delays caused by the need for unanimous decisions.
• Taxing multinational corporations based on where they operate rather than where they shift profits.
• Stronger measures to curb capital flight and ensure transparent taxation.
In a joint letter to UN negotiators, Triangle and Bertossa urged member states to act with ambition and solidarity in creating a global tax system that prioritises fairness over corporate interests.
The UN negotiations, which began on February 3, will set the terms for future discussions. For many developing nations, this represents a critical opportunity to secure financial autonomy and address systemic disadvantages in international tax rules.
The outcome of these talks could reshape global tax cooperation, ensuring a more equitable distribution of resources and strengthening economic justice worldwide.
