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EU abstains in vote confirming new UN tax convention
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The negotiation process for the new convention is now set to begin in February 2025 and end in 2027 at which point delegates will be expected to have agreed to three legally binding UN tax agreements. </span></p><p class=\"rte-p\" dir=\"ltr\" style=\"text-align: left;\"><span style=\"white-space: pre-wrap;\">Some 125 UN member states voted in favour of the convention and nine voted against. Meanwhile, 46 nations, including all EU countries abstained. The United States and the UK were among the nine nay-sayers, and the new administration of US president-elect Donald Trump is highly unlikely to take an active role in the convention. </span></p><p class=\"rte-p\" dir=\"ltr\" style=\"text-align: left;\"><span style=\"white-space: pre-wrap;\">The convention’s draft mandate includes commitments to focus on corporate tax, wealth tax and environmental protection in the first two years. It includes references to French president Emmanuel Macron’s green tax agenda and will also look at ways to tackle illicit financial flows and harmful tax practices, one of the main demands of the Africa group in the UN, </span><a href=\"https://euobserver.com/eu-and-the-world/ar8385cda5\" target=\"_self\" rel=\"noreferrer\" class=\"rte-link\"><span style=\"white-space: pre-wrap;\">who have long complained that billions of dollars in tax revenues are lost</span></a><span style=\"white-space: pre-wrap;\"> because companies do not pay tax in their jurisdictions despite doing lucrative business in Africa. </span></p><p class=\"rte-p\" dir=\"ltr\" style=\"text-align: left;\"><span style=\"white-space: pre-wrap;\">Demand for the UN body has been led by a long campaign by the African group at the UN who argue that the Organisation for Economic Co-operation and Development, a Paris-based body which has led negotiations on corporate tax and beneficial ownership rules, is biased against the Global South because it does not include any developing countries among its members. </span></p><p class=\"rte-p\" dir=\"ltr\" style=\"text-align: left;\"><span style=\"white-space: pre-wrap;\">However, France has led a group of sceptics that the UN body will duplicate the OECD’s work. </span></p><p class=\"rte-p\" dir=\"ltr\" style=\"text-align: left;\"><span style=\"white-space: pre-wrap;\">Although the EU has limited competences on tax policy, almost all of which is decided by national governments, its member states still voted together. </span></p><p class=\"rte-p\" dir=\"ltr\" style=\"text-align: left;\"><span style=\"white-space: pre-wrap;\">During the final discussions ahead of the vote, officials from EU countries raised concerns about the fact that the mandate for the UN Tax Convention could be adopted by majority vote, rather than consensus. They added that this matter could also result in EU countries leaving the negotiations. </span></p><p class=\"rte-p\" dir=\"ltr\" style=\"text-align: left;\"><span style=\"white-space: pre-wrap;\">Insiders in New York say that there are divisions among EU states, pointing out that the bloc includes a number of high-tax countries, that lose large sums of money due to international tax abuse, but also others who have tax havens. </span></p><p class=\"rte-p\" dir=\"ltr\" style=\"text-align: left;\"><span style=\"white-space: pre-wrap;\">Tove Maria Ryding, tax coordinator at the European Network on Debt and Development (Eurodad), described the result as “tax history in the making”. </span></p><p class=\"rte-p\" dir=\"ltr\" style=\"text-align: left;\"><span style=\"white-space: pre-wrap;\">“Now that the mandate for the new UN Tax Convention has been approved, the world’s countries can initiate an ambitious and much-needed reform of the global tax rules,” Ryding added. </span></p>","abstract":"The European Union has hedged its bets on a new UN tax convention designed to draw up new global rules on tax transparency despite diplomats voting by a wide majority to set up the new body. 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auto;border-top:1px solid rgba(0, 0, 0, 0.12);border-bottom:1px solid rgba(0, 0, 0, 0.12)" class="_1qi3iy6"><div style="display:flex;flex-direction:row;gap:12px;flex-wrap:wrap;width:100%;align-items:start;justify-content:start;margin-bottom:-4px" class="_18i0fl6"><a href="/section/5002452f20"><div class="o"><div class="gb gc bu gj g3 cr g4 g0 g5 _1a2s23i" style="font-family:GeistRegular;color:var(--orange);text-decoration:underline">EU & the World</div><div class="b8"></div></div></a></div><span class="gb gc bu" style="font-family:GeistRegular;color:var(--grey);text-decoration:none;margin-top:16px"><span class="fc ii"><a href="/bio/eu7c6b1824"><span class="z3410u">by Benjamin Fox</span></a></span><span class="fc kp kq">, <!-- -->Nairboi, </span><div style="margin-top:8px"></div></span></div></div></div></div></div><div class="aq j am an bryade" style="max-width:620px;margin-top:32px;margin-bottom:76px"><div class="ah bu gs _150jpfw v3ktue _8mu7lq _1p9mi6m _1v5npaz _1h8xwyr yz64aj _18qfyyg tq69qt shy7gc _18qgrsu _143c5sd _17sqer0 mxxezy _87zhsz _1ykpvl6" style="font-size:18px;line-height:30px;position:relative"><p class="rte-p" dir="ltr" style="text-align: left;"><span style="white-space: pre-wrap;">The European Union has hedged its bets on a new UN tax convention designed to draw up new global rules on tax transparency despite diplomats voting by a wide majority to set up the new body. </span></p><p class="rte-p" dir="ltr" style="text-align: left;"><span style="white-space: pre-wrap;">The EU27 abstained en bloc in the vote on Wednesday evening (27 November) in New York. The negotiation process fo...</div><div style="padding:42px 16px;display:flex;flex-direction:column;gap:16px;width:100%;align-items:center;justify-content:center;border-top:1px solid rgba(0, 0, 0, 0.12);border-bottom:1px solid rgba(0, 0, 0, 0.12);margin-top:24px;margin-bottom:24px"><h4 class="f8 az fa gm _1piy4mz" style="color:var(--black)">Get EU news that matters</h4><p class="ah ga ai g9" style="font-weight:400;color:var(--black);text-align:center">Back our independent journalism by becoming a supporting member</p><button class="b8 a9 a8 l cb o cc a2 j55797 _1316jf6" style="color:var(--white);background-color:var(--orange);padding:0px 18px;height:30px;border-radius:20px;user-select:none;-ms-user-select:none;-moz-user-select:none;-webkit-user-select:none;margin-bottom:8px;cursor:pointer"><div style="display:flex;flex-direction:row;gap:8px;width:100%;align-items:center;justify-content:center"><span class="bs bu gr bt _1j3zqid">Register</span></div></button><span class="gb gc bu _1jx20bd" style="font-family:GeistRegular;color:var(--grey);text-decoration:none">Already a member? <a>Login here</a></span></div></div><div class="aq j am an _1h3f3w7" style="max-width:620px"><div style="display:flex;flex-direction:row;gap:12px;width:100%;align-items:center;justify-content:start;border-bottom:1px solid rgba(0, 0, 0, 0.12);padding-bottom:24px;margin-bottom:24px"><button class="b8 a9 a8 l cb o cc a2 c0vzui _5yrser" style="border:var(--border);color:var(--black);height:32px;width:32px;border-radius:50%;user-select:none;-ms-user-select:none;-moz-user-select:none;-webkit-user-select:none;padding:0;position:relative;cursor:pointer"><div style="display:flex;flex-direction:row;gap:8px;width:100%;align-items:center;justify-content:center"><svg width="30" height="30" viewBox="0 0 30 30" fill="none"><path d="M16.1971 9V11.8696C10.0748 12.7623 8.85654 17.1304 9.01273 19.2029C12.2613 16.9072 15.1559 16.8647 16.1971 17.1304V20L22.4444 14.7391L16.1971 9Z" stroke="currentColor"></path></svg></div></button></div><div style="display:flex;flex-direction:row;gap:6px;flex-wrap:wrap;width:100%;align-items:center;justify-content:start" class="_1iogabq"><a href="/section/5002452f20"><span class="gt f8 gn gu gv gw ai fa gx gy a2 _1g6rp5t" style="white-space:nowrap">EU & the World</span></a></div><div><h4 class="f8 az fa gm _1piy4mz" style="color:var(--black);margin-top:24px;margin-bottom:12px">Author Bio</h4><div class="ah bu gs _150jpfw v3ktue _8mu7lq _1p9mi6m _1v5npaz _1h8xwyr yz64aj _18qfyyg tq69qt shy7gc _18qgrsu _143c5sd _17sqer0 mxxezy" style="font-size:16px;line-height:24px"><p class="rte-p" dir="ltr"><span style="white-space: pre-wrap;">Benjamin Fox is a seasoned reporter and editor, previously working for fellow Brussels publication Euractiv. His reporting has also been published in the Guardian, the East African, Euractiv, Private Eye and Africa Confidential, among others. He heads up the AU-EU section at EUobserver, based in Nairobi, Kenya.</span></p></div></div><div class="gv"><h4 class="f8 az fa gm _1piy4mz" style="color:var(--black);margin-bottom:16px;margin-top:45px">Related articles</h4><div style="display:flex;flex-direction:column;gap:12px;flex-wrap:wrap;width:100%;align-items:start;justify-content:start;grid-template-columns:1fr" class="twgy2l"><a href="/eu-and-the-world/ar8eecccb0" style="width:100%"><div class="ah j eh a2 e3 gp ai gh h3 h4 fx _2oun9l">Spain and Germany lead UN push for new wealth taxes</div></a><a href="/eu-and-the-world/areab8ad9e" style="width:100%"><div class="ah j eh a2 e3 gp ai gh h3 h4 fx _2oun9l">EU divisions remain as UN tax convention prepares to start</div></a></div></div></div></div><div style="display:flex;flex-direction:column;gap:16px;width:100%;align-items:start;justify-content:space-between;max-width:300px;margin-left:32px;padding-top:8px" class="_1g3nzm6"><figcaption class="iv iw _16firde">Diplomats voted by a 125 to 9 majority to set up an UN tax convention, but the EU27 were among 46 abstentions.<!-- --> </figcaption><h4 class="f8 az fa gm _1piy4mz" style="color:var(--black)">Tags</h4><div style="display:flex;flex-direction:row;gap:8px;flex-wrap:wrap;width:100%;align-items:center;justify-content:start;margin-bottom:24px" class="_1ak3dcx"><a href="/section/5002452f20"><span class="gt f8 gn gu gv gw ai fa gx gy a2 _1g6rp5t" style="white-space:nowrap">EU & the World</span></a></div><div style="display:flex;flex-direction:row;gap:12px;flex-wrap:wrap;width:100%;align-items:start;justify-content:start"><h4 class="f8 az fa gm _1piy4mz" style="color:var(--black)">Author Bio</h4><div class="ah bu gs _150jpfw v3ktue _8mu7lq _1p9mi6m _1v5npaz _1h8xwyr yz64aj _18qfyyg tq69qt shy7gc _18qgrsu _143c5sd _17sqer0 mxxezy" style="font-size:16px;line-height:24px"><p class="rte-p" dir="ltr"><span style="white-space: pre-wrap;">Benjamin Fox is a seasoned reporter and editor, previously working for fellow Brussels publication Euractiv. His reporting has also been published in the Guardian, the East African, Euractiv, Private Eye and Africa Confidential, among others. He heads up the AU-EU section at EUobserver, based in Nairobi, Kenya.</span></p></div></div><div class="d3 ct d4 l mxeqxb"><span class="gb gc bu" style="font-family:GeistRegular;color:var(--grey);text-decoration:none;position:absolute;left:16px;top:16px;z-index:0">Ad</span><div id="dfp-half-page"></div></div><h4 class="f8 az fa gm _1piy4mz" style="color:var(--black);margin-bottom:16px;margin-top:45px">Related articles</h4><div style="display:flex;flex-direction:column;gap:12px;width:100%;align-items:start;justify-content:space-between;max-width:300px"><a href="/eu-and-the-world/ar8eecccb0"><div class="ah j eh a2 e3 gp ai gh h3 h4 fx _2oun9l">Spain and Germany lead UN push for new wealth taxes</div></a><a href="/eu-and-the-world/areab8ad9e"><div class="ah j eh a2 e3 gp ai gh h3 h4 fx _2oun9l">EU divisions remain as UN tax convention prepares to start</div></a></div></div></div></div><div class="cz d0 ct j d1 d2 k l _11d7t56 jkjuzg"><span class="gb gc bu" 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