Research in Brief 152
Negotiations have started on a new United Nations (UN) Framework Convention on International Tax – a development that could shift the balance of power in international tax. This area has long been dominated by the Organisation for Economic Co-operation and Development (OECD) and G20 – the Convention could provide the UN with a more central role in shaping global tax policies. This process was set in motion in December 2022 by UN resolution 77/244, ‘Promotion of inclusive and effective international tax cooperation at the United Nations’. An Ad Hoc Committee was formed to develop the terms of reference (ToR) for drafting the Convention – this approved draft ToR in August 2024. The African Group at the UN are driving this effort, with support from much of the global South. The global North remains sceptical. The push for a new framework comes amidst a backdrop of increasing complexity in international tax standards, and a perceived imbalance in allocation of taxing rights between countries. A significant concern is that there is no political body to oversee the work of technical institutions like the Inclusive Framework. This has resulted in a disconnect between technical negotiations and political decision-making in some global South countries.
This research analyses discussions that took place in 2024. It distils the most important lines of conflict around negotiating the UN Framework Convention, and articulates the main scenarios for a way forward.
Summary of Working Paper 218.