G20 Economic Leaders Reach 14 Agenda Items and Agreements Including Pandemic Response Cooperation

[Image source=AP Yonhap News]

[Asia Economy Reporter Lim Chun-han] The first meeting of finance ministers and central bank governors from the Group of Twenty (G20), including South Korea and Indonesia, concluded with agreements on 14 agenda items such as cooperation to respond to the impact of the COVID-19 pandemic.

According to Antara News and others on the 19th, the Indonesian government, the G20 chair country this year, announced a joint statement in the afternoon containing the results of the first G20 Finance Ministers and Central Bank Governors (FMCBG) meeting. The two-day meeting held on the 17th and 18th saw the finance ministers of the United Arab Emirates and Australia attend in person in Jakarta, while the rest participated virtually.

At the first meeting, the G20 finance ministers and central bank governors reached agreements on 14 agenda items across six sectors. Based on this, the member countries will hold three more meetings by mid-October to finalize the agreement, which will then be announced at the G20 summit. The economic leaders of the participating countries agreed to pursue an equitable recovery not only economically but also in health aspects such as vaccine supply, treatment, and diagnostics. They also agreed to mobilize all means to address the pandemic’s impact and prioritize integrated and coordinated measures for pandemic control.

The joint statement also included an agreement to implement a digital tax starting in 2023. The agreement involves a “Google tax” requiring global corporations that provide services and generate revenue in overseas markets to pay taxes to the countries where those markets are located. It also introduces a 15% global minimum tax rate to block tax avoidance by multinational corporations with consolidated financial statement revenues exceeding 750 million euros (approximately 1 trillion won). The agenda also selected measures to strengthen the long-term financial resilience of the international financial architecture, including the development of regional currency markets and the promotion of sustainable capital flows.

Support measures for vulnerable countries were also included in the joint statement. The G20 economic leaders agreed to request the International Monetary Fund (IMF) to allocate Special Drawing Rights (SDRs) and establish a Resilience and Sustainability Trust (RST) to assist vulnerable countries. They also shared recognition on deriving basic principles for debt restructuring for some poor countries such as Chad, Ethiopia, and Zambia that seek debt relief, as well as on revitalizing infrastructure investment in a sustainable, inclusive, accessible, and affordable manner.

Regarding climate change response, the leaders reaffirmed the commitment of developed countries to provide $100 billion (118 trillion won) annually to developing countries and agreed to continue discussions on promoting sustainable development and strengthening global financial resilience. Additionally, the joint statement comprehensively addressed the benefits and risks of financial digitalization and included support for the activities of the Financial Action Task Force (FATF) as well as the use of digital technology to improve productivity among women, youth, and small and medium-sized enterprises.

Meanwhile, major foreign media reported that a phrase stating “The G20 will continue to monitor major global risks such as the recent escalation of geopolitical tensions” was present in the draft joint statement but was removed from the final version due to opposition from China and Russia.

This content was produced with the assistance of AI translation services.