“First, I think this is an economic surrender that other countries will be happy to go along with while America is making itself so uncompetitive,” said Brady. “And second, I think there are too many competing interests here for them to get an agreement that Congress would approve.”
Other nations must also decide how to translate their obligations into domestic law.
Discussions will focus on the mechanisms to change the taxation of the largest and most profitable companies and to make exemptions for financial services, oil and gas companies. There are already concerns that carve-outs could lead to new tax loopholes.
Ms. Yellen, who is on her second trip abroad as Finance Minister, will hold bilateral meetings with many of her counterparts, including officials from Saudi Arabia, Japan, Turkey and Argentina. China, which signed the global minimum tax framework, is not expected to send officials to the meeting of finance ministers and central bank governors, so there will be no discussions between the world’s two largest economic powers.
Saint-Amans was optimistic about the way the tax negotiations, which were centered on life support in the last year of the Trump administration, attributed this largely to the United States’ new diplomatic approach.
“It took a US election and some work at the OECD,” he said.
During the panel discussion on taxes and climate change, Ms. Yellen’s colleagues said they appreciated the United States’ spirit of cooperation.
Chrystia Freeland, Canada’s Deputy Prime Minister and Treasury Secretary, said it was “welcome” and “transformative” to have the United States back at the table to tackle climate change. Mr. Le Maire thanked the Biden government for re-entering the Paris Agreement.
“The US is back,” he said.
Jim Tankersleycontributed coverage from Washington andLiz Alderman Contribution to reporting from Paris.