Highlights and images for 3 February 2025

Negotiations to create a new international framework convention on tax cooperation kicked off on 3 February, as the Intergovernmental Negotiating Committee (INC) convened its first meeting. During the opening of the four-day organizational session, delegates offered general statements on this new stream of negotiations, with many anticipating this convention will fill gaps in the international financial architecture.

Many expressed hope that the convention will contribute to equity and sustainability for developing countries, in particular, by tackling problems such as tax base erosion and profit shifting.

Most delegates focused their comments on preferences for two key items on the meeting agenda: the rules by which they will take decisions during the negotiating process, and the subject of the second early protocol. The Terms of Reference (TOR) establishing the INC calls for the first session to determine these agenda items.

On decision making rules, UN Member States offered differing perspectives on how INC decisions should be taken, with some calling for “simple majority,” some expressing support for UN General Assembly decision-making processes, and others indicating decisions should be based on consensus. Many also stressed the need to move quickly to address the challenges that will be targeted by the new convention and adhere to the timeline in the TOR, with some emphasizing voting would help maintain momentum and prevent countries from dragging their feet. Many of those who favored consensus decision-making cited the importance of ensuring the new convention reflects the concerns of all participating Member States, noting this will be essential to effective implementation. 

Delegates also outlined their preferences for the topic of the second early protocol (Protocol II). Delegates are working with a list of priority issues set out in the INC’s TOR, including: taxation of the digitalized economy; measures against tax-related illicit financial flows; prevention and resolution of tax disputes; and addressing tax evasion and avoidance by high-net worth individuals and ensuring their effective taxation in relevant Member States. Some countries said negotiations should focus on issues for which there is solid and robust analysis and evidence-based solutions that are implementable.  

During the afternoon, delegates engaged in a brief discussion of organizational matters, including the modalities for participation of observers. Following a statement by the US indicating it would no longer participate in the INC process, the INC adjourned its work for the day. The Committee will resume its work on Tuesday morning with a focus on the topic to be addressed in Protocol II.