On the penultimate day of its organizational session, the Intergovernmental Negotiating Committee (INC) tasked with drafting a new framework convention on international tax cooperation raced to find agreement on a crucial but contested issue: the rules that will guide the INC’s decision making.
After brief opening remarks, Chair Ramy Youssef suspended the plenary session to allow delegates to undertake informal deliberations on decision making. Many delegates reiterated their preferences, which fell broadly into two camps: one prioritized consensus, and the other favored simple-majority voting. Those who supported decision making by simple majority emphasized this rule would ensure their voices are heard and limit the potential for a “veto” by groups of countries. Those who preferred consensus underscored the importance of reaching universally accepted agreements that will be implemented by as many countries as possible.
Many delegates who preferred consensus-based decision making reiterated support for a “compromise proposal” that was presented on Tuesday by Norway and Mexico. This proposal would allow for voting with a two-thirds majority rule, after all attempts to achieve consensus have been exhausted. Others suggested considering additional options, such as three-fifths majority rule. Delegates also discussed a suggestion to establish different thresholds for voting under the framework convention and under the protocols. Deliberations on standards and precedents for such thresholds dominated the afternoon session.
On the topic of the second protocol, Chair Youssef introduced a proposal he said was based on discussions held in the preceding days. Bearing in mind some delegates’ concerns about the proposed topics, Chair Youssef suggested the INC select the prevention and resolution of tax disputes for the second protocol. He further proposed that the INC decide that other proposed topics (as set out in the Terms of Reference) would be carried forward for the consideration in future protocols. No decision was taken.
At the end of the day, Chair Youssef announced the “informal informal” consultations will be held in the morning, and plenary will reconvene in the afternoon.
To receive free coverage of global environmental events delivered to your inbox, subscribe to the ENB Update newsletter.
Select Images
Cezary Krysiak, Poland
Wassal Almalki, Saudi Arabia
Chair Ramy Youssef, Egypt