BackWorld leaders pledge closer cooperation on economy, terror
G-20 leaders concede that global growth remains uneven, vow to choke off financial channels funding terrorism
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New Delhi: Leaders of the Group of 20 (G20) developed and developing countries on Monday pledged to work together to ensure price stability and support economic activity, conceding that global growth remains uneven, and vowed to choke off financial channels funding terrorism.
G20 members, including India, adopted a joint communique at the end of a two-day summit in Antalya, Turkey, resolving to lift their collective gross domestic product (GDP) by 2 percentage points by 2018.
Global economic growth is uneven and continues to fall short of expectations while the financial markets remain vulnerable to risks and uncertainties, the communique said; geopolitical challenges are increasingly becoming a global concern, it said.
“In addition, a shortfall in global demand and structural problems continue to weigh on actual and potential growth," the communique said.
Accepting India’s demand for pressing ahead with the Doha round of World Trade Organization (WTO) talks beyond the Nairobi ministerial meeting in December to resolve all pending issues, the G20 statement said the group remains committed to a strong and efficient multilateral trading system.
“We are committed to working together for a successful Nairobi Ministerial Meeting that has a balanced set of outcomes, including on the Doha Development Agenda, and provides clear guidance to post-Nairobi work," the communique said.
“We will also need to increase our efforts to implement all the elements of the Bali Package, including those on agriculture, development, public stock holding as well as the prompt ratification and implementation of the Trade Facilitation Agreement."
There have been concerns at attempts by some developed countries to close the Doha Development Agenda at the Nairobi ministerial meeting even if issues such as agriculture and public stock holding remain unresolved.
The G20 countries also endorsed a package of measures developed under the G20/OECD Base Erosion and Profit Shifting (BEPS) project to check tax evasion by multinational companies. “Widespread and consistent implementation will be critical in the effectiveness of the project, in particular as regards the exchange of information on cross-border tax rulings. We, therefore, strongly urge the timely implementation of the project and encourage all countries and jurisdictions, including developing ones, to participate," it said.
The Organization for Economic Co-operation and Development (OECD) in October spelled out a long-awaited plan to close the loopholes on tax-avoiding multinationals that cost countries more than $100 billion a year.
Low tax bills for big names such as Google Inc. and McDonald’s Corp., which managed to sharply reduce the amount due while remaining within the law, have provoked public outrage in recent years
“To monitor the implementation of the BEPS project globally, we call on the OECD to develop an inclusive framework by early 2016 with the involvement of interested non-G20 countries and jurisdictions which commit to implement the BEPS project, including developing economies, on an equal footing," the G-20 communique said.
Also on Monday, leaders of the G20 condemned the “heinous" terrorist attacks in Paris on Friday in which 129 people were killed as terrorists targeted restaurants, a concert hall and a football stadium.
Expressing concern over the passage of foreign terrorist fighters across borders “and the threat it poses for all States, including countries of origin, transit and destination", the G20 statement said: “We are resolved to address this threat by enhancing our cooperation and developing relevant measures to prevent and tackle this phenomenon, including operational information-sharing, border management to detect travel, preventive measures and appropriate criminal justice response. We will work together to strengthen global aviation security."
The strong language was not surprising, given that the G20 communique came within days of the Paris attacks that shocked the world with its scale of planning and execution. The Islamic State of Iraq and the Levant, a Sunni Islamist terrorist group, that announced the establishment of a Caliphate in large swathes of Iraq and Syria, has been blamed for the attacks.
Prime Minister Narendra Modi told a dinner hosted by Turkish President Recep Tayyip Erdogan late on Sunday that some countries continued to use terrorism as “an instrument of state policy" and called for such nations to be isolated. Modi also sought the criminalization of terror financing.
The Antalaya statement said that “the spread of terrorist organizations and significant rise globally in acts of terrorism directly undermine the maintenance of international peace and security and endanger our ongoing efforts to strengthen the global economy and ensure sustainable growth and development".
“We reaffirm that terrorism cannot and should not be associated with any religion, nationality, civilization or ethnic group," the statement said, adding that terrorism “cannot be justified under any circumstances, regardless of their motivation, in all their forms and manifestations, wherever and by whomsoever committed".
Underlining the centrality of the United Nations in fighting terrorism, the G20 statement said the fight against terrorism was a “major priority" for all countries “and we reiterate our resolve to work together to prevent and suppress terrorist acts through increased international solidarity and cooperation, in full recognition of the UN’s central role, and in accordance with UN Charter and obligations under international law".
The statement also spoke of the G20’s commitment to “tackling the financing channels of terrorism, particularly by enhanced cooperation on exchange of information and freezing of terrorist assets, criminalization of terrorist financing and robust targeted financial sanctions regimes related to terrorism and terrorist financing, including through swift implementation of (the G20’s) Financial Action Task Force (FATF) standards in all jurisdictions.
“We will continue to implement relevant FATF recommendations and instruments. We call on FATF to identify measures, including pertaining to legal framework, to strengthen combating of terrorism financing and targeted financial sanctions and implementation."
In his intervention at the G-20 working session on Monday, Modi sought greater international cooperation for the return of illicit money to its country of origin. “We must address the barriers of excessive banking secrecy, and complex legal and regulatory frameworks. We must also deepen cooperation against terrorism financing, including through targeted financial sanctions and more effective counter-terrorism financing tools," he added.
The leaders also vowed to seek a deal to curb climate change at an upcoming UN conference in Paris, AFP reported.
Negotiators haggled into the early hours as Saudi Arabia and India initially refused to include specific goals such as limiting global warming to less than two degrees Celsius above pre-industrialized levels. France, backed by the European Union, is working furiously to make the climate talks a success.
“Climate change is one of the greatest challenges of our time," AFP cited the draft communique as saying. “We reaffirm the below 2C degree climate goal," it said, underlining a “determination" to adopt a deal with legal force.
Mint’s Remya Nair and AFP contributed to this story.
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