During the meeting of the leaders of the major economies in Cornwall, England, the world must turn its attention to the American President, Joe Biden, which seeks to reassert the dominance of United State on the world stage.
But there are many issues under discussion between group of seven — which includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States — which could have important implications for investors and businesses.
Investors who manage more than $41 trillion in assets warned this week that governments “risk losing a wave of investment” if they do not implement targeted policies to tackle post-pandemic climate change.
The United States has pledged to reduce greenhouse gas emissions by up to 52% below 2005 levels by 2030, while the United Kingdom has pledged to reduce its greenhouse gas emissions by 78% from 1990 levels by 2035.
But G7 leaders could go further at the UN climate talks in Glasgow, Scotland, in November.
Last weekend, G7 finance ministers backed changes to global tax rules, supporting a tax rate of at least 15% for multinational companies. The group also agreed that big companies should pay taxes where they generate sales, and not just where they have an actual presence — the shift could have dire consequences for tech giants like Apple, Facebook and Google.
The G7 leaders are expected to formally endorse the plan at the end of this week. But getting past the political agreement and discussing the details can be difficult.
British Finance Minister Rishi Sunak is pressing financial services firms to exempt them from the new system, while US Republican lawmakers line up to oppose the deal. Senator John Cornyn of Texas called it a “fantasy,” while Senator Pat Toomey of Pennsylvania criticized the “terrible deal.”
Although it is not a member of the Group of Seven, China – the world’s second largest economy – has a large presence at the summit. Biden is expected to try to persuade allies to join Washington in taking a tougher stance on Beijing in its actions in Xinjiang, Hong Kong and the South China Sea.
There are also reports that the meeting could produce a green alternative to China’s Belt and Road Initiative, which Beijing has used to fund international development projects and win concessions abroad.
Of course, there is a pandemic to consider as well. The leaders of the Group of Seven major industrialized countries are also considering whether to support the International Monetary Fund’s allocation of $100 billion to support immunization and economic recovery in the countries most in need.
The White House said in a statement on Friday that more details will be provided in the G7 leaders’ statement scheduled for this weekend.
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