G20 finance ministers meet to seek consensus before US election

Negotiators from the G20 major economies have agreed to leave discussion of the conflicts out of a joint statement by the finance leaders gathering on July 25-26 in Rio de Janeiro, Brazilian diplomats said last week.

Finance ministers and central bankers from the Group of 20 meet this week to renew efforts to reach consensus on economic policy ahead of the U.S. election, and will avoid discussing the wars in Ukraine and Gaza to try to prevent them dominating the talks.

Negotiators from the G20 major economies have agreed to leave discussion of the conflicts out of a joint statement by the finance leaders gathering on July 25-26 in Rio de Janeiro, Brazilian diplomats said last week.

Pressure has mounted to make progress before the next finance track meeting in October – the last before a G20 summit gathering heads of state in November, the month when U.S. elections take place.

"We're arriving in July aware that we need to close deals. October will be completely overshadowed by the U.S. election," said one of the Brazilian officials, who requested anonymity so he could speak openly.

The strong polling of former U.S. president Donald Trump, who has called for massive tax cuts for individuals, could undermine the idea of a global billionaires tax. Brazil is still prioritising a joint declaration on international tax cooperation during its G20 presidency.

Another Brazilian official who asked not to be named said tax was "a central theme in the finance track this year, regardless of the U.S. election".

Brazil has won backing for the idea from Belgium, Colombia, France and Spain, as well as the African Union and South Africa, which will assume the G20 presidency next year.

It is seeking further support by casting the proposal as a way to make the global tax system more progressive, aligning with its G20 agenda to reduce global inequality.

That marks a shift from Brazil's approach in Washington in April, when it linked the billionaire tax proposal with funding for climate policy and global poverty reduction during the IMF and World Bank spring meetings.

Brazil has won backing for the idea from Belgium, Colombia, France and Spain, as well as the African Union and South Africa, which will assume the G20 presidency next year.

It is seeking further support by casting the proposal as a way to make the global tax system more progressive, aligning with its G20 agenda to reduce global inequality.

That marks a shift from Brazil's approach in Washington in April, when it linked the billionaire tax proposal with funding for climate policy and global poverty reduction during the IMF and World Bank spring meetings.