Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, concluded her in-person participation at the two-day G7 Finance Ministers’ Meeting in London, United Kingdom.
G7 Finance Ministers made progress on a number of issues including: the pandemic-related economic challenges countries continue to face and its uneven impact on people, including women, youth, and vulnerable populations; debt vulnerability in low-income countries; the importance of supporting global health priorities; initiatives to fight climate change; and international taxation.
Discussions on ensuring fair international taxation of multinational corporations resulted in an historic G7 agreement on the parameters of a broader international framework. Canada looks forward to carrying this momentum into the global discussions at the July G20 Finance Ministers and Central Bank Governors Meeting in Venice, which is seeking agreement among the members of the G20 and the OECD-led Inclusive Framework on Base Erosion and Profit Shifting.
The Deputy Prime Minister held bilateral meetings to advance Canada’s priorities, including with: the U.S. Treasury Secretary, Janet Yellen; the UK Chancellor of the Exchequer and G7 host, Rishi Sunak; the French Finance Minister, Bruno Le Maire; the European Commissioner for the Economy, Paolo Gentiloni; the German Vice Chancellor and Finance Minister, Olaf Scholz; the International Monetary Fund Managing Director, Kristalina Georgieva; the new Secretary-General of the Organisation for Economic Co-operation and Development (OECD), Mathias Cormann; and the President of the World Bank Group, David Malpass.
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“The last 16 months have been an extraordinary time for people all over the world. Our discussions at the G7 have been a critical opportunity to advance Canada’s national economic interest and to coordinate closely with our democratic partners on the challenges that lie ahead. Moreover, we have shown, today, that it is possible to end the race to the bottom on corporate taxation. Multinationals need to pay their fair share of taxes and the G7 has outlined a path to make this possible. This is good news for Canadians and Canadian businesses, as it will ensure a fair and level playing field for them in the global economy.”
Quick Facts
- The G7 is comprised of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. The IMF, World Bank, OECD, European Commission and the Eurogroup also participated in the G7 Finance Ministers’ Meeting.
- The G7 Leaders’ Summit will take place in Carbis Bay, United Kingdom from June 11-13, 2021.
- Canada is committed to ensuring that digital corporations, like corporations in all sectors, pay their fair share of tax on revenues earned by doing business in Canada. Canada has a strong preference for a multilateral approach to this issue and is optimistic about the progress being made this year. In the interim, Canada intends to take action. That is why, as of January 1, 2022, a Digital Services Tax will apply until an acceptable multilateral approach comes into effect.
- The federal government’s recent budget, A Recovery Plan for Jobs, Growth, and Resilience, will create almost 500,000 jobs and training opportunities, including 215,000 for young people, support small businesses, make investments in the Canadian economy’s green transformation, and work to build a Canada-wide early learning and child care system so that parents, especially mothers, can fully participate in the workforce.
- The Deputy Prime Minister and the Canadian delegation travelling to the UK have followed strict public health protocols and procedures during their visit and while in transit. They will also adhere to all quarantine requirements in Canada, including quarantining in a government-authorized hotel upon return to Canada.