Africa Unity Forces Global Tax Reform Vote at Divided United Nations
African Union Resolution Pits Developing World Against Western Powers on International Tax Rules Overhaul
A United Nations General Assembly resolution calling for an inclusive global tax framework was approved by a large margin this week, highlighting divisions between developing and developed nations.
The resolution, put forward by African countries, passed by a vote of 125 in favor to 48 against, with 9 abstentions. It requests the creation of a framework convention on international tax matters aimed at rewriting existing rules to make them "inclusive and effective." The goal is to combat tax havens and abuses by wealthy individuals and multinationals.
According to the African Union, "the decade-long struggle of the countries of the Global South to establish a fully inclusive process at the United Nations to participate in setting the agenda and defining the standards on international taxation is now a reality."
The resolution was backed by China but opposed by Western nations including the United States, which has not ratified the OECD tax deal, and the United Kingdom. The text highlights lingering tensions between advanced economies and the developing world over global tax policymaking. Supporters argue new inclusive frameworks are needed at the UN, while critics warn of duplication and undermining existing efforts.
The resolution, titled “Promotion of inclusive and effective international tax cooperation at the United Nations,” stresses that international tax efforts should be "universal in approach and scope" and fully consider the different needs of all countries. It calls for an intergovernmental working group to be established to make recommendations on a framework convention on tax matters.
The resolution was introduced by Nigeria on behalf of the African Group. The representative argued it represents a "beacon of hope" for developing nations and aligns with aspirations laid out in the African Union's Agenda 2063 and the 2030 Agenda for Sustainable Development. He emphasized the need to set global tax standards, boost transparency and accountability, and combat illicit financial flows.
A rival amendment proposed by the United Kingdom was rejected by a vote of 55 in favor to 107 against. The amendment would have simply called for a tax cooperation "framework" rather than a full-fledged "framework convention." The representative of Nigeria blasted the amendment, stating it would "preserve the restrictive status quo where developing countries remain marginalized."
Delegates were divided in their remarks before the votes. The Russian Federation representative backed the African Group's resolution, arguing that existing forums like the OECD are neither inclusive nor effective. Indonesia's delegate affirmed the urgent need to address tax evasion and illicit flows, stating that the resolution "is a call to recognize the urgency of this issue."
In contrast, Switzerland's representative said a legally binding convention would not achieve effective cooperation, as rules established without consensus risk being ignored. The United States delegate said the resolution could undermine existing efforts and duplicate work in other forums. She expressed regret that attempts at compromise were ignored during negotiations.
After the resolution's adoption, several supporters highlighted global inequities in tax policymaking. South Africa urged member states to address "injustice in global taxing rights that is impoverishing millions." The Bahamas noted that international tax policies have long failed to address challenges faced by the Global South. Nigeria said the resolution marks progress in rectifying imbalances.
However, the United Kingdom regretted that consensus could not be reached, arguing that the lack of broad support risks damaging future tax cooperation efforts at the UN. Switzerland concurred, stating that a resolution lacking consensus cannot establish rules that will be implemented globally. Türkiye, which abstained from voting, called the final draft text far from consensual and expressed regret that the UK amendment was rejected.
The tax resolution was one of nine drafts approved as the General Assembly's Second Committee concluded its session this week. Other notable texts focused on topics like external debt sustainability, biodiversity, poverty eradication and South-South cooperation.