Yellen Says Mexican G20 Counterpart Countries Should Support Global Minimum Tax | Invest News

WASHINGTON (Reuters) – U.S. Treasury Secretary Janet Yellen met with Mexican Finance Minister Arturo Herrera on Thursday, stressing the importance of securing support from the Group of 20 major economies for a global minimum tax proposal, said the Trésor in a press release.

Yellen, whose proposal for a global minimum tax of at least 15% has won backing from the Group of Seven advanced economies, is now urging G20 countries – including Mexico and China – to back the plan at their meeting in Venice in July.

Yellen told U.S. lawmakers that Washington would not accept any kind of special treatment for China or other countries that weakens a global minimum tax regime.

G7 finance officials agreed on June 5 to support a minimum corporate tax rate of at least 15%, a move approved by G7 leaders on Sunday.

In his discussion with Herrera, Yellen also affirmed the Treasury’s commitment to deepen cooperation with Mexico on illicit financing and to work together to address the root causes of migration from northern Central America, said the Treasury.

Herrera, who met with Yellen in Washington, said the two officials discussed the possible approval and implementation of the global minimum tax rate, but gave no details.

He also said they discussed the economic recovery in the region, including Central America.

The Treasury said Yellen had reviewed ongoing efforts in both countries to tackle the COVID-19 pandemic and support a strong economic recovery.

The Federal Reserve predicted on Thursday that the US economy would grow 7% in 2021, which should help the Mexican economy given the close trade ties between the two neighboring countries.

Herrera also met with the Managing Director of the International Monetary Fund, Kristalina Georgieva, for what she described in a tweet as a “very productive face-to-face meeting on global and regional economic recovery.”

(Reporting by Andrea Shalal; Editing by Jacqueline Wong & Shri Navaratnam)

Copyright 2021 Thomson Reuters.

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