2018 Final Communique

2018 Final Communique Introduction 1. We, the leaders of the G20 met at American University in Washington, DC from October 5-7, 2018. 2. We resolved to tackle some of the most pressing issues related to issues such as international trade & tariffs, global tax cooperation, the future of work in the finance track; while also resolving to tackle issues such as climate change & energy, migration and refugees, and gender equality in the sherpa track. 3. We reaffirm our common but differentiated responsibilities to solving these issues and reaffirm the G20’s status as a consensus-based organization in the drafting of this communique. Finance Track: International Trade & Tariffs 1. We affirm our commitment to maintain and strengthen a rules-based, and transparent international trading system. The G20 members recognize that the fairness and predictability of the international trading system require abiding by WTO rules, mechanisms and bodies. We reaffirm our commitment to the WTO as a forum for resolving our current and future trade disputes. 2. In circumstances where states claim that there is unfairness in the international trade system, bilateral and multilateral solutions must be prioritized over unilateral responses. Unilateral responses are less productive than multilateral solutions because they fail to take into account the diverse capacities, capabilities, and needs of the emerging and established economies. 3. We remain committed to bilateral, and multilateral trade agreements as a means of furthering inclusive growth. Trade barriers harm the greater global economy by negatively affecting jobs, movement of goods, financial capital, technological advancement, education, and labor mobility. The G20 members reaffirm existing treaties regarding intellectual property rights with regards to international development levels. 4. Given the impacts of environmental changes and natural disasters on global economic growth and sustainable development, the G20 is committed to integrating social and environmental requirements guidelines in future international trade agreements. We commit to the development of G20 Responsible Trade Agreements that include provisions for social, sustainable and environmental equity and equality in accordance with the United Nations Sustainable Development Goals. 5. We affirm our commitment to strengthening trade partnerships based on dialogue, transparency, and respect for rules. We dedicate ourselves to re-commence the stalled negotiations on the Doha Round. By doing so, we will ensure the development of trade rules that are beneficial to all. Implementing the Doha Round will contribute to sustainable development by improving trade conditions. This will, in turn, secure the rights of marginalized producers and workers, especially in the Global South. This will not only improve the conditions of the agricultural producers but also encourage the development of more sustainable environment-based practices. 6. We commit to strengthening Intellectual Property Rights within the World Trade Organization to more consistently enforce IP Rights to create a fairer playing field for international firms, developing countries, and developed countries. 7. We call for greater integration of the industrial production of developing economies in global value chains. This is in the interest of supporting inclusive development in accordance with established trade practices. 8. We recognize that diversifying the world economic portfolio by investing in developing nations is of critical importance. In the new multipolar international order it is vital that all developing nations have access to the right capabilities and resources; to ensure their development is sustainable and continuous. 9. The G20 is committed to promoting and initiating multilateral trade agreements and negotiations, whilst ensuring that environmental protection language in these agreements are taken into account considering that our common goal is to achieve global economic growth responsibly, through sustainable development. Finance Track: Global Tax Cooperation 1. We strive for greater cooperation on global tax policy. We will aim to develop equitable and globally inclusive tax policies to support transparency in cases of tax fraud and tax evasion and to address corporate tax, individual evasion, all while maintaining respect for each country’s sovereign right to enforce tax regulation. Countries should reduce incentives for firms to engage in aggressive tax planning. 2. We recommend a revisitation of the BEPS framework to ensure its feasibility and attainability in developing countries, by balancing national discretion in the application of BEPS with support from the International Labor Organization, the World Trade Organization, and the World Bank. We suggest countries should prioritize reporting to these bodies on tax revenue to better scrutinize the efficiency of international tax cooperation. 3. The G20 remains committed to seeking a consensus-based solution to address the impacts of digitalization of the economy on the international tax system. We encourage initiatives proposed among the G20 nations which hold the digital sphere accountable in terms of taxation. We commit to working with the UN Committee of Experts on International Cooperation in Tax Matters to create effective tax policy that generates tax revenue from the digital economy in the countries where the profits are generated. 4. We affirm the right of nations to have a value-added tax, including on digital transactions, that take place within their borders. 5. We encourage members to enact automatic information exchange treaties regarding taxable economic activity. In order for the developing nations to participate in this reciprocal exchange of information, we encourage developed nations to provide developmental assistance through financial, technical, and administrative support. 6. We urge the G20 nations to remain cognizant of the global impacts of rapid and drastic shifts in taxation and monetary policies. 7. We suggest a partnership with the UNDP, the World Bank, and the ILO to provide information and data that would help create sustainable policy decisions with the intention of building up the economy to create new markets and a path of economic self-determination in emerging economies. We additionally reaffirm our commitment to the recently created Africa Partnership through direct investment and development. We further encourage the creation of both a South-East Asia Partnership and a CARICOM Partnership that focuses on sustainable development and inclusive economic growth in these regions. We commit to developing sustainable infrastructure in these regions. Finance Track: The Future of Work 1. The G20 encourages a people-centered strategy towards the future of work including international standards and norms, social dialogue, social protection and job creation. We support the development of agreements that protect worker rights, update labor laws, and limit the importation of goods produced by slave labor. 2. To decrease the global gender employment gap, the G20 encourages a global promotion of female participation in trade schools. The G20 further encourages countries to increase the role of higher education and invest in educational opportunities for all. We strongly express that the modernization of education curricula and teacher training is an urgent priority for all member nations facing worker displacement. 3. The G20 recognizes that technological innovation is the key to the future of the global economy; however, the G20 also recognizes that technological innovation has led to the displacement of workers. To offset the displacement of workers, members will continue to invest in technological innovation while investing in education and services to prepare workers to participate in the future of the workforce. Also, we acknowledge that automation poses a challenge to some economies, and the G20 encourages countries to explore innovative solutions to solve future social and economic inequality issues 4. G20 members recognize that nations should consider implementing effective economic incentives, such as a loan forgiveness program, for students that study in universities to encourage them to bring their skills back home to developing countries. In addition, we urge secondary-education institutions to consider satellite sites in developing countries to enhance educational opportunities. We also encourage the exchange of teachers and students between developed and developing countries to facilitate knowledge, build skills, and enhance cultural exchange to narrow the disparity in income, technology and capacity to innovate. 5. We commit to creating multilateral partnerships that focus on sustainable development and inclusive economic growth. Partnering with organizations such as the UNDP, the World Bank, WTO, and the ILO to provide information and data that would help create sustainable policy decisions that encourage the creation of new markets and a path of economic self-determination in emerging economies. We commit to developing sustainable infrastructure in these areas. We additionally reaffirm our commitment to the recently created Africa Partnership through direct investment and development. Sherpa Track: Climate Change & Energy 1. The G20 sends its condolences to the victims of the recent natural disasters around the world and acknowledges that these disasters were likely exacerbated by climate change. We are alarmed by the increasing frequency of these disasters

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