New UN document highlights US efforts to weaken global development finance. Image: ZAWYA.
(The Post News)– The United States is attempting to weaken a global agreement designed to support developing countries struggling with climate change and other issues, according to an internal United Nations document.
Under President Donald Trump’s administration, the US opposes draft reforms to the world’s financial system aimed at helping developing countries, including changes to taxation, credit ratings, and fossil fuel subsidies. Additionally, the US wants to remove references to “climate,” “gender equality,” and “sustainability” from the document.
A leaked United Nations document reveals the United States is attempting to undermine a global agreement aimed at supporting developing countries struggling with climate change and other issues. The Trump administration opposes reforms to the world’s financial system designed to help these countries, including changes to taxation, credit ratings, and fossil fuel subsidies.
The document sheds light on the Trump administration’s efforts to impose its “America First” agenda on global institutions addressing systemic crises, including resisting initiatives to combat climate change and promote diversity. This stance may pressure other countries to accept a weaker deal at the 4th International Conference on Financing for Development in Seville, Spain.
The conference aims to shape the strategic direction of global development finance institutions for the next decade. Countries have agreed to broaden tax cooperation efforts to help developing countries set rules, with over 140 countries involved. The US position contradicts the efforts of other countries working together to develop taxes that support sustainable development.
A recent United Nations document reveals the Trump administration’s efforts to impose its “America First” agenda on global institutions addressing systemic crises. This agenda includes resisting initiatives to combat climate change and promote diversity. The document is related to the 4th International Conference on Financing for Development (FFD4), scheduled for June in Seville, Spain.
The US opposes several key measures, including tax reforms, credit rating system changes, and fossil fuel subsidy reforms. The conference aims to shape the strategic direction of global development finance institutions for the next decade. The US position may pressure other countries to accept a weaker deal, given the talks’ goal of adopting a consensus document.
The conference’s objective is to bring world leaders together to set underlying rules and priorities for financing development goals over the next decade. Tom Mitchell, executive director of the International Institute for Environment and Development, emphasizes the conference’s importance in shaping the world’s development finance institutions.
The US statement asserts that international financial institutions have independent mandates and authorities, and the US does not support attempts to dictate their priorities or activities. The US wants to remove references to a “package of reforms” for sustainable development and replace a commitment to reform the international financial architecture with a pledge to recognize the need to enhance its resilience and effectiveness.
UN Secretary-General Antonio Guterres urges all countries to focus on solutions at the conference. The US position on development has become tougher under Trump, but the negotiating document shows the US remains supportive of efforts to work with the private sector and foster innovation. The global reforms aim to help poorer nations cope with weather disasters worsened by climate change and boost economic development using low-carbon energy.
The US objects to exploring “global solidarity levies,” including taxes on polluting activities or the super-rich to finance sustainable development. Other countries objecting to this measure include Russia, Saudi Arabia, and China. The US has withdrawn from the Paris climate agreement, cut US foreign development aid significantly, and embarked on trade wars hurting poorer nations.
The US is pushing to remove several key points from a global agreement, including requiring companies to pay taxes where they operate, supporting tax transparency in developing countries, and phasing out fossil fuel subsidies.
The US also wants to scrap a proposal to reform credit rating systems to help poorer countries invest in green projects without penalty.
Additionally, the US opposes ensuring uninterrupted funding for social protection and essential spending during crises. The US has significant influence in global financial institutions, but the draft agreement is likely to evolve as negotiations continue.
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