Countries reached key decision-making and tax dispute resolution agreements in the first round of organizational negotiations for a UN Tax Convention. A last-minute push by wealthier nations to secure de facto veto power was rejected, while civil society and Global South countries ensured that issues like illicit financial flows and taxing extreme wealth remained on the table. Meanwhile, the US isolated itself by walking away from the process as the rest of the world moved forward.
The first organizational session of the Intergovernmental Negotiating Committee for the UN Tax Convention has concluded with significant progress toward just and inclusive global tax governance. Countries demonstrated flexibility in agreeing on decision-making rules and defining the topics of two key protocols—particularly the second one on tax dispute prevention and resolution, which could provide significant relief for Global South countries burdened by costly tax disputes with multinational corporations.
While the United States walked out on day one, the rest of the world is moving forward. A last-minute attempt by France, Italy, Malta, the UK, and the Czech Republic to introduce decision-making by consensus—a move that would have effectively given veto power to wealthier nations—was defeated by a vote of 98 to 42. Instead, decisions on the convention will be made by a simple majority, while decisions on protocols will require a two-thirds majority, ensuring a more democratic and balanced process.
The adoption of tax dispute prevention and resolution as the topic of the second protocol is highly relevant, particularly for Global South countries that spend vast resources on costly tax disputes with multinational corporations. While some critical issues—such as illicit financial flows (IFFs) and the taxation of high-net-worth individuals (HNWIs)—were not selected as protocol topics at this stage, Colombia and the Africa Group successfully pushed for language ensuring that these issues remain on the table for future discussions.
The first protocol, addressing taxation in the digital economy, will also be a step forward in modernizing international tax rules. However, for CESR and many civil society organizations, the ultimate goal is a strong and ambitious UN Tax Convention—one that doesn’t just include these issues as optional protocols but enshrines them in its core commitments.
The United States’ decision to exit the negotiations is a significant miscalculation. As the Tax Justice Network put it, the US has scored its own goal by isolating itself while the rest of the world advances toward a more just and effective tax system. See also the FfD Chronicle here. Their departure highlights the need for a genuinely multilateral process—one that does not cater to the interests of a handful of powerful nations but instead works for the rights and needs of all.
A tax system that strengthens human rights in a time of rising pushback against equality and justice
When rights, dignity, and diversity face growing resistance, establishing a strong UN Tax Framework Convention is more critical than ever. Around the world, we see increasing inequality, political retrenchment, and rhetoric that seeks to undermine the rights of disadvantaged communities. However, the global response to these challenges is not passive. By securing a just international tax system, countries can unlock much-needed resources to invest in public services, social protections, and economic justice—foundations for a world that reinforces rights rather than erodes them.
As Dr. Maria Ron Balsera, CESR’s Executive Director, puts it:
“The outcomes of the organizational session are a step in the right direction, but we must ensure the final UN Tax Framework Convention delivers real systemic change. That means creating tax rules that actively reduce inequalities, protect human rights, and end the corporate and high-networth individuals tax abuse that drains public resources from countries that need them most.”
The negotiations will continue, and their outcome will be critical. In a time of democratic backsliding and weakening commitments to fundamental freedoms, a fair and rights-based tax system is a powerful tool to push back against this erosion. The challenge now is ensuring that this process leads to a tax system that prioritizes equity, accountability, and human rights for all, not just for the wealthiest few.