Concluding Its Session, Second Committee Approves 4 Resolutions, 2 Decisions, including Texts on Tax Cooperation, Affordable Energy Access
The Second Committee (Economic and Financial) concluded its seventy-ninth session today, approving four draft resolutions and two draft decisions on a range of topics, with a vote on a text taking up international tax cooperation.
Nigeria’s delegate, speaking for the African Group, introduced the text titled “Promotion of inclusive and effective international tax cooperation at the United Nations” (document A/C.2/79/L.8/Rev.1), which contained a statement of programme budget implications (document A/C.2/79/L.58). The Committee approved it in a recorded vote of 125 in favour to 9 against (Argentina, Australia, Canada, Israel, Japan, New Zealand, Republic of Korea, United Kingdom, United States), with 46 abstentions.
By the draft, the Assembly would decide to adopt the terms of reference for a United Nations Framework Convention on International Tax Cooperation as contained in annex I to the report on the second session of the Ad Hoc Committee. Further to the text, it would stress that Member States should be fully engaged in the negotiation of the framework convention and endeavour to ensure continuity in their representation.
Before action, Hungary’s delegate, speaking for the European Union in its capacity as observer, asked for clarification, noting the bloc requested votes on operative paragraphs 2 and 5, as the latter makes no reference to the principle that broad consensus-based decision-making is crucial to a successful process.
In response, Nigeria’s delegate, speaking for the Arab Group, said the adoption of the terms of reference is essential, as they reflected consensus reached during the Ad Hoc Committee’s work, balancing the perspectives of all Member States. “Reopening this issue now risks undermining that consensus and delaying the process unnecessarily,” he stated, calling on Member States to support the paragraphs.
Addressing operative paragraph 2 of “L.8/Rev.1”, the Committee decided to retain it in a recorded vote of 119 in favour to 48 against, with 5 abstentions (Türkiye, United Arab Emirates, Iceland, Mexico, Norway).
Next, it turned to operative paragraph 5 of the draft, deciding to retain it in a recorded vote of 121 in favour to 47 against, with 5 abstentions (Mexico, Iceland, United Arab Emirates, United Kingdom, Türkiye).
The representative of the United States said his delegation called for a vote, firstly because the text adopts the terms of reference that 48 Member States did not support. “We’re also concerned that the work would duplicate existing intergovernmental negotiations in other fora,” he added. As the text further does not decide the modalities of how decisions are made, he called on Member States to vote against it.
However, Nigeria’s delegate, speaking for the African Group, said that the resolution represents “the culmination of months of negotiations and reflects a balanced approach to advancing fairness, equity and inclusivity” in global tax cooperation. Voting against it risks undermining the principles of multilateralism and disregarding the unique challenges faced by developing countries, he stressed, calling on delegations to vote in favour of the text.
While voting in favour, Singapore’s delegate still voiced concern, noting that a decision-making modality that garners collective agreement will produce solutions that are more effective in addressing the challenges that developing countries are facing.
The United Kingdom’s delegate, while championing efforts to combat base erosion and profit shifting, increased tax transparency, and customs capacity building partnerships with developing countries, emphasized the need to ensure that a framework convention will not undermine existing tax rules. She recalled that in July, her delegation made six proposals for changes to the zero draft of the terms of reference, none of which were reflected in the final text.
The representative of the Bahamas, whose second-largest industry is financial services, supported the resolution which “marks a historic and transformative step towards bridging critical gaps in the international tax architecture”. He called for the framework convention to reflect the needs and views of the Global South.
Other delegates attached great importance to international tax cooperation and inclusivity, while Norway’s delegate underscored that the negotiation process ahead must be transparent, and abstained. New Zealand’s delegate, speaking also for Australia and Canada, stressed that strong and inclusive dialogue is needed in the draft, expressing regret that the resolution makes no mention of consensus. Meanwhile, Lichtenstein’s representative did not support the draft as the framework convention on taxation lacked consensus based on common decisions.
The representative of Japan said that deliberations in the Intergovernmental Negotiation Committee should aim to foster broad consensus reflecting the various positions of all Member States and relevant stakeholders. It is concerning that the resolution does not explicitly allow non-State jurisdictions to participate in that Committee, he added.
The Committee then took up a draft titled “Ensuring access to affordable, reliable, sustainable and modern energy for all” (document A/C.2/79/L.34/Rev.1), approving it without a vote.
The representative of the United Kingdom, while joining consensus, expressed disappointment that operative paragraph 23 still references the Paris Agreement on climate change as under the United Nations Framework Convention on Climate Change. The United Kingdom also disassociated from the reference to all available technological solutions and approaches in preambular paragraph 24.
The delegate of the United States noted that the energy sector accounts for over two thirds of global emissions, “so achieving access to affordable, reliable, sustainable and modern energy for all must take into account the need for energy transitions to achieve net-zero global emissions by mid-century or before”. His delegation disassociated from operative paragraph 10.
Meanwhile, the Russian Federation’s delegate noted this is the first time an energy resolution at the General Assembly includes a paragraph on nuclear energy, which represents one tenth of the global energy mix. Nuclear power plants do not pollute the environment or emit greenhouse gases, and its inclusion in the resolution is therefore important in global efforts to combat climate change and achieve universal access to energy.
Next, the Committee addressed “Human resources development” (document A/C.2/79/L.23/Rev.1), approving it without a vote.
The Committee then turned to a draft titled “Quadrennial comprehensive policy review of operational activities for development of the United Nations system” (document A/C.2/79/L.60), approving it without a vote.
Before that action, the Committee addressed amendment A/C.2/79/L.61, rejecting it in a recorded vote of 127 against to 3 in favour (Israel, Tonga, United States), with 37 abstentions.
Introducing the amendment, Israel’s delegate emphasized that the current draft could be the most significant resolution approved in 2024. Regrettably, his country could not support operative paragraph 11 due to its politicized language, which should not be applied to the UN development system. He urged delegates to vote in favour.
Speaking after the vote, the representative of Israel disassociated himself from operative paragraph 11 of the draft, noting that its politicization diverges from the core mandate of UN development system.
In explanation of position, the Russian Federation’s delegate expressed hope “that during this last full cycle before 2030 this resolution will not remain yet another mere declaration of intentions”, but rather will become a road map for joint efforts to achieve sustainable development in a balanced manner.
The representative of Australia, also speaking on behalf of Canada and New Zealand, expressed regret that the resolution, in one instance, weakened the commitment to girls’ empowerment. The text has “fallen short” by still not recognizing the critical importance of universal access to sexual reproductive health and rights in line with the 2030 Agenda for Sustainable Development.
Similarly, the delegate of the United States commended the resolution for recognizing that placing all women and girls at the centre of our development efforts is the only way to advance the 2030 Agenda. “Sustainable development is not possible if we leave half the world behind,” she added.
Meanwhile, the observer for the Holy See voiced disappointment over the constant attempt by some delegations to alter the nature of the text by overloading it with new and often divisive language. Expressing concern that “some delegations opposed reaffirming the eradication of poverty as the overarching objective”, he was alarmed that language was watered down.
Next, the Committee took up two decisions on “Draft programme of work of the Second Committee for the eightieth session of the General Assembly” (document A/C.2/79/L.45) and “Revitalization of the work of the Second Committee” (document A/C.2/79/L.57), approving both without a vote.
The representative of the European Union, in its capacity as observer, called for a frank and open discussion on the issue of trust in the negotiations. “The last three years marked records in the number of silence procedures being broken,” with 2024 being quite exceptional in that regard.
In closing remarks, Navid Hanif, Assistant Secretary-General for Economic Development in the Department of Economic and Social Affairs, speaking on behalf of Li Junhua, United Nations Under-Secretary-General for Economic and Social Affairs, said that the resolutions approved provide important guidance on how to collectively turbocharge efforts to implement the 2030 Agenda. “Your deep discussions on the resolutions across the macroeconomic policy and financing cluster have reinforced the need for further efforts to bring countries together for ambitious reforms that deliver affordable, long term and predictable financing at scale,” he added.
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