Deputy Prime Minister concludes successful G20 Finance Ministers and Central Bank Governors Meeting

From: Department of Finance Canada

Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, concluded her participation at the two-day G20 Finance Ministers and Central Bank Governors’ Meeting in Venice, Italy.

The Deputy Prime Minister participated in the G20 High Level Tax Symposium on tax policy and climate change. The Deputy Prime Minister highlighted Canada’s leadership in pricing carbon pollution, Canada’s investments to build a prosperous low-carbon economy with good jobs, and Canada’s ongoing collaboration with international partners to ensure that fair and open trade measures to mitigate climate change are coordinated in an effective and transparent manner.

The Deputy Prime Minister commended the recent agreement reached by 132 countries and jurisdictions, including Canada, representing more than 90 per cent of global GDP, to establish a new framework for international tax reform. This two-pillar plan will benefit Canadian workers and jobs by helping ensure that multinational enterprises pay their fair share of taxes irrespective of where they operate or where their headquarters are located.

The Deputy Prime Minister also held bilateral meetings to advance Canada’s priorities with several of her counterparts, including: the European Commissioner for Economy, Paolo Gentiloni; the Deputy Prime Minister and Minister of Finance for Japan, Taro Aso; Secretary of Finance and Public Credit of Mexico, Arturo Herrera; the Second Deputy Prime Minister and Minister for Economic Affairs and Digital Transformation for Spain, Nadia Calviño; and the Vice Chancellor and Federal Minister of Finance for Germany, Olaf Scholz.

Quotes

“This week’s G20 was a valuable opportunity for Canada to coordinate with other major economies as we emerge from the COVID recession. We are all focused on investing in jobs and growth and supporting people through a robust recovery. We have also made good progress towards fair international taxation reforms, which will protect jobs and businesses in Canada. In the days and weeks to come we will continue to work with our international partners to ensure our collective prosperity and build a greener and more equitable global economy.”

– The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance

Quick facts

  • The G20 represents 85 per cent of the global economy. The G20 Finance Ministers and Central Bank Governors regularly meet in advance of the Leaders’ summit, which will be held in October in Rome.

  • Canada is one of 132 countries that have agreed to a new two-pillar plan on international tax reform. This agreement is the next step in the global effort to end the race to the bottom in corporate taxation and to ensure that multinational corporations pay their fair share of taxes wherever they do business and regardless of where their headquarters are located.

    • Pillar One would re-allocate some taxing rights with respect to the largest and most profitable multinational corporations, including digital corporations, to the countries where their users and customers are located; and
    • Pillar Two would introduce a global minimum tax on larger multinational corporations of at least 15 per cent determined on a country-by-country basis.
  • The federal government’s recent budget, A Recovery Plan for Jobs, Growth, and Resilience, will create almost 500,000 jobs and training opportunities, including 215,000 for young people, support small businesses, make investments in the Canadian economy’s green transformation, and work to build a Canada-wide early learning and child care system so that parents, especially mothers, can fully participate in the workforce.

  • Since 2015, Canada has invested roughly $90 billion toward climate action and clean growth, including for Canada’s strengthened climate plan. Most recently, the federal government has committed an additional $17.6 billion towards a green recovery that will build a clean economy, fight and protect against climate change, and create good middle class jobs.

  • At the G7 Leaders Summit in June, the Prime Minister announced the doubling of Canada’s international climate finance, from $2.65 billion in 2015 to $5.3 billion over five years, including increased support for adaptation, as well as nature and nature-based solutions.

  • Canada recently announced it is increasing its 2030 target of reducing greenhouse gas emissions to between 40 and 45 per cent relative to 2005 levels, and committed to reach net zero emissions by 2050.

  • The Deputy Prime Minister and the Canadian delegation travelling to Italy are following all public health protocols and procedures during their visit and upon their return to Canada.

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