The organizational session of the Intergovernmental Negotiating Committee (INC) on international tax cooperation was the first meeting in a three-year process to negotiate a framework convention and two protocols on priority issues. These negotiations feed into the discussion on reforming the architecture of the international financial system. Delegates agreed the rules by which decisions would be taken, both by the INC and under the future convention and its protocols.

According to the Earth Negotiations Bulletin (ENB) summary report of the meeting, many developing countries view this new, UN-led convention as “a critical step in the fight for tax justice,” by serving as a more equitable decision-making forum that also includes countries “that have traditionally been excluded from decision making.” Issues the convention and its protocols are expected to tackle include tax base erosion, profit shifting, and tax evasion, which are major obstacles to developing countries in particular “mobilizing domestic revenue that is crucial for their sustainable development.” The process will thus contribute to SDG 16 (peace, justice and strong institutions).

During the session, “the INC was tasked with electing the Chair and Bureau, establishing a work programme, recommending dates for upcoming meetings, and deciding on a topic for the second early protocol to the framework convention.” ENB reports that delegates “struggled to reach agreement” on the rules by which decisions would be taken.

“Many,” ENB writes, “including the African Group, strongly preferred decision-making by simple majority vote.” Others, including the EU, stressed the importance of consensus. Ultimately, the INC decided that “when consensus is not deemed to be possible, a two-thirds majority would be the threshold for adopting decisions.” The ENB analysis of the meeting notes that some saw this decision as a victory for inclusivity, while others suggested that decision making by vote could jeopardize broad adoption and implementation of future agreements.

Delegates also selected the topic of the second protocol – “prevention and resolution of tax disputes,” and agreed on rules for multi-stakeholder participation.

The INC did not discuss dates for subsequent meetings, the process for intersessional work, and possible workstreams, among other practicalities that will shape its work. This, ENB writes, left many disappointed.

The INC Chair said “he is working with the Secretariat to develop workstreams, task forces, and a timeline for the INC’s work,” per ENB. The Committee will consider these plans at its next session.

The organizational session of the INC was held at UN Headquarters in New York, US, from 3-6 February 2025, with over 250 government delegates and observers in attendance. At the beginning of the meeting, the US stated his delegation does not plan to participate further in the INC. [ENB Coverage of Organizational Session for the Intergovernmental Negotiations for the UN Framework Convention on International Tax Cooperation]