On Oct. 30-31, the G20 forum will take place in Rome, Italy, under the direction of Italian Prime Minister Mario Draghi.
This year, the forum will discuss important topics ranging from the global shortage of energy to the adoption of a global corporate minimum tax.
A reduction of carbon emissions will also be high on the agenda.
The 15% global minimum tax for corporations was supported by the G7 last June and approved by the OECD (Organisation for Economic Co-operation and Development) after exempting certain sectors, such as the financial and shipping sectors, and limiting its application to companies earning over $866 million per year.
G20 countries will likely support its adoption, because most of their corporate income tax rates are already above 15%.
However, the G20 summit will mark the notable absences of Chinese leader Xi Jinping and Russian President Vladimir Putin. They will will not attend in person, citing travel restrictions due to the coronavirus pandemic.
Their absence could jeopardize the adoption of new policies at the meeting.
While the G20 is considered the best forum to discuss climate policies, because its members contribute to 80% of global emissions, three of its members, China, Russia and India, have already refused to commit to the net-zero emissions goal by 2050 proposed by the Biden administration.
The United States and China have been at odds over several issues such as China's claims in the South China Sea and the political status of Taiwan. After progress was made with North Korea during the Trump administration, last week Kim Jong-un tested a submarine launcher with ballistic missile for the first time since 2019, concurrently refusing U.S. calls to resume peace talk with South Korea.
The G20 could have been a great opportunity for President Joe Biden to meet Xi Jinping in person for the first time since his election, and to address major issues such as the denuclearization of North Korea. The Chinese leader's absence at the G20 will likely stall the negotiations between the two countries.
Turkey, a NATO member, has just expelled the U.S. ambassador after the U.S. called for release of a political activist. As a result, it's unlikely that the Turkish President Recep Tayyip Erdogan will cooperate with the Biden administration in resolving geopolitical issues in the Mediterranean and the Mideast.
Since Biden's inauguration, the U.S. administration has directly accused Saudi Crown Prince Mohammed bin Salman for the murder of journalist Jamal Khashoggi and imposed a freeze on arms sales to the Kingdom. Saudi Arabia is a strategic partner of the U.S. in the Mideast — and the most influential member of OPEC.
High oil prices are beneficial to Saudi's budget and Biden policies might preclude the kingdom's assistance in mitigating the energy shortage, which is contributing to the high inflation in Europe and the United States.
President Biden will also find a hostile environment from some U.S. allies, such as France.
In fact, French President Emmanuel Macron recently recalled his ambassador from Washington, D.C., doing so for the first time in history over a deal to supply submarines to Australia. It will take time to rebuild trust between the leaders of the two countries.
Since the Biden sdministration has a strained relationship with France, Saudi Arabia and Turkey, it will face an uphill battle to adopt new policies in the G20 meeting in Rome.
Francesco Stipo is an author and expert in international affairs. He is the President of the Houston Energy Club, a member of the National Press Club in Washington D.C., a Fellow of the World Academy of Art and Science, and recently joined the Bretton Woods Committee. Born in Italy in 1973, Dr. Stipo is a naturalized United States citizen. He holds a Ph.D. in International Law and a Master Degree in Comparative Law from the University of Miami. Read Francesco Stipo's Reports — More Here.
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