Debates Parlamentares - Diário 019, p. 38 (2024-02-28)

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Resolution 2526 (2024)1Provisional version

Globalisation in times of crisis and war: the role of the OECD since the Russian Federation's aggression against Ukraine

Parliamentary Assembly

1. The Parliamentary Assembly of the Council of Europe, enlarged to include the delegations of the national parliaments of the Organisation for Economic Co-operation and Development (OECD) member States that are not members of the Council of Europe and a delegation from the European Parliament, is a unique platform for parliamentary scrutiny of OECD activities. Every two years, it holds the enlarged Assembly debates focusing on specific themes, defined in collaboration with the OECD.

2. The last enlarged Assembly debate held in April 2021 focused on “Fighting fiscal injustice: the work of the OECD on taxation of digital economy”. Resolution 2370 (2021) underlined that fair and redistributive taxation, was both an essential tool for governments to raise the funds necessary for the proper functioning of public services and a fundamental anchor for democracy, and commented on the role of the OECD in this field and its work on the Inclusive Framework on Base Erosion and Profit Shifting (BEPS) which were instrumental in reaching global consensus on how to make the international tax system fairer and more stable. The enlarged Assembly welcomes the steps taken towards implementing the global minimum tax by 2025 and encourages the OECD to persevere in completing the set of measures foreseen under the two-pillar solution together with its efforts to build tax capacity in developing countries.

3. This time, the enlarged Assembly focuses on the ways in which the new global context resulting, inter alia, from shocks provoked by the Covid-19 pandemic and the Russian Federation’s war of aggression against Ukraine, has affected the already existing negative trends in globalisation, and the role that the OECD can play to mitigate them. Worries about trade dependencies and supply disruptions are not new, but current public debates put them in the spotlight, particularly as global economic and geopolitical outlooks are worsening. They have recently resulted in another wave of calls for “slowbalisation”, “deglobalisation”, “friendshoring”, “nearshoring”, creation of “trading blocks” or “relocalisation”. Tensions between the USA and China on broader geopolitical issues raised also the spectrum of “decoupling” of the two world’s biggest economies. Even the perspective of eventual US-EU trade wars was discussed, in the aftermath of the US Inflation Reduction Act (IRA), which came into effect on 1 January 2023.

4. The enlarged Assembly notes with interest the OECD’s statement on the occasion of the 2023 OECD Ministerial Council Meeting, under the theme: “Securing a Resilient Future: Shared Values and Global Partnerships”. On this occasion, OECD member States reaffirmed the following: “our like-minded community remains committed to the shared values of individual liberty, democracy, the rule of law, human rights, gender equality, environmental sustainability and tackling inequalities, as set out in our 2021 Vision Statement; as well as diversity and inclusion. … We reaffirm the importance of multilateralism and standing united in addressing global challenges, and in reaching out beyond our current membership to enhance and develop global partnerships. … We value the OECD’s role in promoting free and fair trade, investment, and supply chain resilience, as set out in the new OECD trade strategy; and facilitating international co-operation to counter attempts to undermine open, market-based economic systems.”

1. Assembly debate on 24 January 2024 (4th sitting) (see Doc. 15868, report of the Committee on Political Affairs and Democracy, rapporteur: Mr George Katrougalos; and Doc. 15887, opinion of the Committee on Social Affairs, Health and Sustainable Development, rapporteur: Ms Liliana Tanguy). Text adopted by the Assembly on 24 January 2024 (4th sitting).

II SÉRIE-D — NÚMERO 19 ___________________________________________________________________________________________________________

Resolution 2526 (2024)1Provisional versionGlobalisation in times of crisis and war: the role of the OECD since the Russian Federation's aggression against UkraineParliamentary Assembly1. The Parliamentary Assembly of the Council of Europe, enlarged to include the delegations of the national parliaments of the Organisation for Economic Co-operation and Development (OECD) member States that are not members of the Council of Europe and a delegation from the European Parliament, is a unique platform for parliamentary scrutiny of OECD activities. Every two years, it holds the enlarged Assembly debates focusing on specific themes, defined in collaboration with the OECD.2. The last enlarged Assembly debate held in April 2021 focused on “Fighting fiscal injustice: the work of the OECD on taxation of digital economy”. Resolution 2370 (2021) underlined that fair and redistributive taxation, was both an essential tool for governments to raise the funds necessary for the proper functioning of public services and a fundamental anchor for democracy, and commented on the role of the OECD in this field and its work on the Inclusive Framework on Base Erosion and Profit Shifting (BEPS) which were instrumental in reaching global consensus on how to make the international tax system fairer and more stable. The enlarged Assembly welcomes the steps taken towards implementing the global minimum tax by 2025 and encourages the OECD to persevere in completing the set of measures foreseen under the two-pillar solution together with its efforts to build tax capacity in developing countries.3. This time, the enlarged Assembly focuses on the ways in which the new global context resulting, inter alia, from shocks provoked by the Covid-19 pandemic and the Russian Federation’s war of aggression against Ukraine, has affected the already existing negative trends in globalisation, and the role that the OECD can play to mitigate them. Worries about trade dependencies and supply disruptions are not new, but current public debates put them in the spotlight, particularly as global economic and geopolitical outlooks are worsening. They have recently resulted in another wave of calls for “slowbalisation”, “deglobalisation”, “friendshoring”, “nearshoring”, creation of “trading blocks” or “relocalisation”. Tensions between the USA and China on broader geopolitical issues raised also the spectrum of “decoupling” of the two world’s biggest economies. Even the perspective of eventual US-EU trade wars was discussed, in the aftermath of the US Inflation Reduction Act (IRA), which came into effect on 1 January 2023.4. The enlarged Assembly notes with interest the OECD’s statement on the occasion of the 2023 OECD Ministerial Council Meeting, under the theme: “Securing a Resilient Future: Shared Values and Global Partnerships”. On this occasion, OECD member States reaffirmed the following: “our like-minded community remains committed to the shared values of individual liberty, democracy, the rule of law, human rights, gender equality, environmental sustainability and tackling inequalities, as set out in our 2021 Vision Statement; as well as diversity and inclusion. … We reaffirm the importance of multilateralism and standing united in addressing global challenges, and in reaching out beyond our current membership to enhance and develop global partnerships. … We value the OECD’s role in promoting free and fair trade, investment, and supply chain resilience, as set out in the new OECD trade strategy; and facilitating international co-operation to counter attempts to undermine open, market-based economic systems.”1. Assembly debate on 24 January 2024 (4th sitting) (see Doc. 15868, report of the Committee on Political Affairs and Democracy, rapporteur: Mr George Katrougalos; and Doc. 15887, opinion of the Committee on Social Affairs, Health and Sustainable Development, rapporteur: Ms Liliana Tanguy). Text adopted by the Assembly on 24 January 2024 (4th sitting).II SÉRIE-D — NÚMERO 19 ___________________________________________________________________________________________________________38

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