Istanbul (Not Constantinople)

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Last month, negotiations started on the UN Convention on International Tax Cooperation (UNCITC). If it looked chaotic with widely different views, that it’s because it was. 193 countries and a similar amount of civil society groups expressed their views but mostly talked cross purposes.

The fundamental problems of UNCITC haven’t changed (https://lnkd.in/eTfctR_F). In November 2023, 125 countries supported UNCITC negotiations, 48 opposed and 6 abstained. Most of the larger, developed countries were against. Negotiations have now begun, but they can always choose to not sign / ratify UNCITC making most of it moot.

You’d think UNCITC supporters would try to get them back on board, but no, Tax Justice Network (TJN) put out a piece accusing most of them of bad faith (https://lnkd.in/eF4V3g6F). TJN argues that these countries tried revisiting already points approved by the majority that did not include them (eg mandate, scope, definitions). But the 48 disagreed then and they disagree now. Isn’t kind of honest to admit that? It seems fair they try to shape UNCITC into a treaty they could actually sign. How could they else could they object in good faith? Walk out?

All this happens in public open sessions, meaning countries are diplomatic and civil society organisation revelled the opportunity to be blunt. Attempts to change UNCITC processes or limit the participation by civil society organisations were also branded as “bad faith”. Brazil mistakenly equated the G20 billionaire tax with the UN’s wealth tax. The expression “140 is 193” got quoted, which intends to convey that 140 countries supporting OECD’s Two Pillars do not represent everyone. That is technically true, but if anyone thinks they’ll achieve unanimity for UNCITC, they are sorely mistaken. After all, OECD’s score out 140/144 still easily beats UNCITC’s score of 125/193.

TJN got particularly testy over “Turkey’s objection to the accreditation of three civil society organisations”. Is the use of Türkiye’s old name an attempt to throw subtle shade? I’ll pre-empt more embarrassment and flag that the largest city in Türkiye is Istanbul (Not Constantinople) (https://lnkd.in/ep7QharW). The song here is weirdly fitting, as it takes a turn to the surreal (“if you’ve a date in Constantinople, she’ll be waiting in Istanbul”).

It’s difficult to cut through the procedural twist and turns, pet projects and doublespeak, as I wondered if a Frankfurt Parliament analogy would be appropriate (https://lnkd.in/eu6Akwaf). That Parliament discussed formation of the German state for over a year in 1848-1849 before losing momentum and offering the crown to the Prussian king in desperation, only to see the offer rejected and the Parliament disbanded. UNCITC’s fate may not quite be so bleak. But we are in for a wild ride.

Obvious disclaimers: this is not advice. These views are my own and do not necessarily represent my employer.

Istanbul (Not Constantinople) – song and lyrics by They Might Be Giants | Spotify