The Trump administration opposes draft reforms of the world’s financial system intended to help developing countries, including around taxation, credit ratings and fossil fuel subsidies. It also wants mentions of “climate,“ “gender equality” and “sustainability” stripped out.
The once-a-decade, 4th International Conference on Financing for Development (FFD4) in Seville, Spain, in June aims to influence the strategic direction of the world's development finance institutions. Countries agreed at FFD3, for example, to broaden tax cooperation efforts so that developing countries could help set the rules and as of last May more than 140 countries were involved.
Compiled by the permanent representatives to the U.N. of Mexico, Nepal, Norway, and Zambia, with help from the U.N. secretariat, the April 11 negotiating draft is annotated with the positions of the 193 nations involved in the discussions.
“The international financial institutions have independent mandates and authorities, and we do not support attempts in the U.N. system to dictate their priorities or activities,“ the U.S. statement from acting U.N. Economic and Social Council representative Jonathan Shrier said.
With ongoing changes at the World Bank and International Monetary Fund in the fight against climate change already facing pushback from U.S. Treasury Secretary Scott Bessent, the document showed it was seeking to water down the U.N.'s reform prescriptions.
Such changes in language signal the degree of shared commitment that can then be used as support for action or inaction in future talks.
The Treasury Department and State Department both declined to comment. The White House did not respond to a request for comment.
CLIMATE CHANGE
President Donald Trump has quit the UN Paris climate agreement, slashed U.S. foreign development aid by more than 80% as part of a government overhaul led by billionaire Elon Musk and embarked on a trade war that is hurting many poorer nations.
If included, the levies could be taken up in U.N. negotiations on taxes this year and would bolster a task force led by France, Kenya and Barbados that aims to develop such taxes among smaller groups of countries.
The U.S. is also seeking to delete a paragraph calling for companies to pay tax to the countries where economic activity occurs; a paragraph on helping developing countries bolster tax transparency; and another on phasing out inefficient fossil fuel subsidies, the document shows.
That includes a push for raters to take a more forgiving approach to poorer nations that voluntarily restructure their debt to invest in green projects, it showed.
While the U.S. has considerable influence as the biggest shareholder in both the World Bank, which provides loans and grants to developing countries, and the IMF, and is currently reviewing its role in both, the draft deal is likely to change further as countries continue negotiations in May, before reaching consensus on a final document in mid-June.
The U.S. position puts pressure on other countries to accept a weaker deal, since the talks aim to adopt a deal by consensus.
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