OECD says new deal will help fight tax avoidance

British Finance Minister Philip Hammond attended the G7 meeting in Bari, Italy yesterdau and emphasised the need for the United Kingdom to have a strong voice in worldwide councils and in the Brexit negotiations.

"We don't want to be protectionist", Mnuchin said.

BARI, Italy May 13 Japanese Finance Minister Taro Aso said on Saturday that he was gradually seeing the course of US economic policies after a two-day gathering of Group of Seven financial leaders in the southern Italy.

U.S. Treasury Secretary Steven Mnuchin said on Saturday that United States reserves the right to be protectionist on trade, but noted that his global counterparts are growing more comfortable with the Trump administration's economic agenda.

Aso did not clarify whether he was concerned about USA policies.

A senior Japanese finance ministry official said on Saturday uncertainties remained over how quickly the US Federal Reserve would raise interest rates, but the biggest question mark was over possible US tax cuts that could fire up an already recovering US economy.

The ministers and central bank governors also pledged to use all policy tools - monetary, fiscal and structural - individually and collectively to promote sustainable and inclusive growth.

President Donald Trump's administration "is committed to protecting Americans and the global financial system from the constantly evolving threat of cyberattack. and Treasury will play a leading role in this critical national security effort".

But unlike a G7 leaders' communiqué of 2016, the Bari meeting did not endorse free trade and reject protectionism, reflecting pressure from the United States where President Donald Trump has signaled his skepticism about free trade deals.

The U.S. Treasury Secretary's first G-7 outing came in the wake of an announcement a deal to boost the country's exports of gas and beef to China.

Italian Economy Minister Pier Carlo Padoan, the G7 host, said Trump's plan to slash taxes on businesses was "ambitious" and he was keen to hear more about it from Mnuchin.

"We must not backpedal on free trade as it has contributed to economic prosperity", Aso said. "We are working to strengthen the contribution of trade to our economies", the statement read, stopping short of making a call for free trade or against protectionism. But it has been given added urgency by Britain's vote to leave the European Union and Trump's election triumph, both shocks attributed to the negative impact of recent economic trends on key demographics.

"The global economy is facing a prolonged period of modest growth and high or rising inequalities in many countries, notably within countries with middle and lower income classes being particularly affected", the statement said.

The head of an global organization representing numerous globe's advanced economies says that a new, multinational tax treaty will be of "massive consequence" in preventing big companies from avoiding taxes.

  • Zachary Reyes