IMF’s Georgieva: A global tax deal is needed to avoid risks of eventual trade war

All nations should come together on global rules for corporate-income taxation, in order to avoid a trade war, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said in remarks prepared for a virtual book launch on Tuesday, per Bloomberg.

Key quotes

“The crises of COVID-19 and climate change present the world with an opportunity to rethink and fix the international tax system.”

“We are particularly optimistic for a global agreement on corporate income taxation in 2021.”

“And it is urgently needed to avoid, down the road, the risk of spiraling into a chaotic tax or trade war where everyone loses.”

Market implications

US Treasury Secretary Janet Yellen’s view on a likely rate hike stirred markets, as investors ignored the above comments. The S&P 500 futures are up by 0.20%, as of writing.