Donald Trump’s return to the White House has come with drastic changes threatening international co-operation, including withdrawing support for the Organisation for Economic Co-operation & Development (OECD) 2021 global tax agreement, walking out of the UN Framework Convention on International Tax Co-operation earlier this month, slapping tariffs on allies, and again exiting the Paris Climate Agreement. SA was on the receiving end of these actions with USAID withdrawal and the threat of sanctions due to its Expropriation Act.
Despite a long history of the US and its allies using their power to influence global agreements and determine, or block, international co-operation, SA has always been a strong proponent of international co-operation and supported the Global South’s position on a progressive global tax order. However, its allies are raising concerns because it is supporting both the UN Convention and the OECD’s two-pillar framework in G20 processes. We argue that this position will compromise African unity on international tax co-operation, so we call on SA to reaffirm its commitment to the UN Convention process.
