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UPDATE 1-Yellen pledges U.S. Treasury cooperation with UK, Germany on pandemic, climate, taxes

Wed, 27th Jan 2021 18:39

(Adds details from calls with German, UK finance ministers)

By David Lawder

WASHINGTON, Jan 27 (Reuters) - U.S. Treasury Secretary Janet
Yellen vowed U.S. cooperation in calls with British and German
counterparts on Wednesday to end the coronavirus pandemic,
support a robust economic recovery and tackle difficult climate
and international tax issues.

Yellen, on her first full day on the job after being sworn
into office on Tuesday as the first female head of the U.S.
Treasury, spoke with finance ministers Rishi Sunak of Britain
and Olaf Scholz of Germany, Treasury readouts of the calls said.

Yellen stressed the importance of Washington's transatlantic
partnerships, which frayed under former President Donald Trump,
and agreed to work with both ministers "to end the pandemic,
support a strong and sustained global economic recovery, fight
income inequality and forcefully address the threat of climate
change".

The Treasury also said Yellen noted the importance of
collaborating closely on bilateral and global issues.

She discussed the need to find multilateral solutions to
global economic problems including the challenge of "efficiently
and equitably taxing the income of multinational firms". She
pledged active U.S. participation in OECD discussions on
international taxation to reach a timely agreement.

"It was a very friendly exchange, they agreed on good and
close cooperation," a spokesman for Scholz said in Berlin,
adding that the too hoped to meet soon in person when the
COVID-19 pandemic allows.

A UK finance ministry statement said Yellen and Sunak agreed
"that our number one priority continues to be supporting
businesses, individuals and families through this crisis"

Britain, which holds the presidency of G7 industrial
democracies this year, added that Sunak and Yellen agreed to
work closely on a global solution to "tax challenges created by
digitalization of the economy".

The Trump administration published results of "Section 301"
investigations into digital taxes that found they discriminated
against big U.S. tech firms, but stopped short of imposing
tariffs, leaving that for the Biden administration.

The Biden administration has not indicated whether it will
act on the reports but is seeking to engage with allies on a
range of economic and trade issues.
(Additional reporting by David Milliken in London, Michael
Nienaber in Berlin and Andrea Shalal in Washington; Editing by
Mark Heinrich)

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