The G20 is expected to give its political endorsement to plans for new rules on where and how much companies are taxed which were backed last week by 130 countries
The proposed reform is comprised of two pillars to prevent companies from establishing bases in countries with low taxes to maximise profits earned elsewhere
"A detailed implementation plan together with remaining issues will be finalised by October 2021," read a statement signed by 130 out of 139 countries and jurisdictions involved in the negotiations.
It added that new rules on where the biggest multinationals are taxed would see taxing rights on more than $100 billion of profits shifted to countries where the profits are earned.
The deal now goes to the Organisation of Economic Co-operation and Development (OECD), which is overseeing two days of talks starting Wednesday to find a consensus among 139 countries.
G7 finance ministers agreed backed earlier this month a global minimum tax rate of at least 15% and thresholds for divvying up governments' rights to tax the profits on cross-border commerce.
Buoyed by a multi-trillion-dollar stimulus plan, the US economy was seen growing 6.9% this year, the OECD said, up from a previous forecast of 6.5%. It is expected to expand 3.6% in 2022, down from a 4.0% forecast in March.
It proposed the global minimum tax as a way to minimize the impact of a higher US tax rate on the competitiveness of American companies and deter them from shifting operations or profits to lower-tax jurisdictions.
The US representative and the Canadian minister also discussed the protracted litigation over Canadian lumber. Washington believes that this wood is sold below the market price to promote exports.
