Thaindian News

By Gurmukh Singh
Toronto, May 20 (IANS) Before G8 and G20 summits here next month can discuss a proposed global bank tax, Canada, whose banks stood out during the economic meltdown, has mounted an international effort to scuttle the idea. To get the US, India, China and other economies on their side and scuttle the idea, three Canadian ministers have reached Washington, Mumbai and Shanghai.

Canadian ministers are also in other major world cities to round up support for their opposition to the punitive levy which has been mooted by Britain.

Proposed by outgoing prime minister Gordon Brown and supported by many European nations because of the economic woes, the global bank tax is aimed at meeting costs of any future financial packages. Canada, whose banks came in for praise for their performance during the meltdown, says the bank tax amounts to punishing its financial institutions for their excellent work.

There are also worries that the move may force financial institutions to move to low-tax places.

While Treasury Board president Stockwell Day is already in Shanghai, finance minister Jim Flaherty flew to Mumbai and trade minister Peter Van Loan to Washington.

Though India and China are reportedly not in favour of the proposed tax, Canada wants to take to the two emerging economic powers so that Ottawa is not isolated on the issue.

The tax proposal failed to find favour at the Washington meeting of G20 finance ministers in April.

If the tax creates a bailout fund, you encourage risky behaviour, ” said Canadian industry minister Tony Clement Tuesday. The G8 summit will be held at the Canadian resort of Huntsville June 25-26 and the G20 summit in Toronto June 26-27.

Apart from attending the G20 summit, Prime Minister Manmohan Singh is also likely to hold bilateral talks with his Canadian counterpart Stephen Harper.