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CAIRNS - Thank you so much for being here. I first want to thank our gracious host Treasurer Hockey for welcoming us in Australia today. I look forward to productive meetings of the G-20 this week, and to discussing a range of important issues.
Since we last met in Australia, the U.S. economy has strengthened. Real GDP rebounded in the second quarter, growing by a robust 4.2 percent annual rate. The unemployment rate is at a six-year low, and over the past 54 months, our private sector has created 10 million new jobs.
The United States continues to be a source of strength in the global economy. But overall, the global economy continues to underperform. This is particularly true in the Euro Area and Japan, while a number of emerging market economies are also slowing.
More work is needed to achieve faster and more balanced growth, to boost demand especially in surplus countries, and to promote employment.
Part of this growth agenda is a focus on investment and infrastructure. We see investment, both public and private, as one key to boosting growth.
We welcome the Australians’ focus on growth, and we look forward to discussing this issue over the next few days.
We also welcome Australia’s leadership in promoting financial stability through the international financial reform agenda that it has set for the G-20.
The United States has played an important role in this effort, but there's still work to do to raise global standards and promote a safer, sounder financial system.
I welcome the progress made by the Financial Stability Board over the past few days and the emerging consensus on a total loss absorbing capacity proposal, which now positions us to deliver on the Brisbane summit commitment. This important standard will help facilitate the orderly resolution of systemically important banks, and will protect taxpayers from bearing the burden of any global bank’s failure.
There is also important work being done at the G-20 to level the playing field by helping combat tax evasion and tax avoidance by multinational corporations. In the United States, we need business tax reform with anti-inversion provisions to close loopholes and make our tax system more competitive.
While that will take time, I have been urging Congress to enact legislation to address the problem of inversions. And as I have said before, we at Treasury are preparing to take administrative action, but Congress will still need to act.
However, tax avoidance is a global issue. The G-20 through its “BEPS” project is also aiming to end the race to the bottom.
Lastly, as we face global challenges ranging from Russia’s illegal actions that undermine the sovereignty of Ukraine, to working to aggressively counter the threat of ISIL, I’d like to thank Treasurer Hockey for the ongoing partnership our two countries share, and I look forward to working with Treasurer Hockey on the important goals that we need to accomplish at this gathering and beyond. Thank you again for your gracious hospitality.
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