US, Australia to sign deal on tax cooperation

U.S. Treasury Secretary Jack Lew said Friday he's pleased that Australia has put "growth strategies " at the core of G20 agenda this year and the two nations will soon sign an agreement on tax cooperation. In a joint briefing with Australian Treasurer Joe Hockey, Lew said global growth remains uneven and well below potential despite signs of improvement. He emphasized the significance of the growth strategies, saying the strategies must address both deficiencies in near-term demand and longer-term economic challenges. According to Lew, the U.S. economy is continuing to show broad underlying strength, providing critical support for the global outlook. "Further progress globally is needed to achieve faster and more balanced growth around the world," he added. Work on tax cooperation was one of the most important initiatives at the G20, Lew said, "I'm proud today to announce the U.S. and Australia have completed Foreign Account Tax Compliance Act agreement in substance and we plan to sign it very soon." Meanwhile, Hockey said a strong U.S. economy was good for both Australia and the world. "We want the United States to have a strong and vibrant economy and we are encouraged by what has been achieved," he said. Hockey also emphasized the need for outcomes at the weekend G20 financial ministers and central bank governors meeting on issues like tax, banking regulation and infrastructure, expecting robust discussions during the meeting.