Trump, Emmanuel Macron Agree To Give Digital Tax Row Talks

Trump and Macron agree on the importance of completing digital tax negotiations

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The presidents of the United States and France, Donald Trump and Emmanuel Macron, on the basis of a telephone conversation on Monday agreed on the importance of completing negotiations on the so-called digital tax.  This was reported in a statement released on Monday by the White House press service.

“The leaders of the two countries agreed that it is important to complete successful digital tax negotiations,” the document says.

Earlier, the French leader wrote on his Twitter page that he had discussed with Trump the plans of the US authorities to impose duties on goods from a European country in response to the introduction of a digital tax by Paris.  According to him, both sides are working “on a good agreement to avoid escalation in the field of duties.”

Trump agreed not to impose trade duties until negotiations on the digital tax issue within the Organization for Economic Co-operation and Development (OECD) are over.  In turn, AFP, citing a source in French diplomatic circles, said that the leaders of the two countries agreed to extend negotiations on this topic until the end of the year.  The interlocutor of the agency added that the immediate introduction of sanctions against French goods was avoided.

On July 11, the French Senate (upper house of parliament) passed a bill on taxation of the largest companies providing digital services.  This tax applies to the profits of Internet giants received after January 1, 2019, and will be 3% of the total turnover in France.  It covers all companies whose turnover exceeds € 750 million in the world and € 25 million in France, as well as companies whose field of activity covers online advertising, online trading or the work of information aggregators.

At the beginning of December last year, in the office of the US representative at the trade talks, they said that Washington, in connection with the imposition of a digital tax by Paris on American companies, could impose duties on French goods worth about $ 2.4 billion. These products included dairy products, including cheese  as well as sparkling wines, cosmetics, bags and porcelain.

Read more related articles about North America: https://www.diplomacy24.com/category/north-america/

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