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France says US pulling back on digital tax deal

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Nyakundi Report

Newsroom 1 min read

This archive report was first published on 2 December 2019.

Published on December 2, 2019, the OECD is overseeing negotiations among 134 countries to forge a system to make firms pay taxes in the countries they operate.

France moved ahead with its own digital tax, which is expected to add 400 million euros ($444 million) to France's coffers this year, despite US President Donald Trump's criticism.

US Trade Representative Robert Lighthizer is set to announce the impacts of the French tax on US companies, and possibly retaliatory measures from Washington.

"Having demanded an international solution from the OECD, it (Washington) now isn't sure it wants one," Le Maire told France Inter radio.

"We can see that the United States is shifting into reverse," he said, adding that Trump "is going to content himself with imposing sanctions against France over its national tax."

The EU's incoming single market commissioner, Thierry Breton, also suggested that US Treasury Secretary Steven Mnuchin could announce Washington's pullout from the OECD talks.

"I understand that we're going to have a response probably today by Mr Mnuchin telling us that finally it doesn't work," Breton told BFM television.

"If it doesn't work, we will consider the issue at the European level," he said.

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