Published: Tue, January 21, 2020
Markets | By Otis Pena

Macron, Trump may have tariff truce in 2020 digital tax fight

Macron, Trump may have tariff truce in 2020 digital tax fight

"We will work together on a good agreement to avoid tariff escalation", he said.

France and the United States will negotiate with their European partners by the end of 2020 to agree a global framework that will ensure that technology companies pay a reasonable amount of tax, the French diplomat said.

"Excellent!" replied Trump on Twitter.

Macron tweeted he had a "great discussion" with Trump.

The presidents of France and the USA agreed Monday to work together to resolve a spat between their two countries over Paris' digital services tax.

The controversy began a year ago, when Paris approved an interest rate of up to 3% on technology companies' revenue in France, as worldwide efforts ended up finding a new model for taxing revenue from online sales and advertising.

Trump had threatened the new levies in retaliation for a tax hit on French technology technology companies like Facebook and Google's earnings.

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Prime Minister Imran Khan's Advisor on Commerce Abdul Razak Dawood, Zulfi Bukhari and other officials will be accompanying him. On the first day of the forum, Prime Minister Borisov will participate in a session on Dialogue on Western Balkans Diplomacy.

Technology companies often pay minimal taxes in countries where they are not present.

"Closing the Louvre to prevent tourists from visiting is very important because it's the most visited museum in the world", Christophe Benoit, a fifty-two-year-old employee of the French Ministry of Culture, told the New York Times.

The US sanctions "would be a awful blow for French viticulture", said Le Maire, adding he had spent most of the weekend in negotiations and was due to meet US Treasury Secretary Steven Mnuchin again on Monday evening.

They are expected to continue talks seeking a negotiating agreement with the Organization for Economic Co-operation and Development (OECD).

France has said it would abandon the digital tax if an global agreement is reached.

"France is pursuing its objective of fair taxation on digital companies and finding a compromise within the framework of the OECD", the French presidency said yesterday.

After blocking the OECD talks for several years, Washington repeated them only last year to put forward proposals in December, which France rejected.

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