Donald Trump and Emmanuel Macron have agreed to suspend any further escalation in the conflict between Washington and Paris over the French digital tax by the end of the current negotiations within the OECD. This was reported on Monday, January 20, Reuters and AFP, citing a French diplomatic source.
The two presidents, who spoke on Sunday evening by telephone, agreed to let negotiations continue until the end of the year in the framework of the Organization for Economic Cooperation and Development. "In the meantime, we will not indulge in successive tariffs," added this source.
"Excellent discussion with Donald Trump on digital taxation," tweeted the French president. "We will work together on a good agreement to avoid any escalation in prices."
Excellent discussion with @realDonaldTrump on digital taxation. We will work together on a good agreement to avoid any escalation in prices.- Emmanuel Macron (@EmmanuelMacron) January 20, 2020
The White House said Monday evening that the two presidents had agreed on "the importance of completing the negotiations on the digital tax", adding that they had discussed other bilateral issues.
Threat of customs duties
On January 7, the United States and France had given themselves fifteen days to reach an agreement and allow the continuation of work at the OECD on the establishment of international taxation of digital giants, including Gafa as Google, Amazon or Facebook.
A new meeting is scheduled for Wednesday in Davos during the World Economic Forum between the French Minister of Economy Bruno Le Maire, the American Secretary of the Treasury Steven Mnuchin and the Secretary General of the OECD, Angel Gurria.
The idea of a tax on "Gafa" divides the United States and the European countries, in particular France which adopted its own tax last July, attracting the wrath of Washington which threatens to retaliate by customs duties.
"France is continuing its objective of fair taxation of digital companies and of finding a compromise within the framework of the OECD," the French presidency recalled on Monday. Paris said it would drop its tax if an international agreement was reached.
With Reuters and AFP
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