{"id":140718,"date":"2020-01-07T23:00:06","date_gmt":"2020-01-07T23:00:06","guid":{"rendered":"https:\/\/www.bnreport.com\/eu-trade-boss-backs-france-in-transatlantic-spat-over-digital-tax\/"},"modified":"2020-01-07T23:00:06","modified_gmt":"2020-01-07T23:00:06","slug":"eu-trade-boss-backs-france-in-transatlantic-spat-over-digital-tax","status":"publish","type":"post","link":"https:\/\/www.bnreport.com\/en\/eu-trade-boss-backs-france-in-transatlantic-spat-over-digital-tax\/","title":{"rendered":"EU trade boss backs France in transatlantic spat over digital tax"},"content":{"rendered":"<p>The United States thought it was entering a trade dust-up with France. It may end up in one with the whole European Union.<\/p>\n<p>Speaking after a meeting with Frances finance minister, European Commissioner for Trade Phil Hogan said the blocs executive arm would back Paris in its dispute with Washington over a digital services tax that targets U.S. multinational companies.<\/p>\n<p>\u201cThe European Commission will stand together with France and all of the member states who wish to have the sovereign right to impose digital taxation on companies in a fair way,\u201d Hogan said during the joint news conference with Finance Minister Bruno Le Maire. \u201cWe will look at all possibilities if any tariffs and measures are imposed by the United States.\u201d<\/p>\n<p>What remains to be seen is what sort of measures the EU would be prepared to take if the United States does impose fresh tariffs.<\/p>\n<p>Several EU countries oppose the idea of a digital tax, which France was the first to apply, raising questions about how much support France may garner at the EU level for concrete counter-measures.<\/p>\n<blockquote><p>\nYet taking the World Trade Organization route would be unlikely to bring speedy resolution.\n<\/p><\/blockquote>\n<p>Meanwhile Washington, though locked in a potentially explosive dispute with Iran, is keeping up the pressure on Paris.<\/p>\n<p>The U.S. has threatened to slap a 100 percent tariff on French goods following a <a href=\"https:\/\/www.politico.eu\/article\/trumps-latest-trade-war-french-champagne-vs-google-taxes\/\" rel=\"noreferrer noopener\" target=\"_blank\">U.S. government investigation<\/a> which found the French tax discriminates against American technology companies.<\/p>\n<p>The threat comes after France in July introduced a 3 percent digital-services tax for firms with more than \u20ac750 million of global revenue, including \u20ac25 million in France \u2014 a net that captures mainly U.S. firms, including Google and Facebook.<\/p>\n<p>Several European countries are following suit, with Italy and Austria introducing their taxes on January 1 and the U.K. coming with one in April.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.politico.eu\/wp-content\/uploads\/2020\/01\/GettyImages-1064038256-714x476.jpg\"\/><\/p>\n<p>French Economy Minister Bruno Le Maire | Alain Jocard\/AFP via Getty Images<\/p>\n<p>Le Maire warned that a move against France was likely to be met with reaction from several EU states.<\/p>\n<p>\u201cIf the U.S. hits France because of a national digital tax, they will have to start hitting Italy, Austria, the U.K. And we will enter a trade conflict between the U.S. and Europe. Is that what we want?\u201d Le Maire said, adding that potential U.S. sanctions would be \u201cunfriendly, inappropriate and illegitimate.\u201d<\/p>\n<p>Paris would be \u201cready to react\u201d to tariffs by taking the case to World Trade Organization, the worlds main trade court, he said.<\/p>\n<h3>Faint promise at OECD<\/h3>\n<p>Yet taking the World Trade Organization route would be unlikely to bring speedy resolution.<\/p>\n<p>The WTO has been on <a href=\"https:\/\/www.politico.eu\/article\/trades-big-challenge-how-to-resurrect-the-wto\/\" rel=\"noreferrer noopener\" target=\"_blank\">life support since early December<\/a>, after the U.S. blocked the appointment of judges to the WTOs appellate body, the highest dispute-resolution body.<\/p>\n<p>This means countries can still ask for WTO rulings on disputes, but the winner will be unable to enforce the ruling since an appeal from the losing party will slide into legal limbo. Trade disputes may never be resolved and escalate into tariff wars.<\/p>\n<blockquote><p>\nA global reform of tax rules could remove Frances incentive to impose a digital tax.\n<\/p><\/blockquote>\n<p>In a hint the EU is working to avoid<a href=\"https:\/\/www.politico.eu\/article\/eu-trade-boss-backs-france-in-transatlantic-spat-over-digital-tax\/?utm_source=RSS_Feed&amp;utm_medium=RSS&amp;utm_campaign=RSS_Syndication\" rel=\"noreferrer noopener\" target=\"_blank\">Read More \u2013 Source<\/a><br \/>\n[contf]<br \/>\n[contfnew]<br \/>\n        <img decoding=\"async\" src=\"https:\/\/snap.md\/wp-content\/uploads\/2018\/03\/politico-logo.jpg\"\/><\/p>\n<h5><a href=\"https:\/\/www.politico.eu\/\" rel=\"noreferrer noopener\" target=\"_blank\">politico<\/a><\/h5>\n<p>[contfnewc]<br \/>\n[contfnewc]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The United States thought it was entering a trade dust-up with France. It may end up in one with the..<\/p>\n","protected":false},"author":1,"featured_media":140719,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[202],"tags":[],"class_list":["post-140718","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>EU trade boss backs France in transatlantic spat over digital tax - Business News Report<\/title>\n<meta name=\"description\" content=\"The United States thought it was entering a trade dust-up with France. 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