Thursday was voted in the French Parliament the "GAFA tax" (Google, Apple, Facebook, Amazon) which plans to tax large digital companies commercially active on the French territory. A tax that Donald Trump does not like very much.
Remember that these tax targets companies offering online advertising, trade in goods or intermediation services, and whose turnover is more than 750 million euros worldwide and more than 25 million euros in France.
Retaliation planned by Washington
Before the final adoption of the law by Parliament, which was held on Thursday, July 11, the US Trade Office announced that retaliation could be considered, according to section 301 of the US Trade Act.
According to the Trade Representative, Robert Lighthizer, US justice has one year to know if this tax is indeed " discriminating or unreasonable and whether it weighs on the trade of the United States or restricts it ". The consequences are, however, already partly known since the White House has the support of the Congress as well as the Democrats.
Following the Washington inquiry into the impact of the GAFA tax, negotiations could begin between the two countries, and in the absence of a decision, France could be imposed customs sanctions, proportionate to the damage estimated. Donald Trump would like the GAFA to be taxed according to a multilateral decision, like the Organization for Economic Cooperation and Development (OECD).
Sanctions ignored by Parliament
A few minutes before the final adoption of the " tax on digital services ", including the GAFA, the Minister of Economy, Bruno Lemaire wished to express himself, sending a message to Washington at the same time.
He announced that France was ready to negotiate the terms of these taxes, the threats are not necessary, before recalling: " France is a sovereign state, it decides sovereignty of its tax provisions, and it will continue to decide sovereignly on its tax decisions ". Bruno Lemaire wishes to be able to discuss it during the G7 Finance which will take place in Chantilly on July 15th and 16th.
This GAFA tax, in addition to touching the United States, also impacts German, Spanish and Chinese companies. But it seems that this is the drop off too much for Washington, this one adding to the problems that the United States already meets with the European Union concerning the steel, the aluminum, the agricultural products, and the automobile. A German delegation in North America, therefore, believes that reprisals can be expected across Europe in the coming months.
0 Comments