France is poised to announce on Wednesday that it is dropping its go-it-alone plan to tax big US tech companies in exchange for Washington’s agreement to press ahead with attempts to find a multilateral solution.
Hopes of an agreement were rising in Davos after several days of intense talks involving the French finance minister, Bruno Le Maire, the US treasury secretary, Steve Mnuchin, and Ángel Gurria, the head of the Organisation for Economic Cooperation and Development.
France Says U.S. Talks Could Produce Agreement on Digital Taxes
France’s finance minister, Bruno Le Maire, said Wednesday that the United States and France had reached a broad framework for using a plan being developed by the Organization for Economic Cooperation and Development to set digital taxes, but that further talks were needed and would take place Thursday.
The announcement came a day after the two countries appeared to strike a temporary truce in a trans-Atlantic spat. President Emmanuel Macron agreed to suspend a French tax on American technology giants in exchange for a postponement of threatened retaliatory tariffs on French goods by the Trump administration.
France agrees to delay new tax on tech giants
France has agreed to delay collecting a new tax on multinational technology firms until the end of 2020, a French government official has told the BBC.
The digital services tax has provoked an angry response from Washington.
The US had threatened to impose retaliatory tariffs on $2.4bn (£1.8bn) of French goods, including champagne and cheese, after the tax was passed in July 2019.