WASHINGTON, Jan 29 ― French Economy Minister Bruno Le Maire on Thursday welcomed the Biden administration’s “active participation” in talks on taxing global giants, as well as trailing reduced tensions after years of transatlantic trade battles.
In a phone call, US Treasury Secretary Janet Yellen showed “commitment... to active participation by American teams in OECD tax talks” on multinational companies, including digital heavyweights, Le Maire’s office said in a statement.
The 137 countries in the OECD wealthy nations’ club failed to reach agreement on the thorny tax deal in October, largely due to resistance from the Trump administration, but France now hopes for “an international deal by the end of the first half of the year,” the ministry said.
France faced threats of punitive tariffs from former President Donald Trump for forging ahead with its own digital tax pending a new global levy.
Le Maire and Yellen also discussed “the need to reduce trade tensions with a negative impact on growth, especially between the US and Europe”.
Trump in 2020 imposed 25 per cent tariffs on wine, cheese, olives and other European delicacies in a battle over subsidies to planemaker Airbus.
The EU responded with its own round of tariffs on imports of some farm produce, including wheat and tobacco plus strong alcohol and chocolate, after the World Trade Organization faulted Washington over state aid for Boeing.
Both sides have said they would prefer a negotiated settlement but have followed through on implementing the tariffs, despite hopes for better ties under Biden.
Le Maire had “placed particular emphasis on the very punishing nature of the sanctions for French wine-growers,” the ministry said, adding that he would visit Washington “as soon as health conditions allow”. ― AFP
