CCIA Welcomes USTR Conclusion that French Digital Tax Discriminates Against U.S. Tech

BY Heather Greenfield
December 2, 2019

Washington — The United States Trade Representative announced the findings of the first stage of its investigation into France’s Digital Services Tax under Section 301 of the Trade Act. The report concludes that the DST “discriminates against U.S. companies, is inconsistent with prevailing principles of international tax policy, and is unusually burdensome for affected U.S. companies.” USTR will next seek input on potential remedies.

The Computer & Communications Industry Association welcomes USTR’s investigation and its strong response to France’s discriminatory actions against U.S. tech companies. CCIA filed comments with USTR in August in response to the query on the French digital tax, and will continue to provide input to policymakers regarding why such digital taxes discriminate against U.S. exports.  

The following can be attributed to CCIA COO, Matt Schruers:

“USTR’s report sends a strong signal to France, and has alerted other countries finalizing similar measures that discriminatory taxes will not be tolerated. We are encouraged to see that USTR is also considering action under the Section 301 process against these countries. 

“USTR’s action shows how important the ongoing OECD process is. Countries bypassing the multilateral process with unilaterally DSTs proceed at their peril. As CCIA has emphasized, changes to international taxation rules should be done through a consensus-based, multilateral approach that does not target specific U.S. services. An OECD solution, not discriminatory national digital taxes that incite trade conflicts, remains the best path forward.”

For media inquiries, please contact Heather Greenfield hgreenfield@ccianet.org

 

Related Articles

CCIA Files Comments In Response To Canada’s Digital Services Tax

Jun 18, 2021

Washington — The Computer & Communications Industry Association filed comments in response to Canada’s consultation regarding a digital services taxe proposed in its 2021 budget.  The DST would mirror other unilateral measures pursued by European countries in the past two years.   The United States Trade Representative has investigated these digital taxes in Europe and found…

CCIA Welcomes US-EU Summit Conclusions, New Trade and Technology Council

Jun 15, 2021

Brussels, BELGIUM — U.S. and EU leaders announced a recommitment to the transatlantic partnership to address global trade challenges, and the creation of a high-level EU-US Trade and Technology Council, at the conclusion of today’s EU-US Summit. Leaders also announced a resolution to the long running Boeing-Airbus trade dispute. The Computer & Communications Industry Association’s…

CCIA Welcomes US-EU Summit

Jun 14, 2021

Brussels, BELGIUM — U.S. and EU leaders will meet in Brussels June 15 for the EU-US Summit. The agenda includes “COVID-19, climate, trade and investment, technology, foreign affairs, and common values.” The Summit statement is expected to announce a new U.S.-EU Trade and Technology Council, which could help facilitate discussion on items such as artificial…