CCIA: Anticipated U.S. Response To French Digital Taxes On U.S. Companies is Crucial

BY Heather Greenfield
January 5, 2021

Washington — In response to French digital taxes aimed at U.S. companies, the U.S. Trade Representative is expected to respond tomorrow with tariffs on $1.3 billion on French products.

USTR concluded in its Section 301 investigation that the French tax discriminated against US firms. USTR announced these tariffs last summer, but suspended the collection on these tariffs for 180 days. France has begun collection on its national digital services tax. 

The Computer and Communications Industry Association has testified and offered comments against discriminatory digital taxes and supports OECD-led global tax reform. CCIA previously filed comments with the U.S. Trade Representative in response to USTR’s query on the French digital tax.

The following can be attributed to CCIA President Matt Schruers:

“The need to resist discriminatory taxes on U.S. companies in France and other countries is urgent. Action by USTR will send a clear message that foreign digital taxes will not go without a proportionate response. It is crucial to demonstrate that the U.S. takes it seriously when one of our trading partners enacts taxes clearly targeting U.S. companies. We appreciate USTR’s ongoing efforts to ensure a level playing field, enforce international commitments, and disincentivize discriminatory actions by trading partners. 

“Continued proliferation of national digital taxes like the one imposed by France undermines ongoing talks at the OECD to get an agreement on global tax reform for the digital age.”

Related Articles

CCIA Welcomes Launch of Indo-Pacific Economic Framework

May 23, 2022

Washington –  The United States and twelve countries have announced the formal launch of the Indo-Pacific Economic Framework (IPEF) earlier today in Tokyo. The IPEF will split into four pillars: trade; supply chain resiliency; clean energy and infrastructure; and tax and anti-corruption. It is expected that participating countries will choose which pillars to join in…

CCIA Encouraged By Second Meeting of EU-U.S. Trade & Technology Council

May 16, 2022

Brussels, BELGIUM — EU and U.S. diplomats met in Paris on May 15-16 for the second meeting of the EU-U.S. Trade & Technology Council. Leadership discussed ongoing strategies for strengthening the transatlantic partnership and to address global trade challenges, with a particular focus on transatlantic response to the Russian invasion of Ukraine. The two sides…

Global Industry Recommendations on ITA Expansion

May 16, 2022

Washington — The Computer & Communications Industry Association joined over 40 other industry associations from around the world in a statement to support the launch of another round of negotiations of the Information Technology Agreement and expand product coverage of one of the World Trade Organization’s (WTO) most successful trade agreements. Since its creation in…