French FinMin Le Maire: US move to pull out of talks on digital services talks seen as act of provocation
French Finance Minister Bruno Le Maire said on Thursday, he considers the US move to withdraw from global digital service tax talks as an act of provocation.
Meanwhile, the UK Treasury responded with a statement, citing that the UK remains committed to a global solution on digital tax after the US decision to pull out of talks.
Top officials at the US Treasury Department and Trade Representative Office announced on Wednesday, the US withdrew from negotiations at the Organization for Economic Cooperation and Development (OECD) to overhaul the global digital tax system.
Recall that France was one of the first countries to enact a 3% digital services tax. The US administration threatened tariffs against France over the law, with President Donald Trump recommending taxes on the top French wine.
Market reaction
The shared currency is little affected by the above comments, as EUR/USD treads water around 1.1250 ahead of the US Jobless Claims data.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
