WASHINGTON (Reuters) – The U.S. government said Monday it may slap punitive duties of up to 100%, to $2.4 billion in imports from, France, Champagne,, handbags, cheese, and other products, and after that in France, the new electronic services of the tax could hurt U.S. tech companies.
FILE PHOTO: An employee serves a glass of Champagne is the traditional wine of the harvest for the champagne house of Deutz in Ay, France, on September 22, 2016. REUTERS/Benoit Tessier/Photo File
The us Trade Representative office, said the “Section 301” studies have shown that the French tax was “contrary to the prevailing principles of international tax policy, and it is extremely stressful for the affected U.S. companies, including the Alphabet, Inc.’ s Google’s (GOOGL.O), Facebook Inc (FB.O) and Apple Inc (AAPL.And Amazon.com Inc. (AMZN.D).
U.S. trade representative Robert Lighthizer, said that the government, in order to investigate whether or not to open a similar research in the electronic services of the tax payable in Austria, Italy, and Turkey.
The USTR is directed to the control of the growing protectionism of the EU member states, which unfairly targets AMERICAN companies,” Lighthizer said. His statement made no mention of the proposed digital tax in Canada or in the united Kingdom.
The U.S. trade agency said it would gather public comments through Jan. 14, on the proposed tariff list as well as the possibility of the imposition of the fees, or restrictions on, the French departments, a public hearing is scheduled for Jan. 7.
It does not specify a date, in the case of the 100% duties.
CHAMPAGNE, ROUGE, AND GRUYÈRE CHEESE
The list of targets for a number of products which have been saved up to 25% of the rates imposed by the United States over the controversial European Union’s aircraft subsidies, including in the case of sparkling wines, handbags and make-up preparations – product, which hit the French luxury goods giant LVMH (LVMH.PA) and cosmetics maker L’oreal (OREP.DAD) is hard.
Gruyere cheese, you will also be spared from the m s plane fares that can be charged in a prominent place in the list of French products that are intended to be for 100% of the duties, along with a host of different types of cheese.
The findings, to win the favor of the US legislators and the US tech industry for a long period of time that the tax is unfair, the goals of U. S companies.
“The French services, the tax is unfair, protectionist and discriminatory,” Senators Charles Grassley and Ron Wyden, the top Republican and Democrat respectively of the Senate Finance Committee, said in a statement.
The representatives of the French embassy and the European Union delegation in Washington, could not immediately be reached for comment.
However, prior to the release of the USTR, the report of a French official said that France could not dispute the agency for the cooperation of the market of the results of the studies, the repetition of the Paris, view of the digital tax, is not specifically targeted at U.S. technology firms.
“We will not give up in the taxation” of digital businesses, ” said the official.
FILE PHOTO: A cyclist passes the U.S. and French flags of the Eisenhower Executive Office Building, which is where a majority of offices for White House staff, Washington, February 10, 2014. REUTERS/Kevin Lamarque
In france, the 3% tax applies to income from services is earned by businesses with more than 25 million euros ($27.86 million) to French revenue, and a total of eur 750 million ($830 million) in the world.
The USTR’s report and the proposed tariff list, following months of negotiations, the French Finance Minister, Bruno Le Maire and the Secretary of finance, and Steven Mnuchin, on a global review of digital tax rules and regulations. The two struck a compromise in August, during a G7 summit in France, and that it would reimburse AMERICAN companies for the difference between the French tax and that a new mechanism will be drawn up by the Organisation for Economic co-operation and Development.
But He was never formally ratified the deal, and refused to say whether or not the French rate, the threat was off the table.
Reporting by Andrea Shalal and David Lawder; Editing by Leslie Adler and Lisa Shumaker