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AUGUST 2020

New Trade War: US Punishes France For Its Independent Policy

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New Trade War: US Punishes France For Its Independent Policy

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The coronavirus epidemic has temporarily eased tensions between the US and its trading partners. However, as the world’s economies begin to gradually return to normal functioning, the administration of Donald Trump has again resumed its economic attacks. They target not only the enemies of the United States but also their partners, and the last one concerned France.

On July 11, the United States announced 25 percent customs duties (totalling $ 1.3 billion dollars) on goods from France. This decision of the White House is caused by the adoption in France of a tax on the services of major digital companies, such as Amazon, Apple, Facebook and Google. The tax was named GAFA after the capital letters of the digital giants. The issue of digital tax has become the subject of a bitter disagreement between the US and France.

France and the United States have been opposing each other on the issue of GAFA tax for quite a long time.

A year ago, on July 11, 2019, France became the first country to adopt a tax on digital giants and other multinational corporations. The law imposes a tax on large technology companies that have a global turnover of 750 million euros and a turnover of 25 million euros in France. The French GAFA tax imposes digital giants at a rate of 3% of revenue in France, including targeted advertising on the Internet, selling data for advertising purposes, and connecting users through platforms.

New Trade War: US Punishes France For Its Independent Policy

Illustrative image

Taxation of digital giants and multinational corporations is the main issue on the way to adapt the global tax system to the process of digitalization of economies that has been taking place over the past decades.

“There is an opinion all over the world that the international tax system agreed within the framework of the League of Nations about 100 years ago no longer works. “- said the IMF’s Director of tax affairs, Vitor Gaspar.

In response to the law passed in France, in December 2019, the United States threatened to impose additional customs duties of up to 100 % on a wide range of imported French goods, including wines and cheeses, totaling 2.4 billion euros. (about 2.15 billion euros).

New Trade War: US Punishes France For Its Independent Policy

Bruno le Maire, Source: AFP

Meeting pressure from Washington, Paris eventually backed down in January 2020, delaying the collection of the GAFA tax until December 2020.

The US threats were not implemented. Shortly in Davos, a compromise was reached between the French Minister of the Economy and Finance, Bruno Le Maire, and the US Secretary of the Treasury, Steven Mnuchin. It was supposed to help reach a final agreement on taxation of digital companies within the framework of the OECD. The negotiations seemed to be going in a positive direction. The parties reached an agreement, which established a framework of the development of digital taxation by the OECD.

“This working base should allow us to technically start working next week to look at different tax options for digital activities, so we have a few months to come to a deal,” explained Bruno Le Maire.

Since then, the situation has critically deteriorated. The US presidential election, which will be held in November 2020, is approaching. Perhaps the differences could have been resolved earlier, but since negotiations slowed down due to the coronavirus epidemic, it is no more profitable for Donald Trump to allow such concessions at the moment. As a result, in mid-June, the White House announced a “break” in the negotiations, under the pretext that “governments around the world are focused on responding to the Covid-19 pandemic and safe opening of their economies .”

Hereafter, the US has announced 25 percent customs duties on French cosmetics and bags. This decision will come into force on January 6, 2021, similarly to the French GAFA law. The postponement gives more time to solve this problem within the framework of the OECD.

The European reaction was immediate: “this is a provocation,” replied the French Economy Minister. “We were inches away from an agreement to tax digital giants, who are probably the only ones in the world to have received huge benefits from the coronavirus.”

He added that Washington’s attitude towards its allies and systematic threats of sanctions were unacceptable. Bruno Le Maire warned that France wouldl never abandon its tax on digital giants.

France confirmed that it wanted an international solution to this issue: “we call on the US to continue negotiations on taxation of digital giants within the framework of the OECD, knowing that the vast majority of States support this proposal,” the French Economy Minister recalled in a statement. “This is the only way out of this dispute. Otherwise, we will apply our national tax in France (which was adopted in 2019) in 2021.”

The International Monetary Fund (IMF) also called on the US to come to an agreement on taxation: “It is very important to avoid trade wars, it is very important to avoid tax wars,” said Vitor Gaspar, Director of the Fiscal Affairs Department of the International Monetary Fund.

The measures taken by Washington are quite declarative, as they suppose additional six months for negotiations. Resolving differences within an international organization would be beneficial for both sides.

New Trade War: US Punishes France For Its Independent Policy

Turkish Navy frigate Gaziantep escorts drilling vessel Fatih October 30, 2018 © Reuters / Can Sezer

However, statements from the US have a great political significance. Protecting the interests of American digital giants allows Donald Trump to maintain support within the country before the upcoming elections.

At the same time, the US uses economic threats as a method of pressure on its partners on the other side of the Atlantic. In December 2019, Trump announced his intention to impose duties on French goods a few days before the NATO summit in London. This statement was intended to threaten French President Emmanuel Macron, who shortly before  had announced the “brain death of NATO”.

Today, discussions on the GAFA law resume at a time when France is also at the epicenter of NATO’s internal political disputes. France suspended its role in Operation Sea Guardian, accusing Turkey of violating an arms embargo against Libya. It came weeks after Turkish ships had targeted a French warship in the Mediterranean, what Ankara strongly denies. It is likely that Washington’s recent imposition of customs duties on French goods is intended only to threaten Macron for conducting France’s independent policy on the international arena.

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  • Lone Ranger

    Keep sanctioning everybody.
    Good good….:)
    The more sanctions the sooner everybody will wake up.

    • occupybacon

      You hope for next year yet?

  • Lazy Gamer

    Make your own internet, problem solved. Everybody needs this due to the pandemic. As this is a critical infrastructure, and societies foundation, it cannot be left to the whims of a select few that can be controlled.

    • occupybacon

      Yeah, since the economic sanctions Russians became the greatest defenders of free global trade. Except when Ukraine wants to free trade with EU.

      • Lone Ranger

        Actually the Yanukovich govt was toppled by the CIA.
        After they signed the free trade agreement with the EU…

        • occupybacon

          Yanukovich vetoed the free trade with EU, after Ukraine parliament signed it along with Georgia and Moldova. Putin said Yanukovich followed the order, angry people took the streets fighting Berkut for 6 months. If it was a CIA coup it was fast. You know coups are fast so other forces don’t have time. Putin had plenty if time to figure out if CIA plans a coup. He was not aware.

          • Lone Ranger

            He later approved it.
            Not all coups are fast.
            Look at Syria…
            It wasnt Berkut whom sniped protesters but ukropnazi, Polish and baltic nazi terrorist black ops units on CIA payroll.
            Putin was aware of all that.
            But Ukraine is such a shithole it aint worth fighting for.
            West is slowly realising that too, especially the EU.
            Ukraine is on the same road as Yugoslavia, balkanization.
            It will become 3-4 smaller countries within 5-10 years.

          • occupybacon

            Coup is not synonim with civil war. But whatever floats your boat, Ivan.

          • Lone Ranger

            There wouldn’t be a civil war if not for the coup…
            And not for the nazi paramilitary forces invading the east because they were peacefully resisting the new CIA backed regime.
            Let’s not forget the first fatalities were killed by ukropnazis, not by Russia or Donbas, Shlomo…

          • occupybacon

            By nazi you mean the DNR and LPR terrorists?

          • Lone Ranger

            No.
            The cia/ oligarch run ukropnazi terrorists.
            They are the one killing civs not vice versa.
            Aside from that DNR are commies.
            But thats still better than a braindead nazi…

          • occupybacon

            DNR terrorists hide in residential areas and shot from there, like any terrorists. Donbas civs are human schields for those terrorists who assasinate each other anyway.

          • Lone Ranger

            Not according to osce.
            Proven to be ukrop lies.

          • occupybacon

            I don’t read the Kremlin toilet paper

          • Lone Ranger

            Osce has nothing to do with Russia and you know that.

          • occupybacon

            Osce complained they were not alowed by the terrorists to go anywhere they wanted so if you red anything else it must be Kremlin toilet paper.

          • Lone Ranger

            BS.

          • Lone Ranger

            Usual Kievnazi propaganda.

          • occupybacon

            More powerful than Moscow toilet papers

          • Lone Ranger

            I guess thats why Russia is rising while Ukropisstan going down the drain…

          • occupybacon

            Russia is raising faster than USSR, in the same dirrection. They got lucky for a short period when the oil price was booming but they didn’t size the moment to diversify industry and exports, there are no Russian brands well known, other than Kalasnikov.

          • Lone Ranger

            Ural, Mig, Sukhoi, Kamaz…
            I guess that’s why Russian forex reserves are still growing on avg $3billion per month.
            I wish every country would do so bad…

          • occupybacon

            Yeah everywhere you go you see a Kamaz, consumers love these products.

          • Lone Ranger

            In many places indeed.
            Won the Dakar in the truck category 17 times, or was it 18, I lost counting…
            No other truck ever achieved that.

          • occupybacon

            Silly one don’t you know all cars/trucks that participate in competitions are modified and not the serial production versions?

          • Lone Ranger

            Kamaz is pretty close to the stock version.
            Modified or not, nobody else won 17 times in either categories except Kamaz.
            You hate everything Russian do you lol.
            I dont hate Antonov, oh wait my bad thats Russian too.:)
            Kruschev stole the company from Russia.
            Non the less Oleg Antonov and most the engineers were Russian, still are to this day.

          • occupybacon

            Lol. Do you own a Kamaz or any other Russian product? Or do you consume Russian food?

          • Lone Ranger

            We had plenty of Ladas in the 80s.
            Im thinking about buying a new vesta.
            Russian tea is pretty good.
            Their car battery charger is the best I ever used.

          • occupybacon

            Lol

          • JIMI JAMES

            that is f1 ,not homologated manufactured products like in dakar,fkn drr!

          • occupybacon

            Smart boy like most of Russia ass kissers

          • Lone Ranger

            In the opposite direction…

          • occupybacon

            Indeed, their leaders become smaller and smaller. The same their population.

          • Lone Ranger

            Sound like Ukraine…
            Russian population grew for the past couple of years.

          • occupybacon

            They grew in other countries by running away.

          • Lone Ranger

            You mean like 8million Ukrainians run away from Ukraine?
            Ouch…

          • occupybacon

            Only the poor ones, from Russia the middle class ran

          • Lone Ranger

            If by middle class you mean cia agents and double Israeli citizenship trolls you are right.
            Funny thing nazis and jews go hand in hand in Ukraine.

          • occupybacon

            Yes only cia agents dare to be middle class in Russia, you the poor are the real patriots.

          • Lone Ranger

            There is plenty of middle class.

          • occupybacon

            They are all hidden in that secret base from Cuba.

          • Lone Ranger

            Nah, they are driving on avg better cars than people in most western cities.
            Dont be jelly.
            Russia didnt fuck up Ukraine.
            The U.S. and oligarchs did and still do.
            I think you have a false sense of idea the west is your friend.
            They arent.
            They are your enemy.
            Their main goal is not to lift up Ukraine but to keep it down.
            Why?
            Because according to their doctrine Russia together with Ukraine is a superpower.
            Without a regional power.
            They dont need you, you dont have anything to offer to them.
            Your only goal is to stay disfunctional.
            Thankfully Russia sínt waisting time and money with you guys.
            China and the new silk road is a lot better deal.
            You had your chance…

          • Lone Ranger

            Ukraine is losing its youngest generation.
            Same as Poland and the Baltic states.
            Sad story really.

          • occupybacon

            Russia is in the same situation.

          • Lone Ranger

            Not really.
            They gained millions from Ukraine, former Soviet states, and rising number of births.
            Its slso funny that manny Russians whom emigrated are coming back from the UK, U.S. and Israel.
            Oy gevalt…:)

          • occupybacon

            Haha good one, especially from Israel. It’s too hot there.

          • Lone Ranger

            Depends.

          • JIMI JAMES

            That is true for your rada,Ok so you need to kearn not drink from the cup as sprogbreath over there who pay you to lie like there’s no tommorow,then again,
            you have not proven in fact any shred of evidence to back you claims,other than rarely trying to suggest what we all already know,that’s kinda like ‘fkn drr dude?

          • occupybacon

            Putin, Medvedev, Soigu the circus of midgets came in Kremlin, free tickets for the world to laugh. If lil putin sits on a chair at UN, Trump or even Xi could sit on him by mistake.

          • JIMI JAMES

            They drowned usa in oil,virtually before backing off,proving whos real boss,
            this is just one of the many truths,also s125,s200,s300,s400,s500,supersonic,hypersonic,sukoi,mig,and a host of other goodies that sure work alot better than usa 1.5 billion dollar usa fishing trawlers?

          • occupybacon

            Israel piss on S-x00 every week inbSyria

          • Lone Ranger

            The terrorists are the ones whom shell residental areas.
            That would be kiev…
            DNR could also shell resedintal areas but they arent braindead nazis…like the trolls from kiev.

          • occupybacon

            Hehe so let the terrorists shell the army from residential areas and do nothing :)

          • Lone Ranger

            They didn’t shell from residental areas.
            In fact most the time they didn’t shell at all from anywhere.
            98% the time its ukrops shelling Donbas mostly terror bombings, because zhsts the only thing they can do.
            When they shoot back you cry wolf.
            But it seems EU has figured it out by now because at this point nobody takes you guys serious anymore.
            Which is a good thing…

          • occupybacon

            There are plenty of footage on youtube to doccument

          • Lone Ranger

            About Kiev nazis shelling Donbas, indeed.

          • occupybacon

            Sheling Donbas terrorists. Let’s see how the newly purchased Turkish drones hunt their asses, if any if them survived the wave of assasinations.

          • Lone Ranger

            You are the terrorists tho.
            If they are as useless as in Syria and Lybia and I wouldnt worry too much ;)

          • occupybacon

            I am the terrorists? Please tetract your accusation or I’ll be sad all day.

          • Lone Ranger

            Aren’t terrorists supporters terrorists themselves?
            Ok here is a lolly.
            Don’t be sad…

          • occupybacon

            Aww how nice from you. Is from Porosenko?

          • Lone Ranger

            Of course what else ;)
            Roshen all the way…

          • Lone Ranger

            Ukropnazis are at least conseqvent.
            They always side with nazis…
            And they always losing…oy oy…

          • occupybacon

            Ruskies take nazi wannabe Ukies very serious because 1. They are scared of them 2. To beg West side with them in this war. When hearing a moscal crying Nazi, an Ukrainian can’t but feel pride.

          • Lone Ranger

            They take them so serious they give them gas and food so they wont freeze and starve.
            You guys are special need…:)
            adolf and his nazi toyboys were also proud for a while…
            And they were 10times better soldiers than any ukrop.
            I only wish you guys would actually attack not just talk about it.
            Russia needs to finish the cia/nazi infestation of her backyard.

          • occupybacon

            Haha, Russia can’t finish anything, it’s a fragile girl.

          • Lone Ranger

            Sounds more like the U.S.

          • occupybacon

            It’s funny because you were right but without having a clue, just for the sake of kissing Russia ass

          • Lone Ranger

            I only kiss my girlfriends ass…
            Im right 9 out 10 times.
            True story.

          • occupybacon

            You are true 9 in 10 for each ass kiss and 1 false when saying that you have a gf.

          • Lone Ranger

            No hit

          • Harry Smith

            If Putin was not aware how would you explain the Crimea?

          • occupybacon

            The Crimea invasion was prepared probably since the 90’s. Just in case.

          • Harry Smith

            Any evidence?

          • occupybacon

            No just common sense. But could be wrong of course. I believe that if Putin had info about a coup he could prevent that and then Crimea and Donbas were not necessary.

          • Harry Smith

            Putin helped Ukraine to recover after Orange Revolution but Ukrainians were stupid enough to commit same mistake twice. You know, sometimes it is more rational to shoot your wife than shoot her lovers every week.

          • occupybacon

            All the ex satelites are doing better now, Ukraine spent too much time under Russian influence, that’s why they are still poor.

          • Harry Smith

            Yeah. Georgia is the richest country in the Europe, Tajikistan has bigger GDP than Iran and Baltic republics have the biggest income in EU per capita and population growth. Looks like you know what are you saying about.

          • occupybacon

            Those were part of USSR, satelites were the communist blick, Poland, Hungary, Romania etc. Georgia and Tadjiks, like Ukraine, are too close to Russia. Baltics on the other hand are doing pretty well, don’t you think?

          • Harry Smith

            Oh yeah. Tell me about Romania because I am from the region neighboring Romania and I do speak some Romanian. After Romania joined EU the Romanian industry blow down drastically. They had huge metal production plants which were closed due to the EU ecological regulations. And a lot of another industry plants were closed too. The only things which were really supported by the EU bureaucracy were tourism and agriculture. Most of capable Romanian youth leaved the country for better life. Same thing is in Poland. And today no Romania neither Poland doesn’t have any future without EU subsidies because they don’t have any valuable industrial or high tech corporations like Bayer or Du Pont. These countries are drained. Don’t know about Hungry but we can ask the Lone Ranger.

          • occupybacon

            That’s the deal with the West, you get some you give some, but life is better than under Russian influence.

          • Harry Smith

            Don’t say so. There are a lot of Romanians who say that their life in times of Ceausescu was better. Can say nothing about Poland or Hungary.

          • occupybacon

            I am aware that there are lots of nostalcists in each ex communist country. Some had families close to the government aparatus, some are just stupid. They hate everything that’s new including the Internet. Socialism has its good things too but the last period of communism was hell, it’s a system that discourages competition so it ends encouraging mediocrity.

          • Harry Smith

            Both socialism and capitalism have something good. That’s why I am conservative. Because classic conservatism says that no one ideology can be accepted as dominant. It is wise to take only the best from any existing ideology.

          • occupybacon

            Sounds good

      • Oli Tobias E

        Haha free trade? Like Africa? An IDIOT u must be! The Ukraine can sell almost nothing to the EU because of the Standards….but the other way we are sellling to them…their industry is dying…the girls are here in Germany as hookers….the young men drive subcontracted as delivery men and sleep in their vans….because they cant afford nothing else…..poor and cheap slaves for Europe thats what Ukraians are for us. Im German and I See them every day on the Highway stops..

        • occupybacon

          Ok Ivan, go back to your cave.

          • HiaNd

            What unimaginative twat.
            Why you call everybody “Ivan” if you don’t like their comment?!

            That’s all you know to say:”OK Ivan do this… go there..”
            Man just told you that he is German you pathetic simpleton!

          • occupybacon

            Why do you think Ivan is more insulting than being a caveman?

          • HiaNd

            Shut up Bulgarian.
            When I think that I took you for Americunt and you are Bulgarian traitor only.

          • occupybacon

            Go back to Baical, mongol

          • HiaNd

            You will be begging to go back East because West is about to collapse like house of cards

          • occupybacon

            That’s what USSR said. Guess who is no more :)

          • HiaNd

            USSR went where U.S. is about to go and never come back

          • occupybacon

            Yeah sure Ruble was a global currency like dollar today rofl

          • HiaNd

            dollar is toilet paper about to become worthless paper…

            and if I would have to choose the paper FIAT currency now I would definitely choose Ruble and not a dollar.

          • occupybacon

            But you can’t chose :)

          • HiaNd

            ” if I would have to choose the paper ”

            That was in conditional, a hypothetical question.

            I can choose silver and gold which is best store of value for thousands of years and it is better option than any fiat currency, specially much better than worthless dollar.

          • occupybacon

            And what are you wearing today, my lady?

        • JIMI JAMES

          khazar catholic/polish whores more like it,any woman whos orthodoxy would vomit just by scenting the staunch,More greedy may accept as long as yous pay big!

    • JPS

      Ban Jew media monopolies.

  • occupybacon

    Misleading title. France tax US companies, US tax French companies. Fair enough. The French small business will pay more on adwords and the American fattie will pay more for French cheese.

    For a while everyone especially Russians started to believe they are entitled to trade with American banks and decry sanctions like little bitches. Go eat your buckwheat, spoiled brats.

    • Harry Smith

      Well at least we produce buckwheat by ourselves. Shall we discuss what food produces your country?

      • occupybacon

        small turds of meat :)

  • johnny rotten

    Less the sanctions are useful more they propose them, if this is not madness what else is it?

    • Ivan Freely

      Desperation. DC is going to run out of candidates to sanction.

  • Zionism = EVIL

    The FACT is that Americunts are rabid dying cunts and finally the froggies openly stated that Americunts are in total decline. However, since the deadbeat bankrupt shithead losers don’t produce him anything it will hurt the losers even more as 120 million have no jobs, homes or future.

    https://uploads.disquscdn.com/images/a9c8731ff53b9efa686d750dc8e369296b2cdbed940e642068a3a4e1d4dd8460.jpg

    • Frank G

      look at that rusty neglected infrastructure in the backround. the elevated train track-bridge….what a dump.

  • HiaNd

    Trump is doing great job on destroying unity of the West.
    Good bye NATO one terrorist organization less.

  • Black Waters

    U.S modern gestapo. The empire feels threatened by everyone, paranoia in babilonia it’s reaching uncontrollable levels.

  • Trap Is Not Gay
    • Ivan Freely

      Actually, Bibi would be blaming Iran. The US/UK are blaming the Chinese.

      • Trap Is Not Gay

        More or less the same.

        Never the Jews.

  • JPS

    Trump going to the mat for Big Tech, how can anyone seriously believe that Trump in in actuality truly opposed to the mass censorship? Are Trump’s Jews unhappy about churches burning, blacks rioting and statues coming down? If you want to know what Trump is going to do in a second term, just ask yourself what the Zionists are going to ask him to do. And in a second term, Trump will join the chorus of condemnations targeting his voters, as his daughter steps front and center and takes a more open executive position.

  • julot

    Which independant policy !? France is a De Rostschilt colony.. Best illustration of this being that Macron was a Rostschilt banker before becoming a ‹president›

  • julot

    I see no comment that doing so, Trump is fighting global tax impuls, so fighting globalist agenda

  • azanjac

    France is a vassal, they rightfully get no say. Unless it revolts against their masters they will always remain vassals and should be treated as such by all. I get joy when seeing how the US hegemon cucks France, just keep pushing their shit in Donnie, keep going hard.

  • goingbrokes

    There has not been a free market for quite a while…