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The Unites States has reached an agreement with Italy, Spain, France, the UK and Austria to end the threat of tariffs in exchange for the removal of digital services taxes imposed on companies like Facebook, Amazon and Google.
The imposed tariffs were initiated by the Trump government in retaliation to the digital services tax, which will now end in 2023.
Siro Badon, President of Assocalzaturific, the Italian footwear association, said that international agreements favouring free trade are fundamental for Italian creative companies, who are often indirectly caught in the global political crossfire. He said: “Our products are so representative of our country that they are used as a bargaining chip for finance and fintech.”
The agreement comes alongside a pact between 130 countries this month to overhaul the international tax system and adopt a global minimum tax of 15% as well as change taxing rights so that large multinational corporations are taxed based on where their goods and services are sold, rather than where they operate.
The Office of the United States Trade Representative said Turkey and India, which also have digital services taxes that the United States wants rolled back, did not join the agreement.
Source: La Conceria