No taxes for French wines

US President Donald Trump and President Emmanuel Macron of France finally agreed on the taxation of “Gafa” (Google, Amazon, Facebook and Apple).

After two days of discussions and weeks of negotiations, France stated at the Biarritz G7 that it had reached agreement with the United States on the matter.

“There is a lot of nervousness about this famous French digital tax” but “I think we have found a very good agreement”, said Macron.

The agreement is based on the ability of all G7 countries to agree in 2020 on an international tax for digital multinationals. Once this multilateral tax system comes into force, France will “abolish” the tax and “refund companies their payments as a deduction,” explained Macron.

When asked whether the US was therefore giving up its retaliation on French wine exports, the American president was evasive, joking about his wife’s fondness for French wine.

“I can confirm that the First Lady likes French wine,” said Donald Trump about his wife Melania, without further explanation.

The American President had confirmed a few hours earlier that Paris and Washington were “close” to an agreement on the Gafa tax.

Definitely adopted on July 11, this measure, which will come into force in France this year, taxes large companies in the technology sector not on their profits, which are often transferred via complex arrangements to countries with very low tax rates, but on turnover.

This idea had provoked strong reactions from the American side. An adviser to Trump spoke of a “big mistake”, and he himself threatened to tax French wines, going so far as to mention on August 9 a 100% tax.

The tax is “very imperfect”, Macron acknowledged on Sunday in Biarritz, repeating that this temporary measure would disappear as soon as an agreement between OECD countries enters into force. “It is much smarter to have international taxation,” he added.