U.S. government investigates a potential threat to U.S. and global e-service providers: France's digital services tax

On 10 July 2019 the Office of the U.S. Trade Representative (USTR) initiated an investigation pursuant to Section 301 of the Trade Act of 1974 into France's digital services tax to determine whether the tax is discriminatory or unreasonable and burdens or restricts United States commerce.

Following an affirmative finding by USTR, the United States may take unilateral actions against imports of goods and services from France (including the imposition of a tariff or quota) or may initiate World Trade Organization (WTO) dispute settlement proceedings, among other actions.

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