December 02,2019

Grassley, Wyden Statement on USTR Findings on French Digital Services Tax

Washington – Senate Finance Committee Chairman Chuck Grassley (R-Iowa) and Ranking Member Ron Wyden (D-Ore.) today released a joint statement regarding the U.S. Trade Representative’s (USTR) findings following a Section 301 investigation into France’s Digital Services Tax.
“The French digital services tax is unreasonable, protectionist and discriminatory,” Grassley and Wyden said. “Taking premature action that will adversely and disproportionately affect another OECD member state is contrary to the organization’s goals and shouldn’t stand. We welcome this step from USTR on behalf of U.S. companies being unfairly targeted and harmed by the French tax. We encourage other member states considering similar actions to work within the OECD framework toward a comprehensive solution. We look forward to reviewing the report’s findings in full.”
Grassley and Wyden previously applauded USTR’s announcement of its 301 investigation under the Trade Act of 1974.

Grassley and Wyden have led bipartisan Congressional efforts against unilateral digital services tax measures outside comprehensive OECD action. In July, Grassley and Wyden pressed the Treasury Department to explore all available options to convince the French government to rethink its decision to implement a digital services tax, which Treasury confirmed