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Home arrow newsitems arrow EU Trade Commissioner Hogan and MEPs warn USA not to overreact to Digital Tax, but pursue Dialogue

EU Trade Commissioner Hogan and MEPs warn USA not to overreact to Digital Tax, but pursue Dialogue

Written by ACM
Thursday, 19 December 2019
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*Strasbourg/EU Parliament/Angelo Marcopolo/- In the 1st ever Debate in EU Parliament on US possible reactions to Digital Tax, New EU Commissioner for Trade, Phil Hogan from Ireland, warned USA not to overreact, but Better pursue Dialogue through OECD and/or other ways.      

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- "it would be a matter of significant concern to the (EU) Commission  if the US should decide to introduce tariffs against the EU", in an "Unilateral" move, "for the 1st Time" in History,

- Similar methods "have previously been used only in response to unfair trading practices in China’s non-market economy in order to justify US tariffs against China", Hogan pointed out.

- But, here, on the Contrary, it's about "ensuring that Digital Companies pay their Fair Share of Taxes", he stressed. Already since 2018, EU Commission had "made 2 Proposals" : (A) "a Short-term Target", with "Digital Services Taxation", and (B) "a Long-term Comprehensive Solution", by "adjusting the Definition of a Permanent Establishment... to include Digital ...for Corporation tax", he Reminded. EU Parliament "supported the Digital ServicesTax", "Pending a Comprehensive Solution", he added. Because there are "increasing pressures ... faced by Member States to act, given the risk that their Corporate tax base is being Eroded significantly over Time and the perceived Unfairness of the situation", he explained.

AnOther Possibilty is to "accelerate Discussions at the OECD level to find a Global Solution on taxation issues, including a global Digital service taxation"

- But, Meanwhile, "unfortunately", the EU "Council did Not Find Agreement....on the Beginning of 2019", so that "                            "France and some other Member States then, proceeded to adopt or prepare National Digital service Taxes".

=> Then, "the USA started an ... Investigation on July 2019", which "is the 1st US investigation into a digital service tax, despite France being Neither the 1st, Nor the Only country that has adopted it".

- However, on August 2019, "on the margins of a G7 meeting in Biarritz", Presidents Trump and Macron Agreed "that France would continue levying the tax and would Reimburse companies if subsequently there was a difference between the French tax and the OECD Global solution'.

- But, "Despite that", "the US continued with its investigation with a negative determination on 2 December 2019, claiming that France’s digital service tax is unreasonable, discriminatory and burdens or restricts US commerce" : "This ...opens the route for Unilateral Measures, under US Law".


>>> But, the EU "Commission calls upon the US Not to break its obligations under international Law.... President von der Leyen made clear that the EU will Act and React as One, Against any                                          Unilateral measures outside the multilateral trading system. The EU will collectively Defend a Member State, If a trading Partner takes Unilateral trade Measures Against it !", he Warned.


- "It would be the 1st time that the US has used this instrument Against the EU, since the WTO was founded in 1995" ,

while, on the Contrary, "the US Statute envisages further Discussions as an option"... "So, we in the (EU) Commission will Keep on Pushing for these Discussions", Hogan concluded Today.

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+ In the subsequent Debate, French MEP Marie-Pierre Vedrenne, Speaking on behalf of the Groupe "ReNew", Criticised a "World Trade in "Troubled Waters", and Pleaded for "any Balanced World Trade Based into Rules".

- But, in Fact, we (EU) Faced Taxes on Aluminium and Steel, our Agriculture producers are under Customs, on the occasion of the Affair "Airus/Boeing", and Nowadays, there is also a Threat for Various "Heavy" measures Against Trade, she Criticized.

- It's Not True that this Digital Tax would be "Discriminatory". It only represents a Juste Remuneration for Digital services, she found.

=> EU searches a Negociated Solution inside the OECD, and we Support that. We don't want any Trade War. More Tensions will only provoke more Losers. We want Better Dialogue !", she concluded.=

+ "And EU Solidarity !", added also Irish ChristianDemocrat MEP Maria Walsh.

 


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  Ten Years of ECHR : 1998 - 2008 show need of Revival in 2009-2010 coinciding with 2009 EU Election
   

A threefold, coordinated move by new Top French Political actors in the 2009 EU Parliament Elections, expressed in Strasbourg a will to boost Europe's Political dimension close to Citizens' concerns, going from protection of Economy to defence of Human Rights.    

The move met an exceptional ECHR's call for a "revival" of Human Rights' protection mechanism', in a Mega-Conference, early 2010.   

Obviously focusing on June 2009 Elections to EU Parliament, it involved from the outset the recently nominated "dual" Head of French Governing Party (UMP)  Michel BARNIER and Rachida DATI :

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     - "As President Sarkozy has clearly said, we (France) are in favor of a Strong, Sovereign and Independent, Political Europe, which protects its Citizens, and not for a large Super-Market, nor for a Europe under influence",

    "This goes for everything, including Energy", added to "EuroFora" the experienced former EU Commissioner, Minister of Foreign affairs, currently of Agriculture and Sarkozy's new pick as Leader of the Governing party UMP to EU 2009 Election, Michel BARNIER                                              .                             

  - Human Rights are important because they are at the Heart of the Political Europe that we aspire for : I.e. a Europe able to act and protect its Citizens, stressed also the New French Minister for European affairs, Bruno LE MAIRE, while meeting Strasbourg's Journalists at his first visit to the CoE.   

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This is one of the main interests for CoE, which is also a natural place for cooperation between EU countries and Russia or Turkey, which was recently helpful at the Middle East crisis, he added.

The move gained momentum with French Minister of Justice, Rachida Dati's main observations at ECHR's 5Oth Anniversary :   

- "While we are seeking Europe's Borders and Identity, you (ECHR) remind us also of its Values", Human Rights, Dati noted.   

Citizens seek more and more often ECHR's help, and the tempo accelerates, Europa awaits a symbol, while national legal orders are not freezed   

And she expressed "support" to ECHR President Jean-Paul Costa's call to satisfy the vital need to revigorate the PanEuropean Court by deciding big changes at a High-Level Conference open to a large audience, a kind of "Etats Generaux" of Human Rights, at the beginning of 2010.       

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It's not so much the recently growing number of applications for Russia or Ukraine etc, which seems to be Costa's main concern : In fact, the cases declared "admissible" are much fewer...    

But rather the persistent violations of Human Rights, sometimes very grave (ie. murders, torture, abritrary deprivation of liberty, oppression of freedom of speech, destructions of homes/properties, etc), despite numerous, repeated condemnations by ECHR. So that CoE's Ministers, due to "supervise execution" of ECHR's judgements, are overloaded.   

F.ex. most Media noted that Turkey still remains, even in 2008, the 1st among 47 CoE member States in the number of condemnations by ECHR :  257, compared to 233 for Russia, with a population more than the double..    

The problem is that it's not the 1st time at all : During all the last Decade 1998-2008, Turkey was condemned by ECHR much more than any other State, and for particularly grave violations :   

- 1.652 condemnations, compared to 605 for Russia, 548 for Poland, 494 for France, 476 for Ukraine, etc.   

Italy's second place with 1.394 condemnations is a misleading false appearance : In fact, most of them (999) concern mere "procedural delays" in national courts. Same for France.   

On the contrary, Turkey was condemned 180 times for Killings, 192 times for Torture or Inhuman/Degrading treatments, 340 times for arbitrary deprivation of Liberty, 528 times for "Unfair trial", and 169 times for oppression of Freedom of speech, (etc). And the latest, 2008 numbers, indicate no change in this trend, (See supra).   

The current Spanish CoE Presidency (November 2008 - May 2009) has made of the implementation of ECHR's judgements its 1st Priority.   

ECHR's President, Jean-Paul Costa, stressed in its 2009 Annual Press Conference, CoE Member States' obligation to implement the judgements, according to Article 46 of the European Convention on Human Rights.   

Moreover, if CoE's Committee of Ministers delays to ensure implementation, then, the repetition of violations in similar cases provokes a multiplication of complaints tabled to the Court, which overload the mecanism for the protection of Human Rights, denounced Costa.          

A series of Debates on "the situation of Human Rights in Europe", focusing on the "need to fight against Impunity" of perpetrators of grave crimes, is  currently prepared by CoE's Parliamentary Assembly for the session of June 2009.  

The final Timing comes shortly AFTER the EU Elections, but the main Reports should have been adopted before.

Meanwhile, French President Sarkozy and German Chancelor Merkel's recent call "for a Political Europe" in 2009 EU Elections (See earlier "correspondence from Paris, Elysee Palace), seems more and more endorsed also by other EU Countries' Top MEPs :

Thus, f.ex., EU Parliament's 1st vice-President, Greek MEP Mrs Rodi KRATSA, speaking to "EuroFora", agreed that 2009 EU Election would be a "naturally good" opportunity to debate what really interests EU Citizens : "The Future of a Political Europe, able to face the Economic Crisis, with a Culture and identity which attracts the People"

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(Photo taken earlier during Sarkozy's 1st visit at EU Parliament, in 2007 : Sarkozy and Merkel's Ideas for a Political Europe inspire also other EU politicians accross the continent)..
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