US Secretary of the Treasury Janet Yellen on Monday spoke with French Minister of Finance Bruno Le Maire about the importance of working together toward a solution in the ongoing Organisation for Economic Co-operation and Development (OECD) discussions on international taxation, the US Department of the Treasury said in a statement.
During their conversation, Yellen emphasized US support for a strong economic recovery and explained US President Joe Biden’s administration’s broader plans to support jobs and investment in the US, the department said.
“The secretary also expressed support for measures to promote the global recovery through multilateral mechanisms and support for low-income countries,” it said.
Nearly 140 countries are racing to wrap up talks by the middle of this year to modernize outdated rules on how much governments can tax cross-border commerce and set a global minimum corporate tax rate.
The talks stalled last year following a proposal by the administration of then-US president Donald Trump to let companies out of new global tax rules, but Yellen has since dropped that demand.
Yellen had underscored her commitment to reaching a global agreement through the OECD, and would discuss the issue with her G20 counterparts when they meet virtually next week.
The US in January had already refrained from imposing threatened tariffs on US$1.3 billion in imports of French Champagne, cosmetics, handbags and other goods in retaliation for France’s digital tax, but said it could still impose them if the OECD talks did not result in a global solution.
US Trade Representative Katherine Tai (戴琪) last week said the same applied to US tariffs threatened against goods from Austria, India, Italy, Spain, Turkey and the UK in retaliation for their respective digital services taxes.
The Office of the US Trade Representative investigations into the taxes adopted by the six countries found that they discriminate against US technology companies and are inconsistent with international tax norms.
Taiwan’s foreign exchange reserves fell below the US$600 billion mark at the end of last month, with the central bank reporting a total of US$596.89 billion — a decline of US$8.6 billion from February — ending a three-month streak of increases. The central bank attributed the drop to a combination of factors such as outflows by foreign institutional investors, currency fluctuations and its own market interventions. “The large-scale outflows disrupted the balance of supply and demand in the foreign exchange market, prompting the central bank to intervene repeatedly by selling US dollars to stabilize the local currency,” Department of Foreign
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