"Group of 7" targeting the Internet giants tax

by **claud39** Sat Jul 20, 2019 1:08 pm

"Group of 7" targeting the Internet giants tax

19/07/2019

"Group of 7" targeting the Internet giants tax Image-2-1-696x455

BAGHDAD -

The finance ministers of the Group of Seven (G7) nations on Wednesday agreed to impose a tax on giant digital companies on the second day of their meeting in Chantilly near Paris, opening the door to a global deal by 2020.
The French presidency of the group, Italy, Canada, America, Japan and the United Kingdom concluded that finance ministers agreed on the need to meet the financial challenges posed by the digital economy.
"The ministers agreed that the imposition of a minimum effective tax would help ensure that these companies would pay their fair share of the tax.
The statement also pointed out that there is consensus on the possibility of imposing fees on companies in countries where there is no actual presence in them.
The group's ministers and governments agreed that Libra-style projects could have implications for monetary sovereignty and the functioning of the international monetary system.
The ministers warned of the risks posed by hypothetical currency projects such as the Libra announced by Facebook. The French presidency said that "the ministers and the rulers agreed to say that projects such as Liberra can have implications for the monetary sovereignty and the functioning of the international monetary system." The French presidency of the group said yesterday that the finance ministers of the Group of Seven agreed on the "need to move quickly" on the Facebook project «disturbing» Libra digital version of the currency ».
The plan by the largest social contact company to launch a vocal digital currency from regulatory officials, central banks and governments, saying it should respect anti-money laundering regulations and guarantee transaction security and user data. But there are also deeper concerns that the influence of large technology companies is increasingly penetrating into areas that were exclusive to governments, such as currency issuance.

https://www.almaalomah.com/2019/07/19/418725/

by **claud39** Sat Jul 20, 2019 1:16 pm

[size=49]On the sidelines of the G7 Finance, the future of the WTO worries[/size]

July 17, 2019

"Group of 7" targeting the Internet giants tax Image

Photo: Adrian Wyld Canadian Press Cecilia Malmström, European Commissioner for Trade

The future of the World Trade Organization (WTO), whose Dispute Settlement Body (DSB) could be paralyzed at the end of the year, raised on Tuesday many concerns at a conference the day before the opening of the G7 Finances de Chantilly (Oise).

"The organization is in a deep crisis. We must recognize this, "said EU Trade Commissioner Cecilia Malmström in a debate on the 75th anniversary of the Bretton Woods agreement ahead of the G7 finance ministers' meeting. "If the DSB is blocked, which will probably take place in December, at least temporarily, we will no longer have" oversight "of trade agreements, she continued, referring to the US refusal to approve the appointment of new judges to the DSB.

This body, often dubbed the Supreme Court of World Trade, could be paralyzed on December 11th. Due to planned departures, the Appellate Body will no longer have enough judges to function if the US blockage is maintained. "If we do not have any more rules, everyone can do what they want [...] and it will be very bad, especially for small and developing countries," said Malmström.

If we do not have any more rules, everyone will be able to do what he wants [...] and it will be very bad.
- Cecilia Malmström

The former International Monetary Fund's number two, Anne Krueger, also warned the international community of the risks of the deadlock at the WTO: "This mechanism is currently in jeopardy. It is practically useless, "she said. Now a professor of economics at Johns Hopkins University in Washington, Krueger has launched an "urgent" call for "the WTO to remain functional", also fearing that its paralysis will result in a world where every country could do what he wants without fear of sanctions. As of December 11, "all new disputes brought before the WTO may not be tried," she lamented in the midst of a trade war between the United States and China.

Also present at the conference, WTO Deputy Director General Alan Wolff, an American, did not deny these dangers, but he tried to reassure the audience by saying that the DSB will not go away. in December. "The crisis is not exactly what was announced for December 11th. It's not great, it's not positive, but the judges will continue to work on litigation already presented, "he said. The outgoing judges will continue to follow the cases they already have in their hands, he added, while implicitly admitting that this body will no longer have the capacity to deal with the new ones.

In the face of criticism of the WTO, particularly from the United States, French President Emmanuel Macron made an appeal last year for a reform of the organization which, for the time being, has not not found an echo on the Washington side. At the opening of the conference, the governor of the Banque de France, François Villeroy de Galhau, pleaded for a "new multilateralism" in particular "to improve the functioning of the WTO".

In her speech, Ms Malmström again called on China and the United States to roll up their sleeves to reform this organization which ensures compliance with international trade agreements. "Our international system is in crisis and I think we can fix it. But we need strong leadership, "she said. While waiting for Beijing and Washington to get to work, the EU has chosen to "create a circle of friends with countries that think the trade is positive," said Malmström, citing as an example the recent trade agreements signed by Brussels with Canada, Japan and Mercosur (Brazil, Argentina, Uruguay and Paraguay).

The DSB is responsible for resolving trade disputes, such as undue subsidies or unjustified regulatory barriers, which result in the restriction of market access in one or more Member States. The WTO, like almost all international institutions, is strongly criticized by US President Donald Trump , who far prefers bilateral negotiations to multilateral negotiations.

https://www.ledevoir.com/economie/558862/en-marge-du-g7-finances-l-avenir-de-l-omc-inquiete