The United Kingdom’s commercial deal does not include “discounts or concessions” for digital services tax, which was reported to have been part of the negotiations, according to a senior official in the UK. The tax on global technology companies has long been an insect with the United States.
The official also confirmed that the UK will get discounts in each of the main tariffs by 25 percent on cars, steel and aluminum, as well as a low -conflict share. The volume of other cuts and shares is still unclear.
The UK is also expected to reduce its customs duties on US exports to cars and agricultural products, but will only provide the concession to the United States, not for other commercial partners.
Trade experts have warned of these risks that raise legal questions about whether this deal is compatible with the “most preferred nation” base for the World Trade Organization, which requires the provisional concessions on an equal footing with all commercial partners.
This rule can be waived if two states are a bilateral commercial deal that covers “all trade to a large extent” that reduces definitions between the two partners. UK officials are expected to argue that providing discounts to the United States on a preference is legal, because they are part of a “broader deal” of measures.
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