Trading Experts Doubt UK-US Trade Deal will Take Place
Some experts from the trade industry have raised doubts against the trade deal agreed to between the US and UK. The experts were of the view that while the digital services tax of Britain is still holding the field therefore no matter how beneficial it may sound but the trade deal won’t serve any purpose.
It is confirmed that the traditional friends UK and the USA have summed up the fourth round of negotiation. Soon after the news came into limelight experts of trade started to step in and outrightly rejected the mutual understanding between the two countries. However, so far there is no agreement which has been executed between the US and UK and there is a likelihood that the US will still try not to enter into any trade agreement with the UK because it fears that still, UK has kept in place its digital services tax, which is not acceptable to the US. There is a genuine apprehension that any further talks will bear no fruits and the negotiation is going to fail very soon.
Britain’s digital services tax is applicable upon social media websites as well as online retail marketing which, under the tax rules, are levied upon tax @ 2% of the entire revenue which these social media and retail marketing websites generate from the consumers residing in the UK. The fear of the US is that if it enters into an agreement of trade with the UK then the problem is that world-renowned social media applications such as Twitter and Facebook will end up paying huge piles of monies to the UK Treasury which is not acceptable to the US in any circumstances. Therefore though both countries conducted negotiations through four different rounds, however, still no agreement has arrived at between the parties. US is awaiting that if UK waives off this tax then there are chances to join hands with UK.
On the other hand, Mr. Sam Low, an adviser on the panel of Centre for European Reform, stated that the tax is not acceptable to Trump Administration as it sees the tax as being an indirect attack towards companies that are based in the US.