Finance Ministers’ Reply to Mnuchin

Here is the reply to U.S. Treas. Secretary Mnuchin from France, Italy, Spain and the UK. It speaks of good faith bargaining over the construction of a fair and balanced multilateral solution—familiar themes of this work to be sure. But it also hints that a recalibration (read: weaker approach) might be underway. The letter speaks of a “phased approach” that initially focuses on “automated digital services”. I didn't take note of it at the time but here is how the OECD defined automated digital services in its January statement:

businesses that provide automated and standardised digital services to a large and global customer or user base. These are businesses that, in general, are able to provide digital services remotely to customers in markets using little or no local infrastructure

I am not sure that is a meaningful definition. As for a phased approach, this is the first I am hearing of it but it’s admittedly hard to keep up with the OECD.

The Ministers conclude with their commitment to collaboration and helpfully point out that unity among allied countries “cannot be achieved through threats and sanctions.” We shall see!