US To Terminate Trade Retaliation Case Against India After Global Tax Agreement

The US Trade Representative’s (USTR) office said on Wednesday it is moving to terminate its trade retaliation case against India after Washington and New Delhi agreed on a global tax deal transition arrangement that will withdraw India’s digital services tax.
USTR said the agreement between the US Treasury and India’s finance ministry applies the same terms agreed to with Austria, Britain, France, Italy, Spain and Turkey, but with a slightly later implementation date.
The pact follows an October agreement by 136 countries in principle to withdraw their digital services taxes as part of a sweeping global tax deal agreed on October 8 to adopt a 15% global minimum corporate tax and grant some taxing rights on large profitable companies to market countries.