Deal on cross-border tax needed to save economies ravaged by Covid-19, says OECD

Fears that poorest countries will be worst hit if a trade war erupts due to talks failing

Economies struggling with the costs of Covid-19 could face a double blow from escalating trade wars unless international talks to rewrite cross-border tax rules are successful, the OECD has warned.

The Paris-based organisation, which has been steering the talks, said governments would come under further financial pressure from retaliatory tariffs should governments fail to agree a global tax framework by an extended deadline of mid 2021.

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