France rejects a U.S. idea for companies to opt out of a proposed international tax reform, Finance Minister Bruno Le Maire said on Friday, urging Washington to negotiate in good faith.

Axar.az reports citing Reuters.

The Paris-based Organisation for Economic Cooperation and Development is in the midst of the biggest rewrite of international tax rules since the 1920s, aimed at updating them globally for the digital era.

But France and the United States are already on a collision course over the issue, with Washington threatening heavy duties on imports of champagne, cheeses and luxury handbags in retaliation for a separate French digital levy that would be replaced once any global OECD deal was struck.

U.S. Treasury Secretary Steven Mnuchin raised serious questions about the OECD proposals in a letter made public on Wednesday, jarring international officials by floating the idea of a “safe harbor regime”.

He said Washington had serious concerns about any moves to abandon certain current taxation structures such as arm’s-length transfer pricing, under which companies have to charge the market rate for cross-border transfers within in a group, and what is considered a taxable presence in a given country.