Wednesday was a taxing day for developing economies hoping to attract investment from the United Kingdom and grow domestic resources.
Parliament approved a tax treaty Wednesday with Senegal that will allow U.K. companies to pay a fraction of the developing country’s standard tax rate. The goal of the treaty is to promote foreign direct investment between the two countries, which currently exchange less than $3 million in annual investments.
According to the International Monetary Fund, such treaties have “mixed” results, and whether they actually increase investment over the long-term remains difficult to measure.