The problem is that for many (smaller) countries, it&#x27;s a race to the bottom. They want to attract companies that are huge compared to their &quot;native&quot; GDP or production capabilities, collect a little bit of tax from them, and maybe earn a whole lot more by creating (or maintaining) a financial services industry in their country.<p>It&#x27;s hard to stop those countries from doing so, in the current framework of international trade and business. I don&#x27;t know if a treaty limiting this kind of stuff is in the cards for the near future. And if it is, I&#x27;m not sure it would be signed or ratified by financial safe haven countries like Luxemburg, the Seychelles, Monaco or Belize.