International negotiations on new tax rules for the digital age will fail to conclude this year, raising the risk of a trans-Atlantic trade conflict and a proliferation of contentious national levies on global tech giants.

The Covid-19 pandemic and disagreements between the European Union (EU) and President Donald Trump's administration have hobbled years-long talks between more than 130 countries at the Organization for Economic Cooperation and Development (OECD).

Negotiators will present blueprints for a tax overhaul to a Group of 20 meeting later this week, marking progress on many technical issues but falling short on key elements such as what type of business activity will be included in the scope of new rules. The OECD now aims to conclude the process by mid-2021.