US Deputy Trade Chief Raises Concerns To Canada About Digital Services Tax - USTR Office

WASHINGTON (Pakistan Point News / Sputnik - 13th January, 2022) US Deputy Trade Representative Jayme White met with his Canadian counterpart David Morrison and raised concerns over Canada's proposal to impose a digital service tax, the Office of the US Trade Representative (USTR) said.

Last month, the US Trade Representative said the United States will examine all possible options in case Canada adopts the digital service tax.

"Ambassador White expressed concern about Canada's proposed digital service tax," the Office of the US Trade Representative said in a press release on Wednesday.

Canada proposed imposing a 3 percent tax on revenue from big technology firms, including social media platforms, that gain profit from digital services that use data and content from Canadian users, according to media reports.

White and Morrison also discussed bilateral issues on steel trade, and White underscored the importance for Canada to fully meet its commitments under the US-Mexico-Canada Agreement (USCMA), especially its allocation of dairy tariff-tariff quotas, the release said.

Earlier this month, the USMCA agreed with the United States that Canada was breaching its obligations under the trade agreement by restricting the number of US dairy products allowed into the Canadian market.