WASHINGTON – The U.S. Trade Representative, Katherine Tai, is urging her Canadian counterpart to reconsider plans for a digital services tax and to allow American home shopping across the border. Tai and Canada’s International Trade Minister, Mary Ng, held a one-on-one meeting in Mexico during the two-day meetings in Cancun, which are concluding today.
The annual gathering provides an opportunity for all three countries to assess their progress under the U.S.-Mexico-Canada Agreement. According to a U.S. statement on Thursday’s meeting, Tai emphasized Canada’s commitment under the agreement to permit American home shopping television channels like QVC.
Tai also reiterated the long-standing concerns of the United States regarding the digital tax, which specifically targets foreign companies that generate revenue from Canadian users’ engagement, content, or data.
Unless an ongoing international initiative to establish a multilateral tax regime succeeds before then, the three percent levy is scheduled to take effect in January.
