U.S. trade official raises concerns about Canada’s proposed digital services tax -Breaking
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© Reuters. WASHINGTON (Reuters] – Jayme White, Deputy U.S. Commerce Representative, voiced Washington’s concerns about Canada’s proposed digital service tax during talks with David Morrison on Wednesday, USTR stated in a statement.
White spoke to Morrison before the meeting of trade deputies in the U.S.Mexico–Canada (USMCA), trade agreement that was enacted 2020.
White stressed that Canada must fulfill its USMCA obligations, which include its allocation of milk tariff-rate and home-shopping quotas.
Washington indicated in December that Washington would review “all options” within its domestic and trade agreements if Canada moves forward with its tax proposal on corporations offering digital services. It did not give any details.
As part of a transition plan for multinational corporations like Alphabet, Inc.’s Google, and other highly-profitable companies such as Alphabet (NASDAQ) Inc., the United States ended its threats to impose tariffs on five European nations over their digital taxes in October. Facebook Inc (NASDAQ:).
Canada revealed the plan in April. It stated it would continue to exist until the major countries adopt a more coordinated tax approach for big digital companies.
Although the Organisation for Economic Cooperation and Development (OECD) has agreed to a common strategy to make sure that such businesses pay their fair share of taxes over time, a binding treaty has not yet been signed.
USTR reported that White and Morrison have agreed to continue their collaboration on various issues, as well as to keep in touch.
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