AmCham Canada Statement on the United States' Request for USMCA Dispute Settlement Consultations on Canada's Digital Services Tax

“The American Chamber of Commerce in Canada (AmCham Canada) has long expressed serious concern with Canada’s move to implement a unilateral digital services tax (DST). The tax discriminates against U.S. companies and directly contravenes Canada’s obligations under both the U.S.–Mexico–Canada Agreement (USMCA) and the World Trade Organization (WTO).

Today’s announcement from U.S. Trade Representative Katherine Tai represents the first step by the United States in challenging Canada’s DST as a violation under USMCA. We cannot afford to put Canada’s trading relationship with the United States at risk. We call on the government of Canada to immediately suspend the application of the DST and eliminate the retroactivity provision in the tax.”