US Pushes Canada to Drop Digital Tax, Weaken News Law in Trade Talks
In ongoing trade negotiations, the United States has reportedly demanded Canada scrap its digital services tax and dilute its online news legislation, a move seen as favoring tech giants Google and Facebook.
Key Takeaways
- The US wants Canada to eliminate its 3% tax on large digital firms’ revenue.
- It also seeks to weaken Bill C-18, which mandates payments to Canadian news publishers.
- Canada defends the measures as necessary for fair taxation and media support.
- The outcome could significantly impact Canada’s economy and news industry.
Details of the US Demands
According to a The Globe and Mail report, US negotiators have tabled conditions during bilateral trade talks. The primary demands are for Canada to abolish its Digital Services Tax (DST) and soften the Online News Act, known as Bill C-18.
The DST imposes a 3% levy on the revenue of large digital companies operating in Canada. Bill C-18 would compel these platforms to compensate Canadian news organizations for content shared on their services.
Clashing Positions
The US argues the digital tax is discriminatory and the news law is unfair. Canadian officials maintain both policies are crucial to ensure tech firms contribute fairly to public coffers and to sustain the domestic news sector, which has faced severe financial strain.
Negotiations are continuing, with no certainty that Canada will concede to the American pressure.
Broader Trade Context
These digital policy demands arise as the two nations work to resolve several trade disputes, including long-standing disagreements over softwood lumber and dairy products. The resolution of these talks will shape critical aspects of the Canadian economy and its digital sovereignty.
