The U.S. requests dispute settlement consultations with Canada over its new digital services tax.

The U.S. has requested dispute settlement consultations with Canada over its new digital services tax, calling it discriminatory and inconsistent with Canada's North American trade deal obligations. Canada's 3% levy on large foreign digital services companies generating revenue from Canadian users, such as Alphabet, Amazon, and Meta, has drawn criticism from the U.S. Trade Representative Katherine Tai, who believes it discriminates against U.S. companies. If no resolution is reached within 75 days of consultations, the U.S. may request to convene a dispute settlement panel under the USMCA.

August 30, 2024
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