WASHINGTON, DC, AUGUST 30, 2024 – The Canadian American Business Council (CABC) supports the U.S. request for consultation with the Government of Canada under the USMCA regarding the unilateral Digital Service Tax (DST).
Today’s announcement by U.S. Trade Representative Katherine Tai underscores the critical need for careful consideration of the potential impact of the DST.
We have repeatedly highlighted the issues with the DST’s retroactive and unilateral approach. We strongly encourage the Canadian government to suspend the tax implementation and eliminate its retroactive provisions. Doing so would demonstrate a commitment to our shared trade obligations under the USMCA and help prevent further strain on our vital cross-border economic ties.
Canadian businesses and consumers are already under immense pressure. The DST’s one-sided nature exacerbates costs and amplifies uncertainty, with potential retaliatory actions from the U.S. government. As the consultation proceeds, it is our hope that both governments can engage in constructive dialogue to address the concerns raised by the U.S.
The CABC remains committed to supporting efforts that ensure our economic relationship continues to thrive. We urge both sides to seek a resolution that promotes innovation and competitiveness in the digital economy while respecting the principles of fair trade and ensuring regulatory harmony for businesses on both sides of the border.
Beth Burke, CEO
Canadian American Business Council
About the CABC: Established in 1987, the Council is the leading non-profit, non-partisan, issues-oriented organization dedicated to fostering dialogue between the public and private sectors in Canada the US. Members are key business leaders and stakeholders from both sides of the border ranging from entrepreneurs to best name brands in the world. Collectively, CABC members employ about two million people and have annual revenues of close to $1.5 trillion. For more information about the CABC and its leadership team, please visit our Who We Are section.
