US Seeks Dispute Talks on Canada’s Digital Services Tax (1)

The US has requested dispute settlement consultations with Canada over the northern country’s digital services tax, arguing the levy is unfair to American firms and violates a continental trade deal.

The consultations mark the first step toward a potential challenge under the deal known as the US-Mexico-Canada Agreement. If the countries can’t resolve the matter through talks within 75 days, the US may request a dispute settlement panel to examine it and issue a binding decision.

“The United States opposes unilateral digital service taxes that discriminate against US companies,” Trade Representative Katherine Tai said in a statement Friday.

The tax ...