Joint statement from the American Chamber of Commerce in Canada, the Canadian Chamber of Commerce, and the U.S. Chamber of Commerce on Digital Services Tax

Regrettably, the Government of Canada appears to be moving forward with its plan to unilaterally impose a retroactive and discriminatory digital services tax (DST) in contravention of prevailing international tax principles. Doing so would not only discriminate against U.S. companies but also directly contravene Canada’s obligations under both the U.S.–Mexico–Canada Agreement (USMCA) and the World Trade Organization (WTO).

As a member of the OECD/G20 Inclusive Framework’s steering group and longtime proponent of multilateralism, Canada has repeatedly stated its hope that Pillar One would make Canada’s DST proposal unnecessary. But by continuing to advance this discriminatory legislation, Canada risks undermining the very multilateral solution that it claims to support.

The Government of Canada has undoubtedly followed how the U.S. Trade Representative investigated several substantially similar measures—including France’s DST—and found them unreasonable or discriminatory and burdensome or restrictive to U.S. commerce, and thus actionable under section 301(b) of the Trade Act of 1974. In both Canada and the United States, the livelihoods of our workers and the prosperity of our citizens depend on the North American trade and investment partnership. At such a sensitive time in the trade relationship, we hope Members of Parliament remain committed to multilateralism and the importance of a common approach to the North American marketplace.

About the Canadian Chamber of Commerce — The Future of Business Success

The Canadian Chamber of Commerce is Canada’s largest and most activated business network — representing 450 chambers of commerce and boards of trade and more than 200,000 business of all sizes, from all sectors of the economy and from every part of the country — to create the conditions for our collective success. The Canadian Chamber of Commerce is the undisputed champion and catalyst for the future of business success. From working with government on economy-friendly policy to providing services that inform commerce and enable trade, we give each of our members more of what they need to succeed: insight into markets, competitors and trends, influence over the decisions and policies that drive business success and impact on business and economic performance. 

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Contact 
Karl Oczkowski 
Senior Director, Corporate Communications and PR 
Canadian Chamber of Commerce 
613.238.4000 (2231) 
koczkowski@chamber.ca