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Ottawa Backs Down on Digital Tax Dispute Amid Pressure from Trump White House

Canada has reportedly agreed to delay its planned digital services tax (DST) following pressure from former U.S. President Donald Trump’s administration, according to a recent statement from the White House. The tax, which was originally slated to target tech giants like Amazon, Meta, and Google, had been a major sticking point in U.S.-Canada trade discussions. The White House claimed Canada “caved” to U.S. demands after months of negotiations, with Trump’s team arguing the tax unfairly targeted American firms. The Canadian government, however, framed the delay as a strategic move to preserve economic stability and avoid retaliatory tariffs. Critics within Canada argue that the government’s decision reflects a growing trend of yielding to U.S. economic influence, while others say the delay is pragmatic given ongoing global talks about a coordinated approach to taxing digital revenues. The issue remains contentious, and observers are watching closely to see whether Canada will revive th...
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U.S. Urges Canada to Collaborate on Curbing Imports of Forced-Labour Goods from China

 

The U.S. State Department’s top human rights official, Uzra Zeya, has called for Canadian cooperation in addressing the importation of goods made from forced Uyghur and Tibetan labor in China. Zeya emphasized the need for joint efforts to combat this pressing issue.

Key Points:

  1. Uyghur Forced Labor Prevention Act: The U.S. has taken a strong stance against forced labor by passing the Uyghur Forced Labor Prevention Act. This law presumes that any goods from China’s northwestern region of Xinjiang are made using coerced labor of Muslim Uyghurs. Importers must demonstrate that products are not produced under forced servitude, or shipments from the region are blocked.

  2. Canada’s Commitment: Under the United States-Mexico-Canada Agreement (USMCA), Canada pledged to bar imports manufactured with forced labor. However, as of December 2023, Ottawa had not halted any shipments of such goods entering the country since the agreement took effect in July 2020.

  3. Collaboration and Accountability: Zeya highlighted the importance of collaboration between the U.S. and Canada to prevent forced-labor products from entering North America. She expressed readiness to share experiences and best practices to tackle this issue effectively.

  4. Global Impact: Democratic Senator Jeff Merkley raised concerns that Chinese companies have redirected goods made in Xinjiang to Canada and Europe following the U.S. ban. The Global Slavery Index estimates that over $18.5 billion worth of goods imported annually into Canada are at risk of being produced with forced labor.

As the international community grapples with this human rights challenge, joint efforts between the U.S. and Canada can play a crucial role in ensuring the integrity of supply chains and protecting vulnerable workers.



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