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Pakistan's Crackdown on Afghan Refugees: A Controversial Move

In recent weeks, Pakistan has intensified its efforts to arrest Afghan citizens residing in the country without proper documentation. This move has sparked significant controversy, with the Afghan Embassy in Islamabad accusing Pakistan of attempting to expel all Afghan refugees from its territory. The Afghan Embassy issued a strongly worded statement, condemning the short timeframe given by Pakistani authorities and the unilateral nature of their decision. The embassy claimed that Afghan nationals in Islamabad and Rawalpindi have been subjected to arrests, searches, and orders to leave the cities and relocate to other parts of Pakistan. Pakistan's Foreign Ministry has dismissed these allegations, stating that the authorities are merely facilitating conditions for the swift return of Afghans to their home country. The ministry emphasized that Pakistan has long threatened to deport Afghans living in the country illegally. Prime Minister Shehbaz Sharif recently approved a March 31 dea...

Trump's America First Trade Policy Targets Canada's Digital Services Tax

In a move that could further strain trade relations between the U.S. and Canada, President Donald Trump has signed an executive order targeting Canada's digital services tax (DST). The DST, enacted by the Liberal government last June, imposes a three percent tax on revenues over $20 million generated in Canada by foreign-based digital giants with incomes of at least $1.1 billion.

Trump's executive order directs the U.S. Treasury and Commerce departments, along with the United States Trade Representative, to investigate whether foreign countries are subjecting American citizens or corporations to discriminatory or extraterritorial taxes. This move is part of Trump's America First Trade Policy, which aims to ensure that America's trading relationships benefit American workers, manufacturers, farmers, ranchers, entrepreneurs, and businesses.

Business groups on both sides of the border have opposed the DST, and the Biden administration had previously requested dispute settlement consultations with Canada under the Canada-United States-Mexico Agreement (CUSMA). However, the consultation period ended in November without further action. Trump's executive order could reignite the dispute, with potential tariffs or other unilateral actions against Canada.

The DST is one of the principal frictions in the trading relationship between the U.S. and Canada, and experts believe that Trump's administration is likely to take action until the tax is withdrawn or an agreement is reached. The Canadian Chamber of Commerce has urged the Canadian government to scrap the tax in response to Trump's executive order.

As the investigation proceeds, the future of Canada's digital services tax remains uncertain, and the potential for increased tariffs or other trade measures looms large.

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