A high-tech industry coalition in the United States is urging President Joe Biden to take a hard line against CanadaB次元官网网址檚 approach to digital services.

The group says the proposed digital services tax unfairly targets U.S. companies and is offside with international efforts to establish a global standard.

In a letter to Biden, they also complain about two controversial federal bills: the Online Streaming Act, known as Bill C-11, and the Online B次元官网网址 Act, or Bill C-18.

They warn C-11, which is meant to protect Canadian content providers, could backfire and ultimately increase costs to consumers.

And they fear the Online B次元官网网址 Act, which would compensate Canadian news organizations and broadcasters, could violate the U.S.-Mexico-Canada Agreement.

Biden is meeting Prime Minister Justin Trudeau later this week as part of his first visit to Canada since taking over the White House in 2021.

B次元官网网址淲e are concerned that Canada is pursuing a number of problematic proposals and actions that could significantly limit the ability of U.S. companies to export their goods and services and fairly compete in the Canadian market,B次元官网网址� the letter reads.

B次元官网网址淚t is critical for the United States to hold Canada accountable to its USMCA commitments to ensure the continued success of this important agreement.B次元官网网址�

The letter is signed by 10 different associations in the digital services space, including the Computer and Communications Industry Association, the Information Technology Industry Council and the U.S. Chamber of Commerce.

First and foremost in their sights is CanadaB次元官网网址檚 B次元官网网址渄iscriminatory and retroactiveB次元官网网址� digital services tax, which the group estimates would collect US$4 billion over five years, primarily from U.S. companies.

The tax, designed to ensure tech giants pay their fair share of taxes in countries where they earn revenue without a physical presence, would only take effect next year if a new multilateral tax framework doesnB次元官网网址檛 take shape by then.

Canada has endorsed that so-called B次元官网网址渋nclusive framework,B次元官网网址� established under the auspices of the G20 and the Organization for Economic Co-operation and Development.

B次元官网网址淐anadaB次元官网网址檚 pursuit of a DST would set a harmful precedent for other inclusive framework participants to adopt similarly targeted taxes on U.S. digital services.B次元官网网址�

Precedent elsewhere is also a concern with the Online Streaming Act, which the associations say smacks of an effort to impose on the internet a regulatory scheme designed for the B次元官网网址渢raditionally restricted world of broadcasting.B次元官网网址�

If passed, the bill B次元官网网址渃ould have disastrous consequences for content production and distribution and could inspire other countries to implement similar content-preference schemes.B次元官网网址�

And they say the Online B次元官网网址 Act, which is already fuelling mounting tensions between the federal government and tech giants like Google and Meta, appears to exclude digital companies from outside the U.S., a violation of the terms of North AmericaB次元官网网址檚 trilateral trade agreement.

B次元官网网址淚t is critical for the United States government to hold Canada to its trade commitments and to underscore the negative global precedent that would be set if Canada implements these measures in their current form.B次元官网网址�

B次元官网网址擩ames McCarten, The Canadian Press