Minister of Economic Development, Minister of International Trade and Minister of Small Business and Export Promotion Mary Ng, right, looks on as United States Trade Representative Katherine Tai speaks during a joint news conference in Ottawa, Thursday, May 5, 2022. The United States is filing another formal dispute over what it considers Canada’s failure to live up to its trade obligations to American dairy farmers and producers.THE CANADIAN PRESS/Adrian Wyld

U.S. trade envoy presses Canada on digital services tax

America’s trade envoy is urging her Canadian counterpart to abandon plans for a digital services tax and to allow U.S. home shopping north of the border.

U.S. Trade Representative Katherine Tai and International Trade Minister Mary Ng met one-on-one in Mexico during two days of meetings in Cancun, which wrap up today.

The annual gathering is a chance for all three countries to take stock of their progress under the U.S.-Mexico-Canada Agreement.

A U.S. readout of Thursday’s meeting says Tai pressed Ng on Canada’s obligation under the deal to allow American home shopping television channels like QVC.

She also repeated long-standing U.S. concerns about the digital tax, which targets foreign companies that earn revenue from the engagement, content or data of Canadian users.

The three per cent levy would go into effect in January unless an ongoing international effort to establish a multilateral tax regime takes hold before then.