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What will the U.S. do if consultations with Canada fail to resolve the digital services tax dispute by November 13, 2024?
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Resolution / Starting Odds
Request dispute settlement panel • 25%
Impose tariffs • 25%
Seek WTO intervention • 25%
No action • 25%
Official announcements from the U.S. Trade Representative or USMCA documentation
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US Requests Trade Dispute Consultations with Canada Over Digital Services Tax
Aug 30, 2024, 06:08 PM
The United States has initiated trade dispute consultations with Canada over its newly enacted digital services tax. The U.S. Trade Representative, Katherine Tai, has taken this step under the United States-Mexico-Canada Agreement (USMCA), arguing that the tax is discriminatory and violates USMCA's non-discrimination obligations on Cross-Border Trade in Services and Investment. The Biden-Harris administration has labeled the tax as inconsistent with Ottawa's trade deal obligations. If the issue is not resolved within 75 days, the USTR may request a USMCA dispute settlement panel. Despite the U.S. move, Canadian government officials have expressed that they are neither concerned nor surprised by the development.
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Impose new tariffs • 25%
File a complaint with the WTO • 25%
Negotiate a settlement • 25%
No action taken • 25%
Yes • 50%
No • 50%
Yes • 50%
No • 50%
Yes • 50%
No • 50%
Yes • 50%
No • 50%
Retaliatory tariffs • 25%
Diplomatic negotiations • 25%
Appeal to international trade bodies • 25%
No significant response • 25%
Diplomatic Resolution • 25%
Retaliatory Measures by Canada • 25%
U.S. Withdraws Tariffs • 25%
No Resolution • 25%
Canada accepts tariffs • 25%
Dispute unresolved • 25%
U.S. imposes tariffs • 25%
Canada retaliates • 25%
Mutual agreement reached • 25%
No significant changes • 25%
Export taxes imposed • 25%
Critical minerals restricted • 25%
Alcohol imports barred • 25%
No significant action • 25%
Negotiate with U.S. • 25%
Impose retaliatory tariffs • 25%
Seek WTO intervention • 25%
Other • 25%