The global tech trade association ITI has responded to the Office of the U.S. Trade Representative’s (USTR) request for dispute settlement consultations under the United States-Mexico-Canada Agreement (USMCA) regarding Canada’s digital services tax.

ITI's Senior Director of Tax and Trade Policy, Megan Funkhouser, issued a statement commending the USTR's decision. “ITI commends USTR’s decision to request dispute settlement consultations under the USMCA on Canada’s digital services tax, which targets U.S. companies and attempts to ring-fence the digital economy," Funkhouser stated.

Funkhouser noted that despite repeated requests from stakeholders for Canada to forgo its controversial measure, it proceeded with implementing the tax. She expressed appreciation for the Biden Administration's efforts to support U.S. companies and workers through this action.

“As USTR pursues dispute settlement procedures under the USMCA, ITI urges the administration to keep in mind all tools at its disposal – including the Section 301 statute – as means of addressing this incredibly problematic measure and preventing further proliferation of measures that destabilize the international tax and trade environment,” Funkhouser added.