US and Canada Near Trade Deal Over Digital Policies

The United States Trade Representative and the government of Prime Minister Mark Carney are nearing a trade agreement designed to reduce tariffs and resolve trade irritants. US Trade Representative Jamieson Greer stated the deal will secure comprehensive market access for American goods, economic security commitments, and digital trade alignment.

To facilitate the agreement, the Carney government has already dropped a digital services tax and modified revenue contribution requirements for streaming platforms. These concessions follow USTR criticism of Canadian policies, including the Online News Act, the Online Streaming Act, and efforts to develop sovereign cloud-computing infrastructure.

The focus on digital trade alignment has drawn criticism from Canadian policymakers and investors. Jim Balsillie and the Canadian SHIELD Institute expressed concerns that the agreement may undermine Canada's digital sovereignty and its capacity to regulate data and technology companies domestically.