The battle over a digital services tax has been the subject of Law Bytes podcast episodes for several years as the Canadian government signalled its intent to move ahead with one even as US officials warned of risks of trade retaliation if they did so outside of an international framework. With the DST now in effect, what does trade law have to say and how might the US respond? Meredith Lilly is a full Professor and Simon Reisman Chair in International Economic Policy at Carleton University’s Norman Paterson School of International Affairs. She joins me on the Law Bytes podcast to discuss the current digital trade policy tensions, what our agreements say about complaints and retaliation, as well as explain why a U.S. response on at least the DST seems likely.
Post Tagged with: "Trade"
Know When to Fold Em: The Big Risk Behind Canada’s Digital Services Tax Bet
The Globe and Mail runs my opinion piece on Canada’s digital services tax today. I open by noting that the Canadian government’s efforts to regulate big tech companies sometimes feels like a series of high-stakes poker matches in which the government foolishly bets that readily apparent risks can be ignored. That approach has proven costly: the plan to regulate internet streaming services is now mired in multiple legal challenges in court, while news links on Facebook and Instagram have been blocked in Canada for nearly a year in response to the Online News Act.
The latest high-risk strategy involves the implementation of a digital services tax, which could lead to billions in tariff retaliation targeting some of Canada’s most important economic sectors.
The Law Bytes Podcast, Episode 154: The House is Back – A Preview of Canadian Digital Policy as Parliament Resumes
The House of Commons and Senate return from a lengthy break this week and will likely run until late June with the occasional week or two off. Digital policy may not attract top line attention, but it has emerged as one of the government’s most active issues. This week’s Law Bytes podcast provides a preview of the upcoming session, looking at what may lie ahead for issues such as telecom policy, privacy reform, Bills C-11 and C-18, copyright, and trade policy.
Data Rules in Modern Trade Agreements: The Video
Earlier this month, CIGI posted my essay contribution to its series on data governance in the digital age. Data Rules in Modern Trade Agreements: Toward Reconciling an Open Internet with Privacy and Security Safeguards focuses on the policy challenges associated with including data provisions in trade agreements such as the TPP and NAFTA. I also sat down with CIGI for a short video on the essay. It is embedded below.
Data Rules in Modern Trade Agreements: Toward Reconciling an Open Internet with Privacy and Security Safeguards
CIGI’s essay series on data governance in the digital age has shone a spotlight on the need for a national data strategy. My contribution notes that central to any data strategy will be some measure of data control. Given the implications for privacy, security and innovation policies, this includes some control over where data is stored and the conditions under which it is transferred across borders. Yet, despite the mounting data concerns, Canada may have already signed away much of its policy flexibility with respect to rules on both data localization and data transfers, severely restricting its ability to implement policy measures in the national interest.