logo
Should Canada target Big Tech in trade war negotiations with the U.S.?

Should Canada target Big Tech in trade war negotiations with the U.S.?

Calgary Herald30-04-2025

Article content
Canada passed its own Digital Services Tax (DST) last year, rather than wait for an international agreement to establish common taxation standards that had been in the works. The DST aims to force big tech companies to pay their fair share of taxes and imposes a three per cent levy on digital services revenue over $20 million retroactive to 2022. Canada's move prompted an outcry from the U.S., which threatened retaliatory tariffs on 'discriminatory' taxes on American companies.
Article content
Canada's DST seemed destined for the chopping block earlier this year as Ottawa sought to stave off Trump's tariff threats, with Trump singling out Canada and France for implementing digital services taxes in a February executive order.
Article content
Article content
'These non-reciprocal taxes cost America's firms over US$2 billion per year. America has no such thing, and only America should be allowed to tax American firms,' the order proclaimed.
Article content
But the calculus may have now changed.
Article content
With the trade war in full swing, Ottawa is unlikely to back down on its DST plans for the first payments supposed to take effect this summer, said Michael Geist, the University of Ottawa's Canada research chair in internet and e-commerce law.
Article content
'Policies designed to ensure that tech companies pay their fair share have been raised for years — and will now no doubt continue to be raised,' he said.
Article content
Not only could increasing taxation of big tech be added to Canada's trade negotiation arsenal, but concerns about the lack of U.S. reliability raises bigger questions about big tech's role here, Karanicolas said.
Article content
Article content
Article content
'The time for naiveté is over. (The U.S.) could pull the rug out from under us if they chose to,' he said, pointing to Canada's reliance on U.S.-owned digital infrastructure, from cloud computing to enterprise software, as well as the dominance of U.S.-owned digital media platforms which could influence Canadian public opinion.
Article content
That might have seemed far-fetched when dealing with a close ally, but America's new hostile stance means the possibility can't be discounted.
Article content
'We've seen now the willingness of the U.S. government to abuse the powerful position that American tech platforms have,' he said, pointing to allegations that the Trump administration pressured Ukraine to sign over its critical minerals by threatening the country's access to internet satellite provider Starlink. Meanwhile, Meta has said that it is prepared to ask the Trump administration to safeguard the U.S. tech sector against tough-on-tech rules from jurisdictions such as the EU.
Article content
Preventative policies could come in the form of better rules that safeguard Canadian ownership over vital digital industries, such as national ownership requirements for social media companies, to supporting decentralized social media like Mastodon and BlueSky to dilute the power of big tech platforms, Karanicolas said.
Article content
Federal regulations prohibit American broadcasters or telecoms firms from buying out Canadian ones. Yet Canada has allowed American companies to 'completely dominate' information ecosystems relied on by Canadians.
Article content
'We should be thinking about these as critical national interests that we need to maintain Canadian sovereignty over,' he said.
Article content
Canada should make it as easy as possible for Canadians to switch to technological alternatives, according to Keldon Bester, executive director of the Canadian Anti-Monopoly Project (CAMP). And where there are no alternatives, robust competition and privacy rules, such as the EU's DMA, can help ensure that dominant tech firms play by Canadian rules and keep them accountable to public oversight, he said.
Article content
Article content
But actions targeting U.S. tech firms run the risk of triggering retaliation from the White House and could further strain Canada-U.S. ties.
Article content
'We have found out that it doesn't matter what you do, you will be subject to the whims of the (Trump) administration,' Bester said. Stricter rules from Ottawa doesn't mean that Canada is placing a bullseye on any country or set of companies, but sending a message that Canada is a sovereign nation.
Article content
'You don't get a free pass just because you push us around,' he said.
Article content
Chios Carmody, a professor and director of the Canada-United States Law Institute at the University of Western Ontario said earlier this year that Ottawa must stand firm on the DST and not 'cave in to U.S. demands.'
Article content
Article content
At the same time, he cautioned that big tech isn't 'necessarily a foe' and has a role to play in building a strong Canadian tech industry.
Article content
Whatever action Ottawa decides should prioritize Canada's economic and national security interests, Karanicolas said.
Article content
'We can't cower in fear due to the threat of retaliation. Any steps that we take shouldn't just be targeted towards American platforms. But taking these steps … to try to impose better accountability and transparency … is something that's in Canada's interest.'
Article content

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

"Extremely sad and painful": MoS Home Nityanad Rai expresses grief over Ahmedabad plane crash
"Extremely sad and painful": MoS Home Nityanad Rai expresses grief over Ahmedabad plane crash

Canada Standard

timean hour ago

  • Canada Standard

"Extremely sad and painful": MoS Home Nityanad Rai expresses grief over Ahmedabad plane crash

New Delhi [India], June 12 (ANI): Union Minister of State (MoS) for Home Affairs, Nityanand Rai, on Thursday expressed grief over the plane crash in Gujarat's Ahmedabad, involving an Air India flight en route to Gatwick in London. In a post on X, Rai said, 'The news of the plane crash in Ahmedabad, Gujarat is extremely sad and painful. May God give strength to the families who have lost their loved ones to bear this sorrow.' BJP leader Kavinder Gupta termed the accident 'massive' and prayed for the recovery of the injured. 'We can only pray to God that everyone is safe. This is a massive accident. We can say anything only after we get official information,' Gupta told ANI. Prime Minister Narendra Modi expressed deep sorrow over the tragic incident in Ahmedabad, terming it 'heartbreaking beyond words.' In a post on X, PM Modi conveyed his condolences and assured assistance to those affected. According to the post, PM Modi has been closely monitoring the situation and is in constant communication with state authorities. 'The tragedy in Ahmedabad has stunned and saddened us. It is heartbreaking beyond words. In this sad hour, my thoughts are with everyone affected by it. Have been in touch with Ministers and authorities who are working to assist those affected,' the Prime Minister wrote. Confirming the incident, Air India said that among the 242 passengers, 169 were Indians, 53 Britishers, seven portugese and one Canadian national. 'Air India confirms that flight AI171, from Ahmedabad to London Gatwick, was involved in an accident today after take-off. The flight, which departed from Ahmedabad at 1338 hours, was carrying 242 passengers and crew members on board the Boeing 787-8 aircraft. Of these, 169 are Indian nationals, 53 are British nationals, 1 Canadian national and 7 Portuguese nationals. The injured are being taken to the nearest hospitals. We have also set up a dedicated passenger hotline number, 1800 5691 444, to provide more information. Air India is giving its full cooperation to the authorities investigating this incident,' the airline said. According to officials, the aircraft was under the command of Captain Sumeet Sabharwal, an LTC with 8,200 hours of flying experience. He was assisted by First Officer Clive Kundar, who had 1,100 hours of flying experience. As per Air Traffic Control (ATC), the aircraft departed from Runway 23 at 1339 IST (0809 UTC). It gave a mayday call to ATC, but thereafter, no response was given by the aircraft to the calls made by ATC. 'Aircraft immediately after departure from Runway 23, fell on the ground outside the airport perimeter. Heavy black smoke was seen coming from the accident site,' the official added. (ANI)

DEEGAN: 'Buy Canadian' push should include ads
DEEGAN: 'Buy Canadian' push should include ads

Toronto Sun

timean hour ago

  • Toronto Sun

DEEGAN: 'Buy Canadian' push should include ads

Earmark 25% of federal ad budget for Canadian media Canadian Prime Minister Mark Carney speaks as he attends a tour of the Fort York Armoury in Toronto on June 9, 2025 in Toronto, Canada. Prime Minister Carney has pledged to meet NATO's 2% spending pledge this year.U.S. President Donald Trump's repeated attacks on Canada's economy and sovereignty have changed the nature of our bilateral relationship. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account You can feel it when the crowd joins in the singing of O Canada at Rogers Place when the Edmonton Oilers play, and you can see it in the grocery aisle when a customer picks Hawkins Cheezies over Cheetos. For many years, the federal government has recognized the importance of 'Buy Canadian,' but it tends to be somewhat limited to strategic industries like shipbuilding: Irving in Halifax, Seaspan in Vancouver, and Davie in L é vis. Trump's threats are a clear and present reminder why our domestic shipbuilding capacity is critically important not just for job creation, innovation and technological advancement and economic growth – especially in coastal regions – but for safeguarding our sovereignty. For generations – all the way back to the founding of the Halifax Gazette in 1752 – government advertising had been an important source of revenue for news businesses. In recent years, this has waned considerably. For example, the federal government reports that during fiscal year 2022 to 2023, it spent more than $86 million on advertising. Of that, less than $1 million went to all print publications in the country combined. Where did the money go? Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. Largely to American tech giants like Google, Facebook/Instagram, Snapchat, Apple, and X. One of the most effective ways to sustain independent Canadian journalism would be for the government of Canada to set aside a minimum of 25% of its domestic advertising spend for trusted Canadian news brands. RECOMMENDED VIDEO This is working in other jurisdictions and across the political spectrum. A year ago, Ontario's Progressive Conservative Premier Doug Ford directed that 25% of his government's advertising spending would be set aside for news publications. This made an immediate and meaningful difference to many news titles. Five years ago, former New York City mayor Bill de Blasio, a Democrat, mandated that city agencies allocate at least 50% of their print and digital advertising to community and ethnic media. According to The Center for Community Media at CUNY, 'The impact of this policy cannot be overstated: In its first five years, it injected more than $72 million into the local community media sector. This helped critical information reach New Yorkers who rely on community media as their primary source of news, and added an important source of revenue for these outlets.' This advertisement has not loaded yet, but your article continues below. The not-for-profit Rebuild Local News found that advertising set-asides, done right, have the following benefits: They can provide substantial revenue to local news organizations and help community journalism thrive. It is money the government is already spending – not new money – so it does not require enlarging state or local budgets or raising taxes. Government messages can reach a full range of residents, including those who may not be using larger media. As advertising, it is payment for a service rendered, not a subsidy per se. RECOMMENDED VIDEO Advertising in community news helps government be more effective by reaching audiences through community and ethnic publications that are more trusted in their communities. This advertisement has not loaded yet, but your article continues below. Beyond providing an effective way for the government to reach the 81% of Canadians who read newspaper content in a brand safe manner, a federal set-aside would send an important signal to other orders of government and to the private sector about protecting Canada's digital sovereignty and sustaining independent commercially viable public interest journalism. During the recent federal election, the Liberal Party of Canada's platform vowed to 'Deploy a made-in-Canada procurement strategy that prioritizes, whenever possible, Canadian suppliers.' At the same time, it noted the importance of news media. The document stated, 'In this time of crisis, protecting Canada means protecting our culture, our journalism, our perspectives.' It continued, 'In a sea of American media and disinformation, we need Canadian voices more than ever.' Prime Minister Mark Carney can meet the moment and fulfill his campaign promise through a federal government advertising set-aside that would see a minimum of 25% of federal advertising spending invested in Canadian media. Ontario and New York have provided the playbook. Let's get on with it and get it done with dispatch and determination. – Paul Deegan is the president and chief executive officer of News Media Canada World Toronto Blue Jays World Toronto & GTA Celebrity

Canada's Couche-Tard says U.S. store divestment plan clears path for Seven & i deal
Canada's Couche-Tard says U.S. store divestment plan clears path for Seven & i deal

Edmonton Journal

time4 hours ago

  • Edmonton Journal

Canada's Couche-Tard says U.S. store divestment plan clears path for Seven & i deal

Article content Alimentation Couche-Tard Inc. said several potential buyers have made proposals to acquire convenience stores in the U.S. that overlap with Seven & i Holdings Co., showing progress toward a deal that could help the Canadian retailer win regulatory approval for its proposal to buy its Japanese rival. The two agreed earlier this year to discuss the potential divestment of more than 2,000 stores in the U.S. and seek out interested parties in order to address concerns by Seven & i over a merger being blocked by the U.S. Federal Trade Commission. Couche-Tard also pushed back against any parallels to the failed $24.6 billion merger of grocery chains Kroger Co. and Albertsons Cos.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store