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The U.S. trade groups, warning about the Canadian services, the tax

WASHINGTON (Reuters) – More than a dozen U.S. trade groups and the U.S. Chamber of Commerce and industry on Friday urged the Home and administration block, with a French-style services, the load is represented by the Canadian Prime minister, Justin Trudeau, who will be in the October elections.

FILE PHOTO: A cyclist passes the U.S. and Canadian flags to be placed side-by-side, in the Eisenhower Executive Office Building next to the White House in Washington, d.c., March 8, 2016. The preparations have been under way for the official state visit of the prime Minister of Canada, Justin Trudeau, on Thursday. REUTERS/Kevin Lamarque

The groups said the tax would lead to the undermining of AMERICAN investment in Canada in the technology marketplace, and are threatening Canada’s compliance with the commitments made in the framework of the World Trade Organization, the North American Free Trade Agreement (NAFTA), and the United States-Mexico-Canada Agreement (USMCA).

“We strongly urge you to move fast with your Canadian counterpart to discourage them from going ahead with the proposal,” the groups wrote in a letter to the US Secretary of State, and Mike Pompeo, Dutch Minister of finance, Steven Mnuchin, the Minister of Trade of Wilbur Ross, the US trade representative Robert Lighthizer, and an economic adviser to the White House, and Larry Kudlow.

Trudeau’s Liberal party during the campaign suggested the services of the tax is similar to a French plan, which has led to criticism and the threat of violent rates in the United States of america.

France and the United States are still working on the differences over the tax, which officials in the u.s. say it unfairly targets AMERICAN companies such as Facebook (FB.(O), Google (GOOGL.O) and Amazon (AMZN.D).

The Liberal democrats called for it and digital companies, with a worldwide turnover of at least C$1 billion Canadian, with an annual turnover of more than C$40 million, subject to a 3% income tax on the income earned through the sale of online display advertising and the data from the user. The tax will come into effect on April 1, 2020.

He tries to form a minority government after the Liberals lost their majority in last month’s election.

“We are concerned that the scope of the proposal, design objectives, and would only impact U.S.-based companies, the Internet Association, the Entertainment Software Association and other trade groups have said.

“Regulations need to be updated for the digital age, but for the discriminatory taxes against U.S. companies is not the right approach,” she wrote in the letter.

The Canadian plan, it would undermine the new digital commerce measures included in the USMCA-trade agreement, which was signed by the leaders of Canada, the United States of america and Mexico for the last year, the groups said. The convention has been ratified by Mexico, but it has yet to be approved by the legislatures of both Canada and the United States of america.

Reporting by Andrea Shalal; Editing by Grant McCool

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