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Canada's Deputy Prime Minister and Minister of Finance Chrystia Freeland speaks to journalists on Parliament Hill.
Expect a ‘big fight’ over digital service tax
The US ambassador has once again warned Canada that it should expect consequences if it proceeds with a plan to impose a digital service tax on the tech giants. David Cohen, in response to an audience question at a Canadian Club luncheon in Ottawa, signaled that it could get nasty.
“That will be an area of contention unless it is resolved," he said. “There’s a place where we’re either going to have to have agreement, or we’re going to have a big fight.”
Finance Minister Chrystia Freeland surprised observers, and her friends in the United States, when Canada refused to agree with other countries to delay adopting such a tax at a meeting of the OECD this summer, complaining that it had waited long enough.
The tax would impose a 3% levy on big tech firms — many of them American — that earn revenue from Canadian customers without paying tax in the country. It is scheduled to kick in on Jan. 1.
On Wednesday, Freeland said that after a recent trip to Washington, she was “cautiously optimistic” that she would reach a deal with the Americans and avoid a showdown.
Neither side would benefit from a high-profile dispute over the matter, so a face-saving compromise would be welcomed by both countries’ business communities, which have warned Freeland against forging ahead in the face of opposition from Washington and Silicon Valley. If a showdown has been averted, Freeland may reveal as much in her department’s Fall Economic Statement, due for release later this month.
US Ambassador to Canada addresses concerns over Trump indictment and political turmoil
David Cohen, the US ambassador to Canada, doesn't seem too worried about the indictment of former President Donald Trump affecting his job. But that's not to say that US politics aren't stirring up some commotion in Canada.
In conversation with Ian Bremmer on GZERO World, Cohen was questioned on how a potential Trump comeback could impact Canada, as well as the extent to which the US is exporting its political turmoil.
Canadian Ambassador to the US, Kirsten Hillman, chimed in, acknowledging that Canada has historically been sensitive to US politics.
With an appetite for American media, Canadians are not immune to the ripple effects of political unrest south of the border. The two ambassadors agreed on one thing: political polarization is a menacing global issue that poses a significant threat to democracy.
Note: this interview appeared in an episode of GZERO World with Ian Bremmer on April 10, 2023, "What the US and Canada really want from each other"
What the US and Canada really want from each other
US President Joe Biden and Canadian Prime Minister Justin Trudeau finally had their COVID-delayed summit in March 2023. Biden and Trudeau clearly get along, and US-Canada ties are as strong as ever. Yet, some thorny issues still need to be ironed out.
The two neighbors see eye-to-eye on things like immigration or pushing back against China and Russia. But there's friction on Haiti and especially on the US Inflation Reduction Act, whose subsidies are wooing Canadian green biz south of the border.
On GZERO World, Ian Bremmer discusses the bilateral relationship with David Cohen, the US ambassador to Canada, and Kirsten Hillman, Canada's Ambassador in Washington. Then, Ian asks Canadian Defense Minister Anita Anand why she won't let her kids use TikTok (amongst other pressing national security questions).
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Podcast: How healthy is the US-Canada relationship?
Listen: On the GZERO World podcast, Ian Bremmer delves into the current status of the US-Canada relationship. In a nutshell: it's going well — definitely a lot better than under Donald Trump — but not all smooth sailing.
Ian interviews the ambassadors of both countries, David Cohen (US Ambassador to Canada) and Kirsten Hillman (Canadian Ambassador to the US), about what brings the two countries together and the challenges that trigger political division. He also chats with Anita Anand, Canada's defense minister, about a variety of national security challenges, from Chinese spy balloons to ... TikTok.
Subscribe to the GZERO World Podcast on Apple Podcasts, Spotify, Stitcher, or your preferred podcast platform, to receive new episodes as soon as they're published.- Will US-Canada border deal mean riskier future for migrants? ›
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- What the US and Canada really want from each other - GZERO Media ›
Is the US exporting its toxic politics to Canada?
David Cohen, the US ambassador to Canada, doesn't think the indictment of former President Donald Trump will affect his job. But that doesn't mean that US politics in general are not having ripple effects on its northern neighbor, he tells Ian Bremmer on GZERO World.
Ian presses Cohen on two things related to the indictment: First, how the return of Trump might affect the relationship with Canada. Second, the extent to which the US is exporting its political divisions.
Canadian Ambassador to the US Kirsten Hillman agrees that, as Ian puts it, Canada sneezes when the US catches a cold. Indeed, Canadians consume a lot of American media, although in Quebec they also consume a lot of French media.
The two ambassadors agree: Political polarization is a global phenomenon — and a serious threat to democracy.
Watch the full interview with Ambassadors Cohen and Hillman on the latest episode of GZERO World with Ian Bremmer, airing on public television in the US. Check local listings.