The purpose of the double taxation agreement is to increase legal certainty and ensure fair trade in digital goods across the Atlantic.
The start of negotiations on the new agreement was announced on Friday (March 6). The cooperation aims to establish a system of consumer protection in the digital environment, increase legal certainty for digitally-enabled businesses (e.g. clarifying the legality of electronic signatures, contracts and invoices), and ensure fair digital trade protected from protectionist practices in relation to data or digital technologies. This is reported by euobserver.com.
A joint statement issued Thursday by the Canadian and EU trade commissioners said, “The double taxation agreement will create a comprehensive, forward-looking framework for digital trade that will increase legal certainty for businesses, enhance consumer protection in digital transactions and promote an open, free and fair online environment.”
This potential digital cooperation marks another step toward strengthening ties between Canada and the European bloc amid the United States’ hostility toward both sides.
In the digital sphere, the EU has clashed with U.S. tech giants over competition and taxation, while the U.S. has clashed with social media platforms over hate speech and misinformation.
