The Canadian Minister of Finance announced today, Sunday, that the government has decided to officially cancel the digital services tax that was imposed on the revenues of major technology companies, in a move aimed at paving the way for the resumption of trade negotiations with the United States on July 21.

The minister stated in a press statement given a short while ago that the decision came after intensive consultations with American and European partners, clarifying that Ottawa seeks to remove the barriers that hindered progress in the talks over the past months.

He added: “We want to send a clear message that Canada is committed to working with our allies to build an open and fair trading system that serves the interests of our citizens and our economy,” pointing out that the anticipated resumption of negotiations will include sensitive issues such as tariffs on steel and aluminum, and data protection rules.

The government adopted last year a plan to impose a 3% tax on the revenues of major technology companies such as Amazon, Meta, and Google, which provoked strong objections from the administration of President Donald Trump, which described the measure as “discrimination against American companies.”

The cancellation step received cautious welcome from Washington, which viewed it as “a positive signal towards resolving current trade disputes,” while some opposition parties in Canada criticized the decision, considering it “a free concession of significant financial revenues that could have been invested in supporting social services.”