The United States and the United Kingdom have initiated discussions aimed at establishing an Economic Prosperity Deal to address ongoing trade issues. The proposed agreement includes a focus on "Increasing Digital Trade," highlighting the importance of digital commerce in future negotiations.
In conjunction with this announcement, the Office of the United States Trade Representative (USTR) issued a Fact Sheet outlining objectives for digital trade agreements. A key point raised was the intention to address concerns over the UK's digital services tax. The USTR stated: “The United States is disappointed that the UK was unwilling to agree to fully address its discriminatory Digital Services Tax (DST). It is discriminatory, unjustified, and should be removed promptly.”
Jonathan McHale, Vice President for Digital Trade at CCIA, expressed support for including digital trade provisions in the potential deal. He remarked, “We welcome the inclusion of digital trade provisions to be negotiated as part of the U.S-U.K. Economic Prosperity Deal. Strong rules for digital trade will bolster the complementary strengths of both economies in setting a standard for fair market access and expanding growth and innovation.” McHale emphasized that removing the UK's DST, which he claims has unfairly taxed U.S. providers billions of dollars, should be prioritized.