‘EXPLORING ALL OPTIONS’ — The Biden administration is pleading with Canada not to press ahead with a digital services tax as the OECD postpones action on a key element of an international tax accord. — MICHAEL PLOWGIAN, a top Treasury official, told lawmakers Wednesday: “Treasury is engaged with Canada at all levels, including Secretary [Janet] Yellen, to dissuade them from implementing a discriminatory DST.” “This is a critical issue,” he said. “Implementation of a DST by Canada would seriously undermine the Pillar One negotiations.” “With respect to Canada, we are exploring all options, and we would like to work with Congress to address that issue,” said Plowgian, deputy assistant secretary for international tax affairs. BRIAN FALER has the details for POLITICO Pro s. — Freeland's response: Playbook asked Deputy PM CHRYSTIA FREELAND's office for their take on the American position. KATHERINE CUPLINSKAS, a senior communications adviser and press secretary to the minister, sent us this statement: “Canada's priority and preference has always been a multilateral agreement. Canada strongly supports international efforts to end the corporate tax race to the bottom and to ensure that all corporations, including the world’s largest corporations, pay their fair share. The Canadian government has been clear for several years that it would move forward with its own Digital Services Tax if a global agreement is not reached. And we are committed to protecting Canada’s national economic interest.” CRISIS AVERTED, MAYBE — The dockworkers' union that had threatened strike action as early as Saturday at British Columbia ports ended the threat of weekend picketing in a dramatic reversal on Wednesday. Earlier in the day, Prime Minister JUSTIN TRUDEAU had talked over the "situation" in B.C. ports with his Incident Response Group, an ad-hoc band of Cabinet ministers who convene during urgent situations. At the time, the union was still planning to revive its picketing. The Cabmins in the meeting were Deputy PM CHRYSTIA FREELAND, Tourism Minister RANDY BOISSONNAULT, Justice Minister DAVID LAMETTI, Labor Minister SEAMUS O'REGAN, Transport Minister OMAR ALGHABRA, Government House Leader MARK HOLLAND, Intergovernmental Affairs Minister DOMINIC LEBLANC, Agriculture Minister MARIE-CLAUDE BIBEAU, Innovation Minister FRANÇOIS-PHILIPPE CHAMPAGNE, and Pacific Economic Development Minister HARJIT SAJJAN. A readout of the conversation said the PM directed ministers and senior officials to "pursue all available options to ensure the stability of our supply chains and to protect Canadian jobs and our economy." By the end of the day, the conversation appeared to be moot — at least for now. — Why they met: It wasn't clear from the outside earlier Wednesday what the plan was for thousands of dock workers in B.C. who were off, then back on, the job. On Tuesday, the ILWU bargaining council rejected a tentative agreement the union had struck with the BC Maritime Employers Association on July 13 — the terms of which had been suggested by a federal mediator. The members didn't vote on the proposal. Just like that, they were back on the picket line. — Well, not for long: First thing Wednesday, the Canada Industrial Relations Board ordered union members back to work, ruling the strike "unlawful" because the union hadn't given 72-hours’ notice. "This strike is illegal," tweeted Labor Minister O'Regan, who only one week ago thought dock strikes were a thing of the past. (The minister's use of the i-word prompted Saskatchewan Premier SCOTT MOE to refer to the stoppage as an "illegal blockade.") The ILWU intended to appeal the ruling, arguing no notice was required, but abided by it anyway — and then gave its 72 hours' notice. But by the end of the day, they'd revoked that notice. O'Regan's office said the minister hoped the union would put the tentative July 13 agreement to a vote of the full membership. Trudeau also spoke to B.C. Premier DAVID EBY about the issue — and, as an aside in a readout, they also traded views about affordable housing. THE LABOR VIEW — Playbook got on the horn with Canadian Labour Congress President BEA BRUSKE, whose umbrella group of unions includes the ILWU. Bruske answered our rapid-fire questions on what was transpiring at the ports. We spoke ahead of Wednesday night’s developments. Did the CIRB ruling surprise you? It did surprise me, because in my experience you don't have a deal until it's ratified by the members. What did you make of Minister O'Regan's role in getting both sides to agree on a deal? Minister O'Regan has been very much on the ground, pushing the parties to work and to get to a settlement. We know that he's been very much involved in this, has rolled up his sleeves and has been very engaged. The union members didn't get a chance to vote on the proposal. What do you say to critics who think they should've had that opportunity? The members elect their bargaining council. The members also outlined to the bargaining council what their priorities were, and what they needed to achieve at the bargaining table. Internal union politics are always going to be what they are. I'm sure there's many difficult conversations happening, because just like any other organization, there are a variety of views within a workplace, as there are within a union. — Meanwhile, in Washington: POLITICO's OLIVIA OLANDER reports for Pro s: "More than two dozen senators affirmed their support for a ‘fair and equitable’ bargaining agreement in a Wednesday letter to the UPS CEO and Teamsters president — but also said they wouldn't intervene in any strike action, as a July 31 deadline to make a deal looms." This sounds familiar: "The shipping giant and union face a deadline at the end of this month to reach an agreement for about 340,000 workers, or risk a strike that could have major impacts on the U.S. supply chain." — Still in Washington, via our colleagues: "U.S. President JOE BIDEN and United Auto Workers leader SHAWN FAIN met Wednesday at the White House, a union official and a White House aide told POLITICO, as labor contract discussions are beginning between the powerful union and the Big Three automakers."
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