Republican bill takes aim at Online Streaming Act and threatens retaliation
Global News
The legislation from U.S. Rep. Lloyd Smucker would launch a U.S. Trade Representative investigation into whether the Canadian law unfairly burdens American commerce.
A Republican bill introduced Thursday takes aim at Canada’s Online Streaming Act and threatens retaliatory measures for the “discriminatory” policy, including additional tariffs and even changes to the North American free trade agreement.
The legislation from U.S. Rep. Lloyd Smucker of Pennsylvania would launch a U.S. Trade Representative investigation into whether the Canadian law unfairly burdens American commerce.
If that conclusion is reached, the bill orders “necessary retaliatory action” such as tariffs or “the suspension, withdrawal, or modification of trade agreement concessions or benefits to Canada under the United States-Mexico-Canada Agreement,” referred to in Canada as CUSMA.
“Digital trade plays a critical role in America’s economy, supporting high-paying jobs and exporting American values,” Smucker said in a statement.
“Canada’s unfair policies stack the deck against U.S. companies, creators, and workers. This bill would protect American creators and companies while permitting mutually beneficial competition and innovation.”
The statement includes supportive quotes from leaders of the Motion Picture Association and other U.S. digital media and communications groups.
The Online Streaming Act was passed in 2023 and would empower the Canadian Radio-television and Telecommunications Commission (CRTC) to force large foreign platforms like Netflix and Amazon to pay a portion of their annual Canadian revenues into funds devoted to producing Canadian content.
The policy has yet to be implemented while the CRTC seeks to finalize an updated definition of Canadian content, which is being challenged in court.
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