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Washington has raised issues in regards to the commerce implications of Ottawa’s online-streaming invoice, prompting a authorized skilled to warn that Canada might face lots of of tens of millions of {dollars} of retaliatory tariffs if it turns into regulation.
U.S. Commerce Consultant Katherine Tai expressed disquiet in regards to the proposed laws, often called Invoice C-11, throughout talks earlier this month with Worldwide Commerce Minister Mary Ng on the Canada-United States-Mexico Settlement (CUSMA) Free Commerce Fee ministerial assembly.
The web-streaming invoice, which has handed the Home of Commons and is now within the Senate, would drive American-owned platforms, together with YouTube, Netflix and Amazon’s Prime Video, to advertise Canadian TV, motion pictures, movies or music, and assist fund Canadian content material.
Final month, federal Heritage Minister Pablo Rodriguez claimed the online-streaming invoice, if handed, would generate no less than $1 billion a yr for Canada’s artistic sector, together with Indigenous applications.
Ottawa’s public report of the assembly on July 8 with Ng didn’t point out that her American counterpart raised issues in regards to the invoice
However the U.S. authorities’s report of the assembly says “Ambassador Tai expressed concern about … pending laws within the Canadian Parliament that would influence digital streaming providers.”
Alice Hansen, a spokeswoman for Ng, stated Wednesday: “Ambassador Tai raised Invoice C-11, and Minister Ng reiterated that this invoice doesn’t institute discriminatory remedy and is consistent with Canada’s commerce obligations.”
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Michael Geist, the College of Ottawa’s Canada Analysis Chair in web regulation, accused the Canadian authorities of ignoring the “commerce dangers” linked to its online-streaming invoice.
“It’s clear the U.S. is paying consideration,” Geist stated.
“By elevating issues earlier than the invoice even passes, there may be an unmistakable sign that Canada might face lots of of tens of millions of {dollars} of retaliatory tariffs as a consequence of laws that already faces widespread opposition from Canadian digital-first creators,” he stated.
#US raises commerce issues with Canada over #OnlineStreamingBill. #CDNPoli #OnlineStreaming
Toronto-based commerce lawyer Lawrence Herman, founding father of Herman and Associates, stated although Washington is elevating issues in regards to the invoice’s impact on American companies and making use of stress on Ottawa, the U.S. is “a great distance from retaliation.”
“Because the American authorities typically does, they are going to threaten all types of retaliatory measures,” he stated. “I don’t suppose they might have a robust case except they’ll present that the insurance policies are discriminatory or focused.
“In Canada’s case, they need streaming providers to pay their justifiable share for entry to the Canadian market. My evaluation is (the invoice) just isn’t discriminatory.”
Invoice C-11 has been sharply opposed by digital-first creators and Conservative MPs who declare it will permit a future authorities to manage individuals posting movies on YouTube — a cost the federal government denies.
YouTube, in its submission to the Commons heritage committee, argued the invoice would impose worldwide commerce obstacles to the “trade of cultural exports” on digital platforms, together with by Canadian creators, and set a “dangerous” international precedent.
The federal government this month launched a session on the event of a mannequin digital commerce settlement.
It stated such a mannequin settlement would assist Canada handle rising know-how points and construct on present free commerce agreements, together with CUSMA, the North American free commerce settlement often called USMCA on the opposite aspect of the border.
Digital points are additionally on the desk in ongoing talks with the U.Ok. on a free-trade deal.
The Workplace of the U.S. Commerce Consultant had not but responded to a request for touch upon Wednesday.
This report by The Canadian Press was first printed July 28, 2022.
