Eighteen U.S. Republicans call Canada’s Online Streaming Act discriminatory, pushing for repeal amid tense trade talks.
U.S. Pushback Over Canadian Streaming Rules
Eighteen Republican members of the U.S. Congress are calling on Canada to repeal its Online Streaming Act, a law requiring foreign streaming services to contribute 5% of their Canadian revenues to local content creation. They argue the policy unfairly targets American companies and should be dropped as part of ongoing trade negotiations.
Letter Targets Digital Policy in Trade Context
In a July 31 letter obtained by CBC News, the lawmakers urged U.S. Trade Representative Jamieson Greer, Commerce Secretary Howard Lutnick, and Treasury Secretary Scott Bessent to prioritise dismantling what they call “digital trade irritants.” They highlighted the U.S. streaming industry’s $70 billion USD video revenue and $14.3 billion USD music revenue in 2023 as proof of its economic importance.
Concerns Over Cross-Border Competition
The Republicans claim that the Canadian Radio-television and Telecommunications Commission’s (CRTC) rules disadvantage U.S. platforms while benefiting domestic creators. Many Canadian content funds exclude foreign streamers, meaning companies like Netflix or Disney+ contribute without direct access to subsidies. Critics say this could discourage investment and strain cross-border digital trade.
Ottawa’s Pattern of Digital Policy Reversals
The appeal comes weeks after Prime Minister Mark Carney’s government scrapped Canada’s digital services tax, a move prompted by pressure from U.S. President Donald Trump, who briefly halted trade talks over the issue. Analysts note a trend of reversing digital policies introduced under former prime minister Justin Trudeau, raising expectations that the Online Streaming Act could also be reconsidered.
Industry and Legal Perspectives
Michael Geist, Canada Research Chair in internet and e-commerce law at the University of Ottawa, says U.S. companies likely view the government’s recent reversals as an opening. He adds that the legislation’s strict Canadian content definitions can exclude even fully Canadian-produced projects if they don’t meet CRTC criteria, a point of contention for both foreign and domestic creators.
Uncertain Path Forward in Trade Talks
Canada-U.S. trade negotiations have yet to meet self-imposed deadlines, with tensions heightened by a 35% tariff imposed by Washington on goods deemed non-compliant with the Canada-U.S.-Mexico Agreement. Whether Ottawa will yield on the Online Streaming Act remains unclear, but observers warn that any policy change will have consequences for Canada’s cultural industries and its bargaining position at the trade table.
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