Washington has raised concerns about the trade implications of Ottawa’s online streaming bill, prompting a legal expert to warn that Canada could face hundreds of millions of dollars in retaliation if it becomes law. U.S. Trade Representative Catherine Tay expressed concern about the proposed legislation, known as Bill C-11, during talks earlier this month with International Trade Minister Mary Ng at the Canada-US Free Trade Commission ministerial meeting. of Mexico (CUSMA). Last month, federal Heritage Minister Pablo Rodriguez claimed the streaming bill, if passed, would generate at least $1 billion a year for Canada’s creative sector, including Indigenous programs. Ottawa’s public record of the July 8 meeting with Ng did not indicate that her American counterpart raised concerns about the bill However, the US government’s record of the meeting says that “Ambassador Tai expressed concern about … pending legislation in the Canadian Parliament that could affect digital streaming services.” Alice Hansen, a spokeswoman for Ng, said Wednesday: “Ambassador Tai tabled Bill C-11 and Minister Ng reiterated that this bill is non-discriminatory and consistent with Canada’s trade obligations.” Michael Geist, University of Ottawa Canada Research Chair in Internet Law, accused the Canadian government of ignoring the “commercial risks” associated with the streaming bill. “It’s clear the U.S. is paying attention,” Geist said. “By raising concerns before the bill has even been passed, there is an unmistakable message that Canada could face hundreds of millions of dollars in retaliation as a consequence of legislation that is already facing widespread opposition from Canadian digital-first creators,” he said. Trade lawyer Lawrence Herman, founder of Toronto-based Herman and Associates, said that while Washington has expressed concerns about the bill’s impact on American companies and is lobbying Ottawa, the U.S. is “far from retaliating.” “As the US government generally does, they will threaten all kinds of retaliation,” he said. “I don’t think they would have a strong background if they can’t show that the policies are discriminatory or targeted. “In the case of Canada, they want the streaming services to pay their share for access to the Canadian market. My assessment is (the bill) is not discriminatory.” Bill C-11 has been strongly opposed by digital-first creators and Conservative MPs who claim it would allow a future government to regulate people who post videos on YouTube – a charge the government denies. YouTube, in its submission to the Commons’ heritage committee, argued the bill would impose international trade barriers to the “exchange of cultural exports” on digital platforms, including Canadian creators, and set a “harmful” global precedent. The government this month launched a consultation to develop a model digital trade agreement. He said such a model agreement would help Canada address emerging technology issues and build on existing free trade agreements, including CUSMA, the North American Free Trade Agreement known as the USMCA across the border. Digital issues are also on the table in ongoing talks with the UK over a free trade deal. The Office of the US Trade Representative had not yet responded to a request for comment on Wednesday. This report by The Canadian Press was first published on July 28, 2022.
