U.S. concerned Ottawa’s online streaming bill could impact trade with Canada – National

Washington has raised considerations concerning the commerce implications of Ottawa’s online-streaming invoice, prompting a authorized knowledgeable to warn that Canada might face a whole lot of hundreds of thousands of {dollars} of retaliatory tariffs if it turns into legislation.

U.S. Commerce Consultant Katherine Tai expressed disquiet concerning the proposed laws, often known as 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 net-streaming invoice, which has handed the Home of Commons and is now within the Senate, would pressure American-owned platforms, together with YouTube, Netflix and Amazon’s Prime Video, to advertise Canadian TV, films, 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 not less than $1 billion a 12 months 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 considerations concerning 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 might impression 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 therapy and is according to Canada’s commerce obligations.”

Michael Geist, the College of Ottawa’s Canada Analysis Chair in web legislation, 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 considerations earlier than the invoice even passes, there’s an unmistakable sign that Canada might face a whole lot of hundreds of thousands of {dollars} of retaliatory tariffs as a consequence of laws that already faces widespread opposition from Canadian digital-first creators,” he stated.

Toronto-based commerce lawyer Lawrence Herman, founding father of Herman and Associates, stated although Washington is elevating considerations concerning the invoice’s impact on American companies and making use of strain on Ottawa, the U.S. is “a great distance from retaliation.”

“Because the American authorities typically does, they may threaten all types of retaliatory measures,” he stated. “I don’t suppose they’d have a powerful 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) will not be discriminatory.”

Invoice C-11 has been sharply opposed by digital-first creators and Conservative MPs who declare it will permit a future authorities to control folks 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” world 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 deal with rising expertise points and construct on current free commerce agreements, together with CUSMA, the North American free commerce settlement often known as USMCA on the opposite facet of the border.

Digital points are additionally on the desk in ongoing talks with the U.Okay. on a free-trade deal.

The Workplace of the U.S. Commerce Consultant had not but responded to a request for touch upon Wednesday.