Proposed online streaming bill could discriminate against American firms: U.S. Embassy | 24CA News

The United States Embassy in Ottawa says it has considerations that the federal Liberals’ controversial on-line streaming act might discriminate towards American corporations.

In a press release to The Canadian Press, an embassy spokesperson mentioned U.S. officers are holding consultations with companies about how Bill C-11 might have an effect on their operations.

“We have … concerns it could impact digital streaming services and discriminate against U.S. businesses,” Molly Sanchez Crowe mentioned within the assertion.

The invoice goals to replace Canada’s broadcasting regulation so it displays the arrival of on-line streaming platforms comparable to YouTube, Spotify and Netflix. If the invoice passes, such platforms can be required to contribute to the creation of Canadian content material and make it accessible to customers in Canada — or face steep penalties.

The proposed regulation has come below intense scrutiny amid accusations from corporations and critics who mentioned it left an excessive amount of room for presidency management over user-generated content material and social-media algorithms.

The chair of the Canadian Radio-television and Telecommunications Commission (CRTC), which might be given new enforcement powers below the invoice, disputed these considerations throughout a Senate committee listening to final month, although some lawmakers mentioned they have been nonetheless involved about vagueness within the invoice’s wording.

YouTube, which is owned by Google, has mentioned it isn’t involved about being regulated additional. But it has maintained that the invoice would interact in synthetic promotion of sure content material and provides the federal government management over what customers see.

Potential commerce dispute

Under the Canada-United States-Mexico Agreement on commerce, or CUSMA, a rustic can problem a regulation when it feels it’s being discriminated towards.

U.S. Trade Representative Katherine Tai has beforehand expressed concern concerning the proposed regulation, however has not mentioned whether or not her nation would launch a commerce dispute.

International Trade Minister Mary Ng has insisted that the web streaming act in is line with Canada’s commerce obligations.

Marc Froese, a political science professor at Burman University in Alberta, mentioned it is potential a dispute might be launched towards Canada.

“Is it inevitable? No,” he mentioned in an interview Tuesday.

He pointed to a cross-border dispute Canada confronted 25 years in the past over “split-run” magazines, or American magazines that have been bought in Canada with the identical content material however with Canadian promoting. The proportion of Canadian adverts they may embrace had already been strictly restricted for the reason that ’60s, and in 1994, the federal government added a hefty excise tax to the equation.

Bill awaiting last Senate vote

Ottawa noticed the coverage as a technique to forestall cultural swamping by the Americans, Froese mentioned.

But the U.S. disputed the coverage through the World Trade Organization and threatened retaliation below the then-North American Free Trade Agreement, or NAFTA.

“We played hardball. The Americans sued us,” Froese mentioned. “And we lost.”

Jean Chretien’s Liberal authorities was compelled to again down, although some restrictions on imported magazines remained. Since then, Froese mentioned Canada has discovered rather a lot about commerce disputes and cultural exemptions, and it has change into a number one person of dispute decision mechanisms on the worldwide stage.

“We’re not a babe in the woods when it comes to dealing with litigation. Canadians get afraid of that: ‘The Americans might sue us. They won’t like what we’re doing.’ Yeah, so what?” Froese mentioned.

Even so, the up to date broadcasting guidelines might be shielded from commerce violations by cultural exemptions written into commerce agreements, he mentioned.

Toronto-based commerce lawyer Lawrence Herman, of Herman & Associates, mentioned he does not suppose the invoice will face many extra hurdles.

“The Canadian government will do whatever is necessary to make sure that these measures are implemented in a perfectly legitimate way,” Herman mentioned. “To avoid any suggestion that our trade commitments are not right.”

The invoice handed within the House of Commons final June and is awaiting a last vote within the Senate.