US Embassy in Ottawa, Canada, expresses worry that the federal Liberals' contentious digital streaming plan may discriminate against US firms.
According to a report by Global News, US Embassy spokesperson Molly Sanchez Crowe told The Canadian Press that government officials are meeting with companies to discuss the potential effects of Bill C-11.
Apparently, they are worried that it could "impact digital streaming services and discriminate against US businesses."
'Too Much Power'
The purpose of this initiative is to bring Canadian broadcasting legislation into the modern era of internet streaming services like YouTube, Spotify, and Netflix. If the law is passed, these sites would be obligated to help fund the production of Canadian content and make it available to Canadian consumers.
Companies and others have warned that the new legislation gives the government too much power over user-generated material and social media algorithms, leading to a lot of attention being paid to it.
During a Senate committee meeting last month, the head of the Canadian Radio-television and Telecommunications Commission (CRTC), which would be granted additional enforcement powers under the bill, attempted to alleviate such fears. Several senators have voiced worries about the bill's ambiguity.
Google's YouTube has said that it is not worried about further regulation. Yet, it insists that the measure will artificially promote certain information and give the government influence over what people view.
Katherine Tai, the US Trade Representative, has voiced worry over the new bill but has not commented on whether or not the US would initiate a trade case.
Mary Ng, Canada's Minister of International Trade, has repeatedly emphasized that its stance on online streaming is consistent with its international commitments.
The House of Commons approved the legislation in June 2022 and is now awaiting a final vote in the Senate.
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Experts' Analysis
Prof. Marc Froese of Burman University in Alberta, who specializes in politics, has said that a challenge against Canada is a distinct possibility.
In an interview on Tuesday, Jan. 10, he mentioned a conflict between the US and Canada 25 years ago over "split-run" periodicals, in which American magazines were offered in Canada with the same content but with Canadian advertising.
Since the 1960s, they had been subject to severe limits on the proportion of Canadian advertisements they could contain; in 1994, the government added a substantial excise tax to the mix.
According to Froese, the policy was enacted by Ottawa as a means of protecting Canadian culture against American imperialism.
Attorney for international commerce in Toronto, Lawrence Herman of Herman & Associates, is certain that Bill C-11 will pass with few additional changes.
To ensure that these actions are carried out in an entirely legal manner, the Canadian government would do all it takes, Herman said. "To avoid any suggestion that our trade commitments are not right," he added.
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