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

Washington has raised issues in regards to the commerce implications of Ottawa’s online-streaming invoice, prompting a authorized skilled to warn that Canada may face a whole lot of thousands and thousands of {dollars} of retaliatory tariffs if it turns into regulation.

U.S. Commerce Consultant Katherine Tai expressed disquiet in regards to the proposed laws, generally known as Bill 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 power American-owned platforms, together with YouTube, Netflix and Amazon’s Prime Video, to advertise Canadian TV, motion pictures, movies or music, and assist fund Canadian content material.

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Final month, federal Heritage Minister Pablo Rodriguez claimed the online-streaming invoice, if handed, would generate at the least $1 billion a 12 months for Canada’s artistic sector, together with Indigenous applications.

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Ottawa’s public file of the assembly on July 8 with Ng didn’t point out that her American counterpart raised issues in regards to the invoice

However the U.S. authorities’s file of the assembly says “Ambassador Tai expressed concern about pending laws within the Canadian Parliament that would impression digital streaming providers.”

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Alice Hansen, a spokeswoman for Ng, mentioned Wednesday: “Ambassador Tai raised Invoice C-11, and Minister Ng reiterated that this invoice doesn’t institute discriminatory remedy and is according to Canada’s commerce obligations.”

Michael Geist, the College of Ottawa’s Canada Analysis Chair in web regulation, 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 mentioned.

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“By elevating issues earlier than the invoice even passes, there’s an unmistakable sign that Canada may face a whole lot of thousands and thousands of {dollars} of retaliatory tariffs as a consequence of laws that already faces widespread opposition from Canadian digital-first creators,” he mentioned.

Toronto-based commerce lawyer Lawrence Herman, founding father of Herman and Associates, mentioned although Washington is elevating issues in regards to the invoice’s impact on American corporations and making use of stress on Ottawa, the U.S. is “a good distance from retaliation.”

“Because the American authorities typically does, they may threaten every kind of retaliatory measures,” he mentioned. “I don’t suppose they’d have a robust case until they will 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) isn’t discriminatory.”

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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.

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YouTube, in its submission to the Commons heritage committee, argued the invoice would impose worldwide commerce boundaries to the “trade of cultural exports” on digital platforms, together with by Canadian creators, and set a “dangerous” world precedent.

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The federal government this month launched a session on the event of a mannequin digital commerce settlement.

It mentioned such a mannequin settlement would assist Canada deal with rising expertise points and construct on present free commerce agreements, together with CUSMA, the North American free commerce settlement generally 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.

© 2022 The Canadian Press

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