New Fee for Streaming Companies Benefits Canada while Hurting Americans: US

American streaming companies are facing criticism from the United States over a new Canadian fee that they believe favors Canadian interests at the expense of U.S. companies.

This week, the Canadian Radio-television and Telecommunications Commission mandated that foreign streaming companies like Netflix and Spotify allocate five percent of their Canadian revenues towards supporting local news and Canadian content.

Members of the U.S. Congress and trade organizations have raised concerns about this requirement, arguing that it discriminates against American companies.

Some groups are considering potential retaliatory actions in response to this mandate.

The U.S. Embassy in Ottawa is closely monitoring the developments surrounding the Online Streaming Act. This new fee was introduced as part of the regulatory process to enforce Liberal government legislation.

“The United States values Canada’s audiovisual and news industries, but the Online Streaming Act seems to unfairly target U.S. companies in order to benefit large Canadian companies,” a spokesperson stated.

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“We urge Canada to consider feedback from U.S. stakeholders as they implement this legislation.”

The bill, passed in Parliament just over a year ago, aims to create a fairer landscape between tech giants and traditional broadcasters who already invest significantly in Canadian content.

It is estimated that this new fee will contribute around $200 million annually to Canada’s broadcasting system.

Tiffany Smith, vice-president of the National Foreign Trade Council in America, argues that the Canadian regulator is overlooking the substantial investments made by U.S. production companies in Canada, including technology transfer and educational support for Canadian cultural industries.

Now, U.S. companies are being asked to further finance initiatives in a foreign country, one that is a close ally and trade partner, according to Ms. Smith.

“This represents a new paradigm where foreign companies are being asked to support programs that have traditionally been funded by the Canadian government,” she remarked.

Under the Canada-U.S.-Mexico trade agreement, there are provisions that allow the U.S. to take retaliatory measures and seek compensation if desired, Ms. Smith mentioned.

“As for specific actions by any government, I cannot comment on that,” she added.

Trade Minister Mary Ng has consistently affirmed that the bill complies with trade regulations throughout the legislative and regulatory processes.

A representative from the U.S. Trade Representative’s office stated that they are reviewing the regulations and will continue discussions with Canadian counterparts.