The trade dispute between Canada and the United States extends beyond traditional goods like dairy and car parts to include the representation of Canadian content on American streaming services like Netflix. The Globe and Mail reported that U.S. negotiators requested Canada to eliminate the obligation for American streaming companies to promote Canadian content, including French-language content. Prime Minister Mark Carney emphasized the government’s refusal to compromise on Canadian sovereignty, the protection of the French language, and cultural preservation after trade talks broke down.
Canadian broadcasting regulations have historically mandated the promotion and support of Canadian content, dating back to the Broadcasting Act of 1991. The rise of streaming platforms like Netflix and Spotify in Canada raised concerns about the promotion of Canadian content on digital platforms. In response, the government introduced the Online Streaming Act in 2022 to ensure online streamers contribute to Canadian content creation.
Despite opposition from American streaming companies, the legislation became law in April 2023. However, ongoing disputes over the contributions required from streaming companies have led to legal challenges and regulatory adjustments. The Canadian Radio-television and Telecommunications Commission (CRTC) mandated that online streaming services with revenues exceeding $25 million allocate five percent of their Canadian revenues to support Canadian broadcasting.
In a recent development, the CRTC announced an increase in the contribution requirement to 15 percent, drawing criticism from the Motion Picture Association (MPA). The MPA condemned the decision as a trade violation, leading to government intervention to reconsider the levy. The government also signaled its intention to eliminate the contribution requirement and replace it with taxpayer funding, sparking debate within the cultural sector.
While financial considerations are at the forefront of the dispute, the Online Streaming Act also focuses on enhancing access to Canadian content on streaming platforms. Legal expert Michael Geist noted the government’s willingness to adjust payment requirements while emphasizing the regulation of cultural distribution and promotion. The legislation’s impact on Canadian culture and the broader trade implications continue to be subjects of contention between Canada and the United States.