U.S. business groups warn CRTC’s CanCon rules could worsen trade conflict

By Canadian Press on January 21, 2025.

OTTAWA — Groups representing U.S. businesses and big tech companies are warning the CRTC its moves to modernize Canadian content rules could worsen trade relations with the United States.

They say the CRTC’s measures to implement the Online Streaming Act, which updated broadcasting laws to capture online platforms, could invite retaliation from the U.S.

Those warnings — found in documents filed as part of a CRTC proceeding on a new definition of Canadian content — come as U.S. President Donald Trump threatens to impose 25 per cent tariffs on Canada, possibly as soon as Feb. 1.

The U.S. Chamber of Commerce is taking aim at an earlier decision by the CRTC under the Online Streaming Act to require big foreign streaming companies to contribute money toward the creation of Canadian content.

It warns that now is “not the time” for Canada to “invite retaliation” on trade from the Trump administration.

It says the Online Streaming Act is adding to “mounting trade frictions” and is likely to trigger retaliation under the Canada-U.S.-Mexico Agreement.

The National Foreign Trade Council, whose board of directors includes Google, Meta and Amazon, says the CRTC’s regulatory modernization plan may contravene CUSMA.

It says that while CUSMA has an exception for Canadian cultural industries, the deal allows the United States to respond with measures that would have an equivalent commercial effect.

“It is critical that the CRTC avoid these unintended consequences that could invite retaliation, particularly given the incoming administration’s objective of addressing unfair trading practices,” the group said.

This report by The Canadian Press was first published June 21, 2024.

Anja Karadeglija, The Canadian Press