Bill C-11, the government’s online streaming legislation, has caught the attention of the U.S. government, which raised it as a concern during a recent meeting between U.S. Trade Representative Katherine Tai and Canadian Minister of International Trade Mary Ng. The issue is cited in the U.S. readout of the meeting, though the Canadian readout of the same meeting notably excludes any reference to the issue. The readout specifically states that “Ambassador Tai expressed concern about Canada’s proposed digital service tax and pending legislation in the Canadian Parliament that could impact digital streaming services.” The reference to concerns with a digital services tax has been raised before, but the inclusion of Bill C-11 is new. The concerns may reflect Canadian Heritage Minister Pablo Rodriguez’s decision to regulate user generated content, an approach not found in any other country in the world.
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Canada Threatens to Delay Copyright Term Extension in Response to U.S. Electronic Vehicle Tax Credit Plan
Trade tensions between Canada and the U.S. have been rising in recent weeks with the U.S. Build Back Better Act proposing to create a tax credit for electronic vehicles that Canadian officials argue violates the Canada-U.S.-Mexico Agreement. The U.S. plan is said to be the equivalent of a 34 percent tariff on Canadian assembled electric vehicles. While trade disputes are not particularly noteworthy, the Canadian government response certainly is. Last week, Finance Minister Chrystia Freeland and International Trade Minister Mary Ng wrote to eight U.S. Senators with the following warning:
Beyond possible retaliatory actions, if the U.S. proceeds with the tax credit provisions as drafted, we would see this as a significant change in the balance of concessions agreed to in the USMCA. As such, we would consider the possible suspension of USMCA concessions of importance to the U.S. in return. Those concessions could include suspending USMCA dairy tariff-rate quotas and delaying the implementation of USMCA copyright changes.