The government will introduce the Digital Safety Act later today, with the headline being a ban on social media for those under 16. I’ve posted extensively on why a social media ban is an ineffective and harmful policy that raises privacy concerns for tens of millions of Canadians by mandating age verification. Yet beyond bad policy, the forthcoming bill may also become the source of the next Canada-U.S. digital policy collision. The Canadian pattern of struggling with U.S. trade pressure on digital issues is well known, starting with the Digital Services Tax that the government rescinded last summer to the recent move to reverse the CRTC’s Online Streaming Act ruling. But what has not been discussed is that a ban might be the next source of friction. The U.S. just told UK officials in an official submission that it stands against broad social media bans, strongly opposes regulations that require or create conditions that compel platforms to collect government-issued IDs, and that it is skeptical of using technical age estimation for 13-to 16-year-olds. In other words, it is opposed to much of what the Canadian government reportedly has planned in Bill C-34.
Post Tagged with: "Trade"
Heads They Win, Tails We Lose: What Lies Behind the U.S. Trade Battle For Control over Data
My Globe and Mail op-ed begins by noting that the Trump administration’s emphasis on tariffs continues to garner headlines, but a more consequential trade battle over data control is playing out with far less public attention. Last week, the U.S. released its annual report on trade barriers and for the first time, Canada was listed alongside dozens of other countries for seeking greater control over its own data. The message is clear: When countries enact laws that restrict where data is stored and who can access that information, the U.S. treats them as a trade threat.
The Online Streaming Act in Jeopardy: U.S. Takes Aim at the CUSMA Cultural Exemption With Threats of Bill C-11 Retaliation
From the moment it was first introduced as Bill C-10 in the fall of 2020, it was readily apparent that mandated payments by foreign streaming services to support Canadian content would face a trade backlash with the U.S., with the real prospect of trade retaliation. In fact, I wrote about the issue days after the bill was tabled, warning that an uneven playing field for benefits – foreign companies required to contribute but banned from benefiting – was a risky approach. Those warnings were dismissed by the government, cultural lobby groups, and supporters of the bill who assured critics that Canada’s cultural exemption under CUSMA provided a shield against U.S. retaliation.
It took years for Bill C-10 – later Bill C-11 – to become law as the Online Streaming Act, but now the bill has come due. Weeks after the U.S. Trade Representative (USTR) specifically identified Canadian digital laws as a target in CUSMA renegotiations, House Republicans introduced the Protecting American Streaming and Innovation Act, a bill that would mandate an investigation into the Canadian law and open the door not only to trade retaliation but also to a change in how the cultural exemption is applied.
The Law Bytes Podcast, Episode 226: Richard Gold on Why Canada Should Target U.S. Patents To Help Counter Tariff Trade Pressure
The trade battle between Canada and the U.S. took a brief break last week as hours before the Trump tariffs were scheduled to take effect, President Trump agreed to a 30 day delay in return for various border measures. That brought a sigh of relief but no real sense that the issue is over. Indeed, quite the opposite – as future battles over tariffs and other measures appear very likely. Professor Richard Gold of McGill University’s Faculty of Law specializes in intellectual property. On last week’s Law Bytes episode, I referenced his proposal to consider suspending patents in key sectors such as pharmaceuticals and AI as a mechanism to counter US pressure. He joins me on the Law Bytes podcast to expand on his idea, explaining why there would be benefits for Canadian firms and frustration on U.S. firms that could spark domestic support to counter potential measures targeting Canada.
The Law Bytes Podcast, Episode 210: Meredith Lilly on the Trade Risks Behind Canada’s Digital Services Tax and Mandated Streaming Payments
The battle over a digital services tax has been the subject of Law Bytes podcast episodes for several years as the Canadian government signalled its intent to move ahead with one even as US officials warned of risks of trade retaliation if they did so outside of an international framework. With the DST now in effect, what does trade law have to say and how might the US respond? Meredith Lilly is a full Professor and Simon Reisman Chair in International Economic Policy at Carleton University’s Norman Paterson School of International Affairs. She joins me on the Law Bytes podcast to discuss the current digital trade policy tensions, what our agreements say about complaints and retaliation, as well as explain why a U.S. response on at least the DST seems likely.
Recent Posts
The Law to Be Named Later: Bill C-34 Punts 50 Key Decisions to Cabinet and a Digital Safety Commission That Does Not Yet Exist 
Everything All At Once: Bill C-34 Combines Platform Duties, a Kids’ Social Media Ban, AI Chatbot Regulation, and a Powerful Digital Safety Commission Into a Risky “Trust Us” Bet 
Yet Another Trade Battle Brewing: Why a Kids’ Social Media Ban Could Put Canada on a Collision Course With the U.S. 
Everything You Wanted to Know About a Kids’ Social Media Ban (But Were Rightly Afraid to Ask): A FAQ on Age Verification and Mandated ID for Everyone 
Bill C-22’s Clause-by-Clause Problem: The Government Includes Agencies Seeking Lawful Access Powers But Blocks the Privacy Commissioner’s Return
