Cooperation in the Pacific Rim by Jakob Polacsek, World Economic Forum (CC BY-NC-SA 2.0) https://www.flickr.com/photos/worldeconomicforum/48179628441
A Tale of Two Readouts: U.S. Escalates Trade Concerns With Canadian Digital Policy as Canada Seeks To Downplay the Issue
Canadian International Trade Minister Mary Ng and U.S. Trade Representative Katherine Tai met yesterday to discuss Canada-U.S. Trade issues and concerns regarding Canada’s digital policy – most notably a proposed digital sales tax and Bills C-11 and C-18 – continue to mount. The U.S. raised digital policy concern over the summer, specifically citing Bill C-11 with a reference to “pending legislation in the Canadian Parliament that could impact digital streaming services.” The latest readout suggests that the concerns are growing, as the U.S. now cites both Bills C-11 and C-18 by raising “pending legislation in the Canadian Parliament that could impact digital streaming services and online news sharing and discriminate against U.S. businesses.”
The first three posts in this series on Bill C-11 have focused on the risks of regulating user content, the risks to Canadian creators, and the risks of increased consumer costs and less competition. Today’s post identifies another risk with the bill: the prospect of a trade challenge under the CUSMA that could lead to billions on tariff retaliation that target some of Canada’s most important economic sectors. The possibility of a U.S. trade battle over the bill is no idle speculation even if downplayed this week by an official from Global Affairs. This summer, U.S. Trade Representative Katherine Tai raised the issue directly with Canadian Minister of International Trade Mary Ng. While the Canadian readout of the meeting notably excluded any reference to the issue, it was cited in the U.S. readout of the meeting:
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.
The Canadian Government Makes its Choice: Implementation of Copyright Term Extension Without Mitigating Against the Harms
The Canadian government plans to extend the term of copyright from the international standard of life of the author plus 50 years to life plus 70 years without mitigation measures that would have reduced the harms and burden of the extension. The Budget Implementation Act, a 443 page bill that adopts the omnibus approach the government had pledged to reject, was posted late yesterday by Finance Minister Chrystia Freeland’s department and could be tabled in the House of Commons as early as today. Page 328 of the bill features the shoehorned amendments to the Copyright Act, including an extension of the term of copyright. While the government is not making the change retroactive (meaning works currently in the public domain stay there), no one seriously expected that to happen. What many had hoped – based on the government’s own committee recommendations and copyright consultation – was to introduce mitigation measures to reduce the economic cost and cultural harm that comes from term extension. Instead, Freeland, Prime Minister Justin Trudeau, Innovation, Science and Industry Minister François-Philippe Champagne, and Canadian Heritage Minister Pablo Rodriguez have chosen to reject the recommendations of students, teachers, universities, librarians, IP experts, and their own Justice Minister.
The Harm from Budget 2022’s Hidden Copyright Term Extension, Part Three: “It Does Not Put Money in the Pockets of Most Creators”
The inclusion of copyright term extension in Budget 2022 – a commitment to implement was buried in an annex to the budget – will cause enormous harm to access to Canadian culture and history for a generation. My previous posts in the series examined the incredible array of authors and political figures that helped shape Canada for decades who will have their works locked out of the public domain. The response from supporters of the policy is typically to ignore the economic evidence and reality that copyright already protects works for 50 years *after* the death of the creator, by relying on claims that term extension will benefit creators.
Yet consider the comments of Bryan Adams, one of Canada’s best known artists. In a 2018 submission to the Standing Committee on Canadian Heritage, Adams foresaw the likelihood of term extension and issued a warning: