Title: U.S. Criticizes Canada’s Digital Policies Amid Trade Talks

WASHINGTON, D.C. — The U.S. government has expressed concerns that Canada’s digital policies are discriminatory and protectionist, potentially harming the interests of American businesses. This criticism centers on Canada’s Online News Act and Online Streaming Act, which the White House claims unfairly disadvantage U.S. tech companies and streaming services.

The situation is reminiscent of the trade tensions during President Donald Trump’s administration, where protectionist measures were a common theme. Trump has called for the repeal of these Canadian policies, likening them to the now-defunct Digital Services Tax (DST), which he insisted must be eliminated for U.S.-Canada trade negotiations to proceed this summer.

In response, Canadian Prime Minister Mark Carney instructed Revenue Canada not to collect the DST, a move that did not seem to improve relations. Mark Dalton, senior policy director of Technology and Innovation at R Street, cautioned against making concessions too early in negotiations. “Don’t, don’t, don’t show your cards ahead of time,” he said, emphasizing that yielding to demands prematurely could lead to further requests during discussions.

Despite recent concessions, including the suspension of the DST and the lifting of retaliatory tariffs, a comprehensive trade deal between Canada and the U.S. remains elusive. Dominic LeBlanc, Canada’s minister responsible for U.S. trade, described recent talks as “successful, positive, substantive,” noting that both sides engaged in more detailed discussions than in the past. He indicated that the focus would continue on reaching agreements that provide greater certainty in sectors like steel, aluminum, and energy.

LeBlanc highlighted that the Section 232 tariffs in these areas have posed significant challenges for Canada. However, he did not address the 35 percent tariffs on certain Canadian exports or the implications of the digital policies on broader trade negotiations.

The Online Streaming Act, known as Bill C-11, mandates streaming platforms such as Netflix, Spotify, and Amazon Prime to prioritize and financially support Canadian content. Meanwhile, Bill C-18, the Online News Act, requires companies like Google and Meta to compensate Canadian media for using links to their content. Google has complied, paying $100 million annually, while Meta has opted to block Canadian news content on its platforms.

The U.S. administration’s opposition to these policies stems from their perceived economic impact on American tech firms. Daniel Cochrane, a senior research associate at the Heritage Foundation, noted that while the Online News Act aims to support content creators, its implementation has raised concerns about fairness and transparency, particularly for smaller media outlets. He also pointed out broader free speech issues related to these policies.

Dalton characterized the Canadian policies as an attempt to bolster legacy industries that struggle to compete in the current market. As discussions continue, the future of U.S.-Canada trade relations remains uncertain, particularly regarding these contentious digital policies.