LILLEY: CRTC looks set to kill off trade talks with U.S.
· Toronto Sun
On Thursday, Canada’s broadcast regulator appears ready to throw a grenade into the already fraught world of Canada-US trade talks. The CRTC is set to unveil new rules on Canadian content and discoverability for streaming platforms.
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That would include everything from Canadian-based Crave or CBC’s Gem, but also American services from Apple Music to Netflix, Prime to Disney+.
CUSMA, the Canada-United States-Mexico Agreement, is supposed to be reviewed by July 1. That was already unlikely to happen and will be even less likely if the CRTC moves forward with these changes.
Under these new regulations, the streaming services could be forced to promote Canadian content or push the discoverability of Canadian content. It appears that the CRTC will stop short of requiring that music streaming services ensure that 35% of all music played will be Canadian, but Canadian content in both music and video will be required to be promoted.
Already an irritant, Carney is making it worse
The changes are being made under the Online Streaming Act, a law that already requires American streaming services to hand over 5% of their Canadian revenue, not profit but revenue, to the government to fund various programs. The Online Streaming Act is seen by the Americans as a trade irritant and this expansion of legal requirements for their firms to operate in Canada is likely to raise tensions rather than lower them.
Congressman Lloyd Smucker of Pennsylvania has already introduced legislation to have these measures deemed discriminatory and therefore subject to increased tariffs by the Americans. Under Section 301 of the Trade Act of 1974, the American President can impose tariffs for unfair trading practices.
The decision by most Canadian provinces to ban the sale of American alcohol is currently subject of an investigation of unfair trading practices and could result in additional tariffs under Section 301.
When it comes to trade talks between Ottawa and Washington, the Carney government appears to be going out of their way to ensure there is no progress.
Defence is yet another issue
These proposed changes to regulations come on the heels of the United States pressing pause on the Permanent Joint Board on Defense. This is a cross border organization that most Canadians have never heard of, but that dates back 86 years to a meeting between William Lyon Mackenzie King and Franklin Delano Roosevelt in 1940.
The Americans could be looking to push Carney to ensure that he follows through on the promise to purchase 88 F-35 jets rather than switch to the Swedish based Gripen fighter jet.
According to one source in Washington, the feeling in the American capital is that the anti-Americanism coming out of Canada is becoming more than they can handle. This isn’t just a feeling of Republicans loyal to Donald Trump, this is increasingly the feeling of Democrats as well who wonder what has happened to their friends in Canada.
We could be getting to the point where we talk ourselves out of a deal because no one in Washington thinks we are serious partners.
CUSMA may already be too late
The CUSMA deal is supposed to be reviewed by July 1, that is now unlikely to happen based simply on timelines. The CRTC decision on streaming, the indecision on the F-35, the anti-American rhetoric coming out of official channels, all of this is unlikely to lead to a deal.
That means tariffs on steel, aluminium, autos and lumber will continue while other tariffs may soon be a reality. As Mark Carney’s retired voters cheer this on, secure with their investments in American stocks, hard working Canadians will lose hours if not their jobs.
We need a trade deal and we need it soon.
Canada has cards to play, we don’t need to go into this as a junior partner that must surrender everything, but we do need to realize our potential and start living up to it while also not adding additional irritants into the mix.
The Carney government seems incapable of doing this.