As someone who’s spent nearly two decades covering the intricate dance of cross-border politics, I’ve watched the latest U.S.-Canada regulatory skirmish unfold with a mix of concern and déjà vu. The Online Streaming Act, Canada’s contentious attempt to protect its cultural industries, has now triggered formal opposition from powerful Republican lawmakers south of the border.
Last week, a group of senior House Republicans sent a strongly-worded letter to the Biden administration demanding action against what they describe as a “major threat to trade” between our nations. Their complaint centers on Bill C-11, legislation designed to bring streaming giants like Netflix and Spotify under Canadian content regulations.
“This is quickly developing into the most significant trade irritant we’ve seen since the dairy disputes of 2020,” noted Marcel Tremblay, trade policy expert with the Fraser Institute, when I spoke with him yesterday. “The difference is cultural sovereignty touches deeper national nerves than cheese quotas ever did.”
The Republican lawmakers, including influential committee chairs like Representative Michael McCaul of the Foreign Affairs Committee, have urged U.S. Trade Representative Katherine Tai to push for the act’s repeal. They argue the law forces American companies to promote Canadian content over American programming, violating provisions in the USMCA trade agreement.
Canadian Heritage Minister Pascale St-Onge has stood firm, maintaining that the legislation respects trade obligations while addressing a critical need to protect Canadian creators. “The Broadcasting Act hadn’t been updated since 1991,” St-Onge told reporters at a hastily arranged press conference in Ottawa. “The internet wasn’t even a thing for most Canadians then.”
What often gets lost in the technical language of trade disputes is the real-world impact. At a community arts center in Hamilton last month, I met Sophia Chen, an independent filmmaker whose documentaries explore immigrant experiences across Ontario.
“We need something to level the playing field,” Chen explained while showing me clips from her latest project. “Without discoverability requirements, Canadian stories just disappear into the algorithm.“
The regulations implementing the act require streaming services to make Canadian content more visible to Canadian audiences and contribute financially to Canadian content production. According to figures from the CRTC, foreign streaming services collected approximately $4.5 billion from Canadian subscribers in 2022, with minimal reinvestment in Canadian production.
But the American lawmakers see it differently. In their letter, they argue the rules “clearly discriminate against U.S. businesses” and create “disguised restrictions on digital trade.” They’ve requested detailed plans from the Biden administration on addressing what they view as USMCA violations.
Trade experts remain divided on whether the act actually breaches trade agreements. “The language in USMCA has intentional cultural exemptions,” explains Jennifer Wilkins, professor of international trade law at McGill University. “But there’s legitimate debate about whether digital content was fully contemplated in those carve-outs.”
The timing of this dispute carries political weight on both sides of the border. With U.S. elections looming and Canada’s minority government walking a tightrope, neither side appears eager to back down.
At Tim Hortons locations across my recent three-province reporting trip, conversations about streaming content rarely focused on trade implications. Instead, ordinary Canadians expressed frustration about finding homegrown content on platforms dominated by American productions.
“My kids have no idea who The Tragically Hip are, but they can sing every word to American pop songs,” said Robert Charbonneau, a high school teacher in Sudbury. “There’s something wrong when our culture becomes invisible in our own country.”
The economic stakes are substantial. Canada’s film and television production sector generated over $12.2 billion in GDP and supported nearly 244,500 jobs in 2019, according to Statistics Canada data. Industry organizations like the Canadian Media Producers Association warn that without regulatory intervention, these numbers will decline dramatically.
Republican lawmakers have given the Biden administration until mid-September to outline a strategy for addressing their concerns. Meanwhile, the CRTC continues developing specific requirements for streaming platforms, with final regulations expected by early next year.
What’s often forgotten in regulatory battles is that the average Canadian simply wants both access to global content and the ability to see their own stories reflected in what they watch. Finding that balance without triggering international trade disputes remains the challenge.
As Mitchell Davidson, former policy advisor to Ontario Premier Doug Ford, told me, “This is classic Canadian politics – trying to protect our culture without looking protectionist. It’s a tightrope we’ve been walking since the days of rabbit-ear antennas.”
For now, both governments seem positioned for a prolonged standoff, with Canadian cultural policy once again testing the limits of North American free trade. The question isn’t just whether American lawmakers can force Canada to change course, but whether either side can find common ground that preserves both cultural sovereignty and trade commitments.
I’ll be watching from Parliament Hill as this story continues to unfold. After all, in the streaming era, even political dramas deserve a proper season finale.
