The definition of cultural industries includes Under this clause, Article 32.6(2), aka Paragraph 2, the Agreement does not apply to any actions taken by Canada that relate to cultural industries (with two minor exceptions). More on this below.Īny measures taken by Canada to regulate US streaming services under CUSMA, even if discriminatory, would not violate the terms of the Agreement because of CUSMA’s cultural exemption clause. They could, however, have violated Canada’s commitments under the Trans-Pacific Partnership (TPP) but Donald Trump inadvertently came to Canada’s rescue. We don’t know what concern was expressed by the US-it may simply have been a shot across the bow to let Canada know that USTR is carefully watching to ensure that any impact on US interests is taken into account as the legislation wends its tortuous way through the Canadian parliamentary process -but there is no question that whatever actions are taken by Canada regarding digital streaming services, they will not constitute a violation of the CUSMA/USMCA. Now that US Trade Representative (USTR) Katherine Tai in her recent meeting with Canada’s International Trade Minister Mary Ng has officially taken notice of the Online Streaming Act (Bill C-11), (“ Ambassador Tai expressed concern about…pending legislation in the Canadian Parliament that could impact digital streaming services“) this raises the question as to whether aspects of the Bill might violate commitments Canada has made under international trade agreements, such as the updated NAFTA, known as CUSMA.
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