WASHINGTON, D.C. - The U.S. Chamber strongly objects to the Canadian Radio-television and Telecommunications Commission’s (CRTC) decision to impose an initial base contribution of 5% on U.S. streaming services. This decision fails to recognize the significant investments made by American streaming services in Canada’s creative sector.

The Online Streaming Act and the policy directive from the Minister of Heritage explicitly call for flexible regulations that consider the unique business models of global streaming services. Unfortunately, today’s decision falls short of that goal and risks hindering cross-border trade with the U.S.  Furthermore, we believe that Bill C-11 specifically targeting U.S. technology companies may violate Canada’s international trading obligations, including those under the United States–Mexico–Canada Agreement (USMCA).

Today’s action appears to contravene commitments that guarantee investors a minimum standard of treatment, require equal treatment of foreign and local enterprises, and obligate Canada to refrain from imposing certain performance requirements on foreign direct investment. We urge the Canadian government to reconsider this decision and acknowledge the longstanding investments made by U.S. streaming services in Canada.