No CRS summary available for this bill.
This section states congressional findings on digital trade under the United States-Mexico-Canada Agreement (USMCA), which entered into force on July 1, 2020. Congress finds that Canada's Online Streaming Act imposes discriminatory "contribution" obligations (i.e., high-percentage revenue-based payments directed exclusively to Canadian cultural funds) and "discoverability" obligations (i.e., potentially costly platform modifications for content prioritization) on U.S. audiovisual and audio streaming companies—while exempting domestic firms and double-counting royalties for audio services—contravening USMCA nondiscrimination commitments and constituting an unreasonable barrier to U.S. commerce that risks encouraging similar protectionist measures globally.
This section directs the United States Trade Representative (USTR) to initiate, not later than 30 days after enactment, an investigation under section 301 of the Trade Act of 1974 (19 U.S.C. 2411)—the principal U.S. statutory authority to investigate and respond to unreasonable or discriminatory foreign acts, policies, or practices that burden or restrict U.S. commerce—into whether Canada’s implementation of its Online Streaming Act (Bill C-11), including related regulatory actions by the Canadian Radio-television and Telecommunications Commission (CRTC), meets that standard. In conducting the investigation, USTR must consult affected U.S. businesses providing online audiovisual or audio streaming services, seek information from relevant trade associations, labor representatives, and cultural organizations, and coordinate with the Departments of Commerce and State and the U.S. International Trade Commission. If USTR makes an affirmative determination, it must publish the determination in the Federal Register and consider action under section 301(c), which may include suspending trade agreement benefits or imposing duties commensurate with the burden imposed; if USTR makes a negative determination and takes no such action, it must report to the appropriate congressional committees explaining the determination.
This section requires the United States Trade Representative (USTR) to submit to the appropriate congressional committees (1) an initial report, within 90 days of enactment, on the implementation of section 3, Canada’s regulatory implementation schedule for the Online Streaming Act (Bill C-11), and preliminary findings on the impact of these measures on U.S. digital service providers; and (2) quarterly updates for two years on consultations with affected stakeholders, any remedial or enforcement actions undertaken, and the state of bilateral engagement with Canada on digital trade issues. USTR must make publicly available a non-confidential summary of each report and update.
This section requires the United States Trade Representative (USTR), if not later than 180 days after publication of an affirmative determination under section 3(c)(1) that Canada has not taken satisfactory steps to remove or amend specified discriminatory measures, to take action authorized under section 301(c) of the Trade Act of 1974 (19 U.S.C. 2411(c)). Such actions may include (1) suspending, withdrawing, or modifying trade concessions or benefits to Canada under the United States-Mexico-Canada Agreement (USMCA) or other agreements; or (2) imposing additional duties on goods of Canadian origin commensurate with harm from Canada's Online Streaming Act (Bill C-11). Before acting, the USTR must notify congressional committees and consult stakeholders to ensure measures are targeted and proportionate. The USTR may terminate actions if Canada remedies the measures to the USTR's satisfaction and Congress is notified in writing.
This section directs the U.S. Trade Representative to apply the provisions of sections 3, 4, and 5 to any other foreign country with which the United States has a free trade agreement that takes actions similar to those of Canada described in section 3(a).
This section defines key terms for purposes of the Act, including "appropriate congressional committees" (i.e., the House Committee on Ways and Means and the Senate Committee on Finance) and "online streaming service" (i.e., any digital service delivering audiovisual or audio programming to users in Canada via the internet).