H.R. 8025: Protecting American Streaming and Innovation Act

This bill, titled the Protecting American Streaming and Innovation Act, is aimed at addressing concerns regarding Canada's digital trade practices, particularly related to its Online Streaming Act. The bill contains several key components:

Findings

The bill outlines Congressional findings that:

• Digital trade is vital for the U.S. economy, helping businesses reach global markets and create jobs.
• The United States-Mexico-Canada Agreement (USMCA) includes provisions that are designed to ensure fair treatment for digital service providers in North America.
• Canada's Online Streaming Act imposes obligations on U.S. streaming companies that do not apply to domestic Canadian companies, creating a disparity.
• These obligations, such as mandatory contributions to domestic cultural funds and discoverability requirements, can be costly and burdensome for U.S. businesses.
• Canada's approach is seen as discriminatory, violating the commitments under the USMCA and potentially encouraging other nations to implement similar protectionist measures.

Investigation of Canadian Practices

The bill mandates the U.S. Trade Representative to investigate Canada’s implementation of its Online Streaming Act within 30 days of the bill's enactment. This investigation will assess whether Canada's actions are unreasonable or discriminatory against U.S. commerce.

During this investigation, the Trade Representative is required to:

• Consult with affected U.S. businesses that provide online audiovisual or audio streaming services.
• Gather information from relevant trade associations and cultural organizations.
• Coordinate with government departments involved in trade and commerce.

Determinations and Actions

If the investigation finds that Canada’s practices are discriminatory, the Trade Representative must publish this finding and consider actions such as:

• Suspending trade agreement benefits for Canada.
• Imposing duties related to the harms caused by the Online Streaming Act.

If the determination is negative, the Trade Representative must report the findings to Congress.

Reporting Requirements

The bill requires an initial report to Congress within 90 days of enactment, detailing:

• The progress of the investigation.
• Canada's regulatory timeline for the Online Streaming Act.
• Preliminary impacts on U.S. digital service providers.

Subsequent quarterly updates are mandated for two years, covering stakeholder consultations, any remedial actions taken, and the state of U.S.-Canada digital trade relations.

Retaliatory Actions

If Canada does not address the identified discriminatory measures within 180 days of an affirmative determination, the U.S. Trade Representative is empowered to:

• Suspend or modify trade agreements or concessions with Canada.
• Impose additional duties on Canadian goods in line with the burden imposed by Canada’s Online Streaming Act.

Relation to Other Agreements

The provisions of this bill could also apply to other countries that adopt similar discriminatory actions as Canada’s Online Streaming Act, ensuring that the U.S. responds consistently to such practices in international trade.

Definitions

Key definitions in the bill clarify terms such as “appropriate congressional committees” and “online streaming service,” specifying the entities involved in the oversight and the services impacted by the legislation.

Relevant Companies

• AMZN - Amazon could potentially be affected due to its streaming service, Amazon Prime Video, being subject to the new contributions and discoverability requirements if imposed by Canada.
• GOOGL - Alphabet’s YouTube might face implications under the Online Streaming Act, impacting how it operates in Canada.
• CMCSA - Comcast could also be impacted as it provides streaming services through platforms like Peacock, which would need to comply with new regulations in Canada.