OTTAWA — A group of 18 Republican members of Congress is urging top officials in the Trump administration to pressure Canada to repeal its Online Streaming Act. They describe the legislation as a significant threat to U.S.-Canada trade relations.

In a letter dated July 31, the lawmakers on the House Ways and Means Committee expressed their concerns about the Act, which they claim imposes discriminatory obligations on American streaming services. They are asking U.S. Trade Representative Jamieson Greer, Treasury Secretary Scott Bessent, and Commerce Secretary Howard Lutnick to engage with Canadian officials to address these issues.

The letter states, "The fact that the Online Streaming Act already imposes discriminatory obligations and threatens additional obligations imminently is a major threat to our cross-border digital trade relationship." The lawmakers are advocating for the repeal of the Act, similar to how Canada abandoned its Digital Services Tax in June.

The Online Streaming Act, enacted by the Canadian government in 2023, requires online streaming platforms to comply with Canadian broadcasting regulations. Under this law, the Canadian Radio-television and Telecommunications Commission (CRTC) mandated that services like Spotify, Netflix, Amazon, and Apple contribute five percent of their annual Canadian revenue to a fund for Canadian content creation. This requirement is estimated to cost each platform approximately $1.25 million annually and is currently being challenged in the Federal Court of Appeal by several companies, including Apple and Amazon.

The letter highlights the growing concern among U.S. lawmakers regarding Canadian digital policies that they believe negatively impact American companies. It also reflects the ongoing trade tensions between the two countries, with Republicans and President Trump vocalizing their frustrations over various trade issues.

The signatories of the letter include Representatives Rudy Yakym, Lloyd Smucker, Adrian Smith, and Brian K. Fitzpatrick. They argue that the streaming sector is a vital economic driver for the U.S. and should be prioritized in trade negotiations.

They wrote, "The CRTC’s implementation of the Online Streaming Act… is deeply problematic. Online streaming services significantly differ from domestic broadcasters, and the resulting CRTC decisions under the Act clearly discriminate against American companies, interfere with consumer choice, and harm American artists and right holders."

Canadian Prime Minister Mark Carney's government is currently negotiating a new trade deal with the U.S., aiming to eliminate tariffs on key Canadian industries. When asked if the government supports the Online Streaming Act or if it might be reconsidered during negotiations, a spokesperson for Carney declined to comment, stating, "With respect to the negotiations with the U.S., we can’t speak to the details of those (and) won’t negotiate in public."

Earlier this year, Greer included the Online Streaming Act in a report on foreign trade barriers, noting that the rules may effectively exclude Canadian streaming services from new obligations and prevent U.S. suppliers from accessing funding mechanisms.

In response to the Republican letter, the advocacy group Friends of Canadian Media defended the Act, arguing that it protects Canada’s broadcasting and media sectors. Sarah Andrews, the group’s senior director of government and media relations, stated, "Our decision-makers here at home have already bent to American pressure once by scrapping the Digital Service Tax. They cannot make such a costly mistake again."

Last year, a bipartisan group of U.S. lawmakers expressed similar concerns in a letter to President Biden’s Trade Representative, Katherine Tai, stating that the Act discriminated against U.S. companies and could harm the music industry.

On a related note, Carney recently suggested he might consider revising or repealing the Online News Act to improve the dissemination of local news, following Meta's ban on news access for Canadians on its platforms.