H.R. 8025 directs the U.S. Trade Representative to investigate whether Canada's Online Streaming Act (Bill C-11) unfairly targets American streaming companies and violates trade obligations under the U.S.-Mexico-Canada Agreement (USMCA). The bill contends that Canada's law imposes discriminatory financial contributions and content requirements on U.S.-based services like Netflix and Spotify while exempting Canadian competitors, effectively functioning as a revenue-based tax on American companies. The Trade Representative must launch an investigation within 30 days of enactment, consult with affected U.S. businesses and stakeholders, and submit an initial report within 90 days, with quarterly updates for two years. If Canada fails to remedy the allegedly discriminatory measures within 180 days of an affirmative finding, the Trade Representative may suspend trade benefits or impose retaliatory duties on Canadian goods. The bill also requires the Trade Representative to apply the same investigatory and enforcement approach to other countries that adopt similar discriminatory digital policies.
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