Business of Supply

Debate on a supply-day motion asking the government to reject the CRTC’s decision to increase the fee that online streaming services must pay toward Canadian content, from 5% to 15% of their Canadian revenues. Conservatives said the increase would raise costs for Canadians, hurt jobs in film and production, and strain trade relations with the United States, and they called on the government to cancel it. Liberals defended the fee, saying streaming companies should contribute to Canadian and French-language creators the way traditional broadcasters do, and accused the Conservatives of siding with American companies; Bloc members agreed web giants should pay their share and asked about the government’s cancellation of the digital services tax. Some time also went to a member’s inaugural speech on affordability and human rights, and to exchanges about trade negotiations with the United States. The bill title provided (the Military Justice System Modernization Act) does not match the subject discussed and is not part of this debate.Written by AI from the debate. Updated .

Official text (opens in a new tab)

66 statements

Stéphane Lauzon, Argenteuil—La Petite-Nation

Liberal
“I support the law that makes online streaming services support Canadian content. People watch shows online now instead of on cable. Large foreign streaming companies make a lot of money in Canada, so they should help pay for Canadian and French-language creators, just like traditional broadcasters have always done.”
Official Hansard

Mr. Speaker, I would like to share my time with the MP for Scarborough Southwest. I am very pleased to rise today to speak to the Online Streaming Act, the modernization of Canada’s broadcasting system and the importance of ensuring that the stories told by Canadian creators remain a centrepiece of the modern broadcasting landscape. At the core of this problem is a simple reality that we are all familiar with: The way Canadians consume content has changed at lightning speed. The Broadcasting Act was designed for a world of television, radio and cable channels and prime-time audiences. This world has not disappeared entirely, as shown by the millions of Canadians who gathered to watch the Montreal Canadiens during the playoffs. However, it is a thing of the past for most of the Canadians consuming content nowadays. Children no longer run off to get a snack during the commercial breaks, as we did when we were kids. They bring their phones with them and watch whatever they want, whenever they want, provided their parents let them. This change has had some huge benefits. Canadians can access content from around the world more easily than ever before. We can watch Korean dramas, Mexican heist dramas, British bake-offs and singing competitions from around the world. American movies, TV shows and music are also widely available in Canada, and Canadians continue to consume this content extensively every day. There is no denying this reality. This is not necessarily a problem in and of itself. Canadians value choice, and the Online Streaming Act does not take that choice away from them. The act ensures that, in this new content-rich environment, Canadian stories are also supported and showcased. It incorporates the key online streaming services that operate and generate revenue in Canada into a modernized accountability framework. Just as traditional broadcasters have long been expected to contribute to Canadian culture, so too must today’s broadcasters. Through the Online Streaming Act, the House modernized the Broadcasting Act to ensure that foreign streaming companies support our creators, our stories and Canadian music for generations to come. The act establishes a fair and simple regulatory framework under which comparable broadcasting services are subject to similar regulatory requirements. The government has made it clear that the Online Streaming Act and the CRTC’s implementation of regulatory measures are consistent with Canada’s trade obligations, including those under CUSMA. The Online Streaming Act was drafted with Canada’s international obligations and commitments in mind. I want to emphasize that the act is not intended to discriminate against non‑Canadian services. It applies to all undertakings that provide online broadcasting services to Canadians. It is not a matter of nationality, but rather of participating in the Canadian broadcasting system and profiting from it here at home. Far from being discriminatory, the act does exactly the opposite. It requires each company to contribute appropriately to the creation and presentation of Canadian programming, in proportion to its presence and importance in the system. It is a matter of fairness. If a business generates income in Canada, it is expected to contribute fairly and equitably. That is why it is misleading to claim that the act targets U.S. companies. In reality, it aims to create a fair, flexible framework for online streaming services operating in Canada that complies with Canada’s international commitments. Although it requires the CRTC to ensure that online streaming services contribute significantly to the broadcasting system, it does not put U.S. content streamers or creators at a disadvantage. In fact, Canadian streamers are still expected to spend a higher percentage of their revenues on Canadian content than foreign streamers. In the not-to-distant past, online streamers were not required to support Canadian music or stories while contributing to other major broadcasting objectives. Under the CRTC’s Canadian programming expenditure framework, Canadian broadcasting ownership groups are subject to a 25% Canadian programming expenditure requirement, while unaffiliated and non-Canadian online broadcasting ownership groups are subject to a 15% requirement, which includes the 5% base contribution. The framework applies to groups operating in Canada with annual Canadian broadcasting revenues of $25 million or more. This means that small businesses, such as local stations that are often the only sources of information in regional areas, newly launched television services, or specialized streaming television services targeting small audiences, will not be subject to this requirement. It is also important to remember that Canadian broadcasters have long been subject to significant spending and programming obligations and that their obligations to contribute to the system remain in place. Those that generate the most revenue, the major players that are increasingly capturing the public’s attention, will be expected to contribute more and will serve as major windows into Canadian and Quebec culture. Only the major players who can afford to do so are expected to make proportional contributions. The new regulations do not penalize streaming services for operating in Canada. Why would they? The reality is that foreign broadcasters have enriched the broadcasting landscape and provided opportunities for Canadian talent. It is a question of fairness. If a company benefits from its operations in the Canadian market, if it reaches Canadian audiences and if it earns significant revenue from Canadian subscribers and viewers, it is entirely reasonable that it should contribute to the sustainability of the system in which it operates. This is not a radical idea. For decades, Canada maintained an outdated broadcasting policy; it recognizes that culture is not simply a commodity like any other. Broadcasting helps shape the way people understand their country, their communities and one another. It ensures that Canadians can see and hear themselves reflected in the programming available to them. Now more than ever, we need to hear stories that come from here. We need to see ourselves on screen. Our government will never stop supporting Canadian artists and culture. It is high time to pass Bill C-11 and bring it into force as soon as possible. I want to talk about Quebec. It is getting harder and harder for French-language content to break into American channels. We do business with the giants of this world, but the giants of this world are centred on the English language. Bill C‑11 will ensure that we get a fair shake when it comes to our content and promoting the French language in Canadian content. For Quebeckers who want to showcase and promote francophone culture, I can attest that this bill is up to date and good for the Quebec community, the Canadian community and the community that wants to promote Canadian content and see it reflected in our young people, in our future and in young audiences currently consuming the major networks’ products. Bill C-11 is here to stay and here to make us work for our future. I look forward to answering questions.

Bernard Généreux, Côte-du-Sud—Rivière-du-Loup—Kataskomiq—Témiscouata

Conservative
“I want to know how much money the government has collected from the 5% tax and how much they expect to get from the 15% tax. Who will actually have to pay this 15% tax?”
Official Hansard

Mr. Speaker, I have a quick question for my colleague. How much money have the Liberals managed to raise so far with the 5% that was already in place? How much money do they estimate they will raise with the 15%? Who will end up paying the 15%, at the end of the day? Obviously, it is not the government. The government is going to pocket the money and may well redistribute it. That is what the Liberals are saying. Who is actually going to pay this 15% tax?

Stéphane Lauzon, Argenteuil—La Petite-Nation

Liberal
“Artists in my area want more money invested in Canadian and Quebec content. Charging fees on content brings in money we can reinvest to make more of our own content at home. This bill does that.”
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Official Hansard

Mr. Speaker, my colleague is asking an excellent question. I was just talking about Quebec content, but it is Canadian content that ensures that the money is reinvested in content. In my region, our artists are telling us that they want more investment in Canadian and Quebec content. That is exactly what the percentages levied on content are for. They ensure that we can reinvest them here at home to produce more Canadian content. This aligns perfectly with the bill.

Alexis Deschênes, Gaspésie—Les Îles-de-la-Madeleine—Listuguj

Bloc Québécois
“We need to protect our culture and our media. Why did the government cancel the tax on big tech companies that would have supported them?”
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Official Hansard

Mr. Speaker, I thank my colleague for his remarks. He said a number of things that the Bloc Québécois agrees with. I often say that we protect what we love. We love our culture. We love our free, independent press. We want to protect it and give it the means to continue entertaining and informing Quebeckers. I have a question for my colleague. If he loves Quebec culture and the free press, as we do, why did his government cancel the digital services tax a year ago, a tax that would have been used to take money out of the pockets of web giants and give it back to our culture and media?

Stéphane Lauzon, Argenteuil—La Petite-Nation

Liberal
“Our online streaming law supports Canadian and Quebec culture. It takes money from digital platforms and gives it to our local artists and creators.”
Official Hansard

Mr. Speaker, I think that my colleague and I share a Quebec culture and a Canadian culture, which the government greatly supports. Bill C‑11 does just that. That money will be reinvested in Quebec content. We will promote our artists. We will stand up for our creators. For the next generation, we will invest that money in Canadian and Quebec content. I am proud that we can reinvest what comes from digital content in our local and Quebec artists.

Kevin Lamoureux, Parliamentary Secretary to the Leader of the Government in the House of Commons

Liberal
“The Conservatives want to give up on protecting our arts and culture during trade talks. I want the member to explain why supporting the arts is important for Quebec and all of Canada.”
Official Hansard

Mr. Speaker, I would like my colleague’s thoughts on how it is that the Conservative Party appears to want to surrender our sovereignty on this particular issue. The Conservatives are, in essence, saying that because of negotiations that are taking place, we should just capitulate and have nothing to do with protecting our arts, our performing artists and our culture. I am wondering if the member would provide his thoughts on how important our arts programs are for provinces such as Quebec, and across Canada, and how important it is to support them in the different ways we do.

Stéphane Lauzon, Argenteuil—La Petite-Nation

Liberal
“The Conservatives want to vote against this bill even though it helps Canadian and Quebec artists. They also want to cut CBC and Radio-Canada. This bill helps keep our own content here and does more for Canadians.”
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Official Hansard

Mr. Speaker, I would like to thank my colleague for his question. Obviously, it is easy for the Conservatives to target the bill and try to vote against something that helps our Quebec and Canadian artists. However, we must remember that it is also the Conservatives who want to abolish CBC/Radio-Canada and cancel the investments we are making in our Quebec and Canadian advertising. This bill enables us to bring content home and do more for Canadians and Quebeckers.

Bernard Généreux, Côte-du-Sud—Rivière-du-Loup—Kataskomiq—Témiscouata

Conservative

Linked statement

“The government spends most of its ad money on big tech companies instead of local news. How much money did the government collect from its streaming tax, and who will pay for the new increase?”
Official Hansard

Mr. Speaker, let us talk about advertising. The Canadian government is currently running 80% of its ads on platforms owned by the tech giants. It gives them money every day, millions and millions of dollars in advertising, instead of advertising in our local and regional organizations and media. I will ask my colleague again. How much money did the government collect with the 5% it implemented through Bill C‑11? By the way, that legislation has been in place for a number of years, and it is not even in effect yet. Now they are increasing it to 15%. At the end of the day, who is going to pay the 15%?

Stéphane Lauzon, Argenteuil—La Petite-Nation

Liberal
“Our bill takes money from broadcasting and spends it on Canadian culture and content in Quebec and across Canada. We are proud of this bill, but the opposition wants to cut funding for the arts.”
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Official Hansard

Mr. Speaker, I would like to reply to my colleague in French. It is clear, and I said it in response to his first question: The money invested that we collect from radio and television broadcasting will be reinvested in Quebec, reinvested in Canada and reinvested in Canadian content. That is exactly why the law is in place. It is to keep our culture at home. I know that my colleague is not happy about that, because he would like to do away with everything that involves the arts, artists or communications, but if there is one thing I would like to say, it is that we are proud of our bill.

Doly Begum, Scarborough Southwest

Liberal
“This is my first speech in the House. I am here to represent Scarborough Southwest, and I am the first Bangladeshi Canadian to serve here. People in my riding are struggling to afford food, rent, and medicine. Our government is taking action to lower these everyday costs and build more homes. We must also protect human rights around the world, including the innocent people suffering in Gaza and the West Bank.”
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Official Hansard

Mr. Speaker, I rise today on behalf of the good people of Scarborough Southwest to deliver my inaugural speech in the House as their member of Parliament, and I do so with immense gratitude and humility. I want to begin by recognizing my constituents and everyone who helped our campaign in hopes of a better future. For nearly eight years, I have had the honour of serving our community as their member of provincial parliament. I sat with residents in my office, at community events and at town halls, listened to them at their doors and heard their stories of sacrifice, resilience, hope and hard work. I carry those stories with me into the House. I carry the trust of a community that has given me and this government one of the strongest mandates in history. Families, workers, seniors, newcomers, young people and small business owners in Scarborough Southwest all rallied together around the promise of a better future. They are the ones who sent me here, and my work here will be guided by that promise and that responsibility every single day. I also stand here today with a profound sense of history, as the first Bangladeshi Canadian elected to public office in Canada, and now the first of Bangladeshi origin to take a seat in this chamber. This moment is not mine alone. This moment belongs to every immigrant parent who travelled thousands of miles across oceans with fear of the unknown, but hope in their hearts. It belongs to every individual who worked long hours and made countless sacrifices, believing that their future generations could thrive. It belongs to every young person who has ever wondered whether their name, their story, their faith or their background could fit in spaces like this. I stand here today because of the very promise Canada made to families like mine: the chance to build a better future. I want to make sure every child in our country knows that they belong in the future we are building right here. Our job here is to protect that promise at all costs and renew it for the next generation. Scarborough Southwest is not just the riding I represent. It is the community that raised me, shaped my values and showed me what that promise means. Our community has been built by people from all walks of life who have been united by the belief that Canada offers a fair shot at a better life. However, right now, for too many, that promise seems out of reach. Many are working multiple jobs and are forced to stretch every single dollar just to get by. Affordability is not abstract in Scarborough Southwest. It is the painful choice of paying rent over buying groceries. It is kids saving on TTC fare by walking. It is prescriptions being left unfilled. It is the stressful calculation of cost after every paycheque to see if anything is left at the end of the month. This is why, over the past year, our new Liberal government has recognized that Canadians need immediate relief from these challenges and a long-term plan to build a stronger, more resilient economy. This is why our record on affordability matters. Recent measures like the Canada groceries and essentials benefit, which will help millions of Canadians, the temporary pause on the federal fuel excise tax, and the strengthening of consumer protections are just some of the steps our government has taken to keep money in the pockets of hard-working Canadians. Affordability is also about lowering costs over time, creating good-paying jobs, fighting tariffs while strengthening and diversifying our economy, and giving families more security for the future. Our investments in infrastructure, more homes at lower costs, skilled trades, innovation and the critical sectors will shape our economy for decades. These measures address people’s everyday challenges while renewing Canada’s promise to future generations. As we speak about Canada’s future, we must also speak honestly about the world around us. In what is perhaps the most consequential speech of our time, the Prime Minister accurately stressed that Canada must be “both principled and pragmatic”: principled in our commitment to international law and human rights, and pragmatic in recognizing the world as it is, not as we wish it to be. The part that stuck with me was when the Prime Minister said that Canada has “something else...a recognition of what’s happening and a determination to act accordingly.” That means our conscience must also include protecting innocent, vulnerable people around the world. No child should grow up under constant fear or bombardment. No family should have to search through rubble for their loved ones. No single person should ever be denied food, medicine, safety, shelter or the basic dignity of human life. The horrific suffering of Gaza, and more recently the abhorrent treatment of the flotilla humanitarians, including Canadian humanitarian volunteers, and the illegal expansion of settlements in the West Bank, has shaken the conscience of so many Canadians. Canada’s strength is not just about the size of our economy, our resources or our alliances; our strength also comes from our values and our belief that justice cannot be selective in whose pain it recognizes. If we speak about “value-based realism”, then we must uphold our moral values while facing the world as it is. If we speak about human rights, then those rights must apply to everyone. If we speak about peace, then that peace must be rooted in justice and accountability. We have a choice: either to accept a world where the powerful do whatever they want and the weak pay the price, or to help build a better, more just world. I return to the promise Canada offers and our responsibility as members of this House to protect and renew that promise. That promise is renewed when we make sure that families can afford a life and that workers know their hard work pays off. It is renewed when seniors feel relieved thinking about their future and when we encourage young people to dream big for their future. It is renewed when a child of immigrants can stand in this House, knowing that she belongs here. Even more importantly, that promise is renewed when Canada looks at a broken world and does not choose indifference, but chooses to act with principles and courage.

Jacob Mantle, York—Durham

Conservative
“At a recent conference in Toronto, the words 'Jew free' were shown on a screen. I want my colleague to stand up today and speak out against treating Jewish people this way.”
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Official Hansard

Mr. Speaker, I would like to welcome my hon. colleague to the House. She will no doubt be aware that recently the Muslim Association of Canada held a networking session, a conference, for Canadians in Toronto. In a word cloud that was presented at that conference was the phrase “Jew free”. I wonder if my hon. colleague would take this opportunity in her maiden speech during the questions and comments to get up here and show us her courage to condemn that type of thinking in Canada.

Doly Begum, Scarborough Southwest

Liberal
“People of all faiths must have the freedom to be who they are, especially after what Jewish people have suffered. I condemn anyone who attacks that freedom. I support people of all religions and backgrounds.”
Official Hansard

Mr. Speaker, I want to thank my hon. colleague from the other side for that question, because it allows me to say this publicly here. I have said in the Ontario legislature that people of all faiths, especially after the history that Jewish people have suffered, have to have the freedom to be who they are. Anyone who says anything like that should be condemned, so I condemn that and I stand with people of all religions and all backgrounds for their right to be who they are.

Alexis Deschênes, Gaspésie—Les Îles-de-la-Madeleine—Listuguj

Bloc Québécois
“I want to know what the member thinks about the government changing its mind on the digital services tax.”
Official Hansard

Mr. Speaker, I would like to welcome my colleague and congratulate her on her first speech in the House. I would like to hear her comments on the Liberal government’s backtracking on the digital services tax. What are her thoughts on this?

Doly Begum, Scarborough Southwest

Liberal
“Our government is taking the right steps to help people with the problems they face, including trade tariffs. I want to work with other members on good policies, like those for artificial intelligence, that help everyone.”
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Official Hansard

Mr. Speaker, I think our government is taking all the steps necessary, especially at the time right now, to address the challenges that people are facing. If I had had more time, I would have talked about more measures that our government is taking. Right now we are facing a very difficult time with tariffs, and just this morning, I was at the industry committee, where we talked about AI. I know my hon. colleague has sat with me at some of the committee hearings as well, so we will work together to make sure that we have policies that help everyone, and I look forward to doing that.

Arielle Kayabaga, London West

Liberal
“I want to know what my colleague thinks about the opposition motion. It hurts our culture and French-speaking communities. Why should we vote against it?”
Official Hansard

Mr. Speaker, I also want to extend a warm welcome to my colleague for her maiden speech in the House. On that note, I want to ask my colleague what she thinks about the fact that the opposition really is pushing a motion to try to overstep culture and protection of culture for our communities here in Canada, especially for francophone communities. Can my colleague comment on why it is important that we oppose this motion?

Doly Begum, Scarborough Southwest

Liberal
“We must do everything we can to protect both English and French, especially French. We also need to do our part to protect Indigenous languages from disappearing.”
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Official Hansard

Mr. Speaker, one of the things that I found really inspiring, after being elected and being in this House, is practising my French. I had almost stopped using my French after my university days. I learned French and English at the same time, so both are my second languages. Unfortunately, I did not practise enough. I think we have to do everything possible to protect both of our languages, and we should do everything possible to work hard so that French is protected. I also want to take a moment to say that there are a lot of indigenous languages that may be going extinct, and we should do our part to make sure that we protect them as well.

Bernard Généreux, Côte-du-Sud—Rivière-du-Loup—Kataskomiq—Témiscouata

Conservative
“I welcome my new colleague to the House. I want to ask her a question in French. Who will end up paying the 15%?”
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Official Hansard

Mr. Speaker, I would like to welcome my newly elected Liberal colleague. I could give her the opportunity to answer a question in French, since she says that she has learned French. There is no reason to be embarrassed about speaking English or French when in the House of Commons. I would simply like to know who, in the end, will pay the 15%? She can give a very simple answer.

Doly Begum, Scarborough Southwest

Liberal
“I am learning French and want to practise more. Our government is working to put more money into the pockets of working Canadians. I want to work with all members here to do that.”
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Official Hansard

Mr. Speaker, I only speak a little French. I need to practise. I am learning, and I look forward to doing that in the coming months and years. Maybe my hon. colleague will help me learn and practise as well. I know that our government is taking action to make sure that more money goes into the pockets of hard-working Canadians. That is essentially the aim of every policy and every bill that we pass in this House. I look forward to working with every member in this House to do just that.

Jacob Mantle, York—Durham

Conservative
“The government should stop the CRTC from raising taxes on foreign streaming services like Netflix. This tax will make streaming cost more for Canadians and will anger the United States, which could hurt our trade agreement. Good Canadian culture succeeds on its own, not through taxes that fund bad shows.”
Official Hansard

Mr. Speaker, October was a beautiful month at Green Gables, when the birches in the hollow turned as golden as sunshine and the maples behind the orchard were royal crimson and the wild cherry-trees along the lane put on the loveliest shades of dark red and bronzy green, while the fields sunned themselves in aftermaths. Anne reveled in the world of color about her. “Oh, Marilla,” she exclaimed one Saturday morning,... “I’m so glad I live in a world where there are Octobers...” Those who love Canadian content may recognize this memorable passage from the great Canadian story Anne of Green Gables, written by the great Canadian author Lucy Maud Montgomery. This passage highlights why the book has endured for so many years: Anne’s irrepressible spirit, capturing her vivid imagination that turns the ordinary autumn into something magical. Anne’s author, Lucy Maud Montgomery, in fact spent 15 years of her life in Leaskdale, Ontario, which is in my riding of York—Durham, about 15 minutes from where I live. She wrote the majority of her books while living in Leaskdale, and she raised her two surviving children there. Anne of Green Gables was not successful because Lucy Maud Montgomery was funded by a tax on foreign authors. Anne of Green Gables was not successful because a Liberal government forced Canadians to buy her book. It was successful because it was great writing, great content and great Canadian culture. The strength of Canadian culture should not rely on forcing foreign companies to subsidize Canadian content. The strength of Canadian culture should not rely on forcing foreign companies to force Canadians to watch or listen to government-mandated content, regardless of its quality. We are talking about the Online Streaming Act today and the increase in that tax on Canadians, the Netflix tax, from 5% of gross Canadian revenues to 15% of gross Canadian revenues, which will undoubtedly increase the costs for Canadians. There are many reasons to oppose this tax hike, but what I want to focus on today is that this tax hike will be a trade irritant with our friends in the United States and will impede our ability to get a good deal on our CUSMA renewal. Since its introduction, the Online Streaming Act has faced trade backlash from the United States, and rightly so. It requires foreign streaming services to contribute a percentage of their gross Canadian revenues to Canadian production funds as a condition of market access. Those payments were at 5% and have now increased to 15%. These rules are discriminatory for at least four reasons: First, they exclude Canadian streaming services from the same obligations, so foreign companies must pay and Canadian companies do not have to. Second, when foreign companies pay, they pay twice. That is because the royalties they pay to Canadian rights holders are included in the taxable revenue used to calculate their obligation. I know Liberals love taxes, but this is a tax on a tax. Third, the rules exclude foreign companies from benefiting from those content funds. Last, they require streaming providers to promote and prioritize Canadian content. This is often referred to as discoverability. I will pause on that for a moment. The government is dictating the content that these streaming service providers must show Canadians. They are telling them that regardless of whether a show is popular, of quality, good to watch, fun to watch or even if anyone wants to watch it, it must be shown to Canadians. The Liberal government will tell them what content is okay. All of this leaves us with an unfair and uneven playing field, whereby foreign companies are required to contribute but banned from benefiting. The cost to foreign companies is real. One estimate that was submitted before the CRTC by the Computer and Communications Industry Association in the United States said that at 5%, it cost its industry $2.2 billion U.S. This will grow between 2025 and 2030, at the higher CRTC rates, to over $7 billion U.S. I am not noting the cost so that we shed a tear for companies that are paying taxes but to note that there is a real cost to U.S. companies. We should not be surprised that these U.S. companies are outraged that they are being discriminated against and are calling on their government to take action. The Americans have responded in several ways. First, the Online Streaming Act has been identified in the USTR’s national trade estimates report every year since its passage. That report identifies trade irritants that the U.S. has with countries around the world. If we go to the section on Canada, we will find a subsection on the Online Streaming Act, which calls out this tax. This is not just some government report that sits on a shelf. USTR Jamieson Greer has repeatedly said in public that the national trade estimates report must be part of any CUSMA renegotiations. This means that the issue is squarely in play for the U.S. The government has often claimed that Canada is shielded from this or otherwise protected because of the so-called cultural exception in the CUSMA. The cultural exception exists, but it comes with a price. Let me unpack that a little more. The starting point is chapter 19 on digital trade in the CUSMA. It covers non-discrimination. It says, in the relevant part, “No Party shall accord less favorable treatment to a digital product created, produced, published, contracted for...or...made available on commercial terms in the territory of another Party”. We have to treat foreign digital products in the same way as we treat other foreign digital projects and products created in Canada. Lawyers will argue on whether there is discrimination or not, and we will leave that to them. I would say that I think the case is pretty strong. That takes us to the so-called cultural exemption, which is found in chapter 32. It says, in the relevant part, that the agreement, the CUSMA, “does not apply to a measure adopted or maintained by Canada with respect to a cultural industry”. Okay, that sounds good. However, that is not the whole story, because just two articles down, it says, “Notwithstanding any other provision of this Agreement, a Party may take a measure of equivalent commercial effect in response to an action by another Party that would have been inconsistent with this Agreement”. Taken together, this means that Canada can violate its non-discrimination obligations in the digital trade chapter for the cultural sector in Canada, as it is doing with the Online Streaming Act. However, that gives the U.S. the right to retaliate with “equivalent commercial effect”. This is why the estimates of the cost to U.S. industry are so important, because it tells us what the retaliation may be. It is also important to note that the retaliation provision is not limited to the cultural sector. This means that the United States could choose which products or services it wishes to retaliate against. The U.S. has done that repeatedly with other countries. We can take France as an example. The U.S. retaliated to the French digital services tax by targeting its wine, cheese and handbags. We have talked a lot in the House about vulnerable industries in Canada: steel, aluminum, lumber, automotive and seafood. We can imagine the United States taking retaliatory action, completely consistent with its obligations, in one of those industries. I just want to end on how this funding is being used, because we could argue about whether this is good or not, but what really puts the nail in the coffin for me is to see how this cultural funding is being used. It is often used to push radical ideologies on Canadians, families and children. Let us look at just a couple of the outrageous examples. Most recently, we heard about the example of the prank show Northland Tales, produced by the CBC and APTN, in which the state broadcaster used deceptive tactics to lure participants to a show and then sandbagged them to push their anti-historical, anti-Canadian narratives attacking Canadian figures and institutions such as John A. Macdonald, the founder of our country. Without Macdonald, there would be no Canada. There was also the RCMP, a historic institution in this country. Even members of Parliament were targeted. The member for North Island—Powell River was targeted. He is smarter than the average bear and was able to avoid that. We can see that this funding is not used to promote quality Canadian content, such as Anne of Green Gables. It is wasted on radical ideologies. However, there is a solution. The solution is that the government should use its powers to stop the CRTC from raising this tax from 5% of revenues to 15% of revenues. The government has the power. It has its majority. The question is whether it will do that. At the end of the day, Canadians want to go home, kick their feet up, crack a beer and watch Netflix without having it cost them an arm and a leg.

Kevin Lamoureux, Parliamentary Secretary to the Leader of the Government in the House of Commons

Liberal
“The Conservatives are siding with American politicians and companies like Netflix instead of protecting Canadian arts and culture. They keep giving in to the United States.”
  • Question or comment in debate

    Signal 9 of 100

    Much of this statement went to praise, blame, greetings, routine procedure or general stories rather than reasons, requests or specific points.

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Mr. Speaker, it is somewhat sad to see Canada’s official opposition surrender our arts and cultural sovereignty to the United States. That is in fact what we have been witnessing from Conservative members like the one who just spoke, who made it very clear why he wants everyone’s gung-ho support of this resolution. He is advocating for what we would expect to hear from American politicians or for advocates for Netflix. That is the kind of advocacy we are seeing coming from the Conservative Party. Okay, the Conservatives want us to capitulate. This is not the first time. I remember, on Trump one, that they wanted us to capitulate. Why are the Conservative Party members giving up on our culture and heritage communities?

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