Canada’s 1988 “cultural exemption” meets the streaming era
The article argues that Canada’s long-standing “cultural exemption” language in trade agreements (originating in the 1988 Canada–U.S. Free Trade Agreement and carried into CUSMA) may not adequately cover digital production and on-demand streaming technologies. It highlights potential vulnerabilities in agreements like CPTPP—particularly around e-commerce and differing definitions of “broadcasting”—and suggests Canada seek updated, technology-neutral definitions or adopt UNESCO-based “cultural expressions” language in the upcoming CUSMA review. It cites recent Canadian policy measures affecting streamers (e.g., the Online Streaming Act’s revenue contribution requirements) and platforms involved in news distribution (Online News Act).
Key Takeaways
- Canada’s cultural exemption language (rooted in the 1988 Canada–U.S. FTA and carried into CUSMA) may not clearly cover cloud-based, on-demand streaming and digital production workflows.
- CPTPP is flagged as a weak spot: no broad cultural exemption, reliance on “broadcasting” carve-outs, and an e-commerce chapter where Canada did not fully reserve policy space.
- Definitions of “broadcasting” vary internationally; what Canada treats as inclusive of on-demand may be read more narrowly elsewhere—creating trade-dispute risk.
- Recent Canadian measures (e.g., Online Streaming Act revenue contributions; Online News Act arrangements) raise the stakes as platforms like Netflix, Disney+, Amazon, Spotify, Google, and Meta intersect with cultural policy.
- The proposed fix: update the exemption with technology-neutral language and/or adopt UNESCO “cultural expressions” framing to “future-proof” against new media and AI-driven formats.
Why It Matters
Streaming regulation is increasingly a trade-law problem, not just a CRTC problem. Canada is trying to pull global platforms into funding and distribution rules designed for domestic broadcasting economics—but its key trade shield is anchored in 1988 terminology (“machine-readable,” “broadcasting,” enumerated media). If the exemption doesn’t cleanly map to on-demand, e-commerce, and AI-era creation, policy enforcement becomes a litigation and retaliation risk—especially if the U.S. pushes harder in the upcoming CUSMA review or expands influence via CPTPP. The meme: “broadcast rules are now trade rules.”
Read full article at policyalternatives.ca
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