[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8025 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 8025

 To provide for an investigation of Canadian digital trade practices, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 19, 2026

 Mr. Smucker (for himself, Mr. Steube, Ms. Malliotakis, Mr. Moran, Mr. 
Kelly of Pennsylvania, and Mrs. Miller of West Virginia) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To provide for an investigation of Canadian digital trade practices, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Protecting American Streaming and 
Innovation Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Digital trade is a critical engine of the United States 
        economy, allowing American companies to deliver innovative 
        audiovisual and audio products and services globally, creating 
        high-paying jobs in the United States and exporting American 
        culture and values.
            (2) The United States-Mexico-Canada Agreement (USMCA), 
        which entered into force on July 1, 2020, includes a robust 
        digital trade chapter intended to prevent discriminatory 
        barriers and ensure a level playing field for North American 
        digital service providers.
            (3) Canada's law, the Online Streaming Act, empowers 
        Canadian regulators to apply ``contribution'' and 
        ``discoverability'' obligations to audio and audio-visual 
        content, resulting in a revenue-based tax that targets American 
        companies.
            (4) Canada has chosen to exempt domestic streaming 
        companies from these obligations, while applying strict 
        obligations to U.S.-based companies. The contribution 
        obligations currently require U.S. companies to pay mandatory 
        high-percentage contributions based on models derived from 
        traditional broadcasters and direct these funds exclusively to 
        domestic cultural funds. They also require U.S. audio streaming 
        companies to pay twice because royalties paid by audio services 
        to Canadian rightsholders are included in services' taxable 
        revenue. Discoverability obligations potentially require U.S. 
        companies to undertake costly and technically burdensome 
        platform modifications, including the implementation of 
        invasive data collection and reporting systems, to enforce 
        content prioritization or quotas. These obligations are 
        discriminatory and place a disproportionate burden on United 
        States commerce.
            (5) These measures appear to contravene Canada's 
        commitments under the USMCA to provide non-discriminatory 
        treatment to United States digital products and services and 
        avoid unnecessary barriers to digital trade, and appear to be 
        unreasonable, discriminatory, and excessively burdensome 
        towards United States commerce. These measures also appear to 
        be a prohibited performance requirement.
            (6) Canada has invoked the USMCA ``cultural industries'' 
        exception to defend measures like the Online Streaming Act that 
        affect audiovisual and music services. However, the exception 
        traces to the Canada-U.S. Free Trade Agreement era and retains 
        a legacy definition of ``cultural industry'' centered on 
        traditional publishing, recordings, and broadcasting, rather 
        than modern means of digital delivery.
            (7) If left unchecked, Canada's discriminatory digital 
        policies will set a harmful global precedent, encouraging other 
        nations to adopt similar protectionist digital sovereignty 
        regimes that target successful United States streaming 
        companies and content producers. Trading partners such as 
        Australia, Brazil, Israel, and others have adopted or are 
        considering similar discriminatory digital policies that 
        primarily impact U.S.-based services. Additionally, even within 
        Canada, Quebec is considering an overlapping regime targeting 
        United States companies.
            (8) It is in the national economic interest of the United 
        States to enforce its rights under trade agreements and 
        statutory authorities and take appropriate action to address 
        foreign practices that are unreasonable, discriminatory, and 
        burden or restrict United States commerce.

SEC. 3. INVESTIGATION OF CANADIAN DIGITAL TRADE PRACTICES.

    (a) In General.--Not later than 30 days after the date of the 
enactment of this Act, the United States Trade Representative shall 
initiate an investigation under section 301 of the Trade Act of 1974 
(19 U.S.C. 2411) to determine whether Canada's implementation of its 
Online Streaming Act (Bill C-11), including the related regulatory 
actions of the Canadian Radio-television and Telecommunications 
Commission (CRTC), constitutes an act, policy, or practice that is 
unreasonable or discriminatory and burdens or restricts United States 
commerce.
    (b) Consultations.--In conducting the investigation required by 
subsection (a), the Trade Representative shall--
            (1) consult with affected United States businesses 
        providing online audiovisual or audio streaming services;
            (2) seek information from relevant trade associations, 
        labor representatives, and cultural organizations; and
            (3) coordinate with the Department of Commerce, the 
        Department of State, and the United States International Trade 
        Commission.
    (c) Determinations and Action.--
            (1) Affirmative determination.--If the Trade Representative 
        makes an affirmative determination under subsection (a), the 
        Trade Representative shall--
                    (A) publish such determination in the Federal 
                Register; and
                    (B) consider appropriate action under section 
                301(c) of the Trade Act of 1974 (19 U.S.C. 2411(c)), 
                which may include the suspension of trade agreement 
                benefits or imposition of duties commensurate with the 
                burden imposed.
            (2) Negative determination.--If the Trade Representative 
        makes a negative determination under subsection (a) and 
        determines that no action described in paragraph (1)(B) is 
        warranted, the Trade Representative shall transmit to the 
        appropriate congressional committees a report explaining the 
        determination.

SEC. 4. REPORTING REQUIREMENTS.

    (a) Initial Report.--Not later than 90 days after the date of the 
enactment of this Act, the United States Trade Representative shall 
submit to the appropriate congressional committees a report on--
            (1) the implementation of the requirements of section 3;
            (2) Canada's regulatory implementation schedule for the 
        Online Streaming Act (Bill C-11); and
            (3) the preliminary findings on the impact of these 
        measures on United States digital service providers.
    (b) Quarterly Updates.--The Trade Representative shall submit 
updates to the report required by subsection (a) on a quarterly basis 
for a period of two years describing--
            (1) consultations held with affected stakeholders;
            (2) any remedial or enforcement actions undertaken; and
            (3) the state of bilateral engagement with Canada on 
        digital trade issues.
    (c) Public Summary.--The Trade Representative shall make publicly 
available a non-confidential summary of each report and update 
submitted under this section.

SEC. 5. RETALIATORY ACTIONS IF CANADA FAILS TO REMEDY DISCRIMINATORY 
              MEASURES.

    (a) Determination of Non-Compliance.--If, not later than 180 days 
after publication of an affirmative determination under section 
3(c)(1), the United States Trade Representative determines that Canada 
has not taken satisfactory steps to remove or amend the discriminatory 
measures identified in the investigation with respect to which the 
determination was made, the Trade Representative shall take appropriate 
action under section 301(c) of the Trade Act of 1974 (19 U.S.C. 
2411(c)).
    (b) Forms of Action.--Actions under subsection (a) may include--
            (1) the suspension, withdrawal, or modification of trade 
        agreement concessions or benefits to Canada under the United 
        States-Mexico-Canada Agreement or other agreements; and
            (2) the imposition of additional duties on goods of 
        Canadian origin in amounts commensurate with the harm from 
        implementation of Canada's Online Streaming Act (Bill C-11).
    (c) Notice and Consultation.--Before taking any action under this 
section, the Trade Representative shall--
            (1) notify the appropriate congressional committees of the 
        proposed action; and
            (2) consult with affected stakeholders to ensure that 
        measures are targeted, proportionate, and minimize unintended 
        consequences for United States consumers and allies.
    (d) Termination of Action.--The Trade Representative may terminate 
any action under this section if--
            (1) Canada eliminates or modifies the measures to the 
        satisfaction of the Trade Representative; and
            (2) the Trade Representative notifies Congress in writing 
        thereof.

SEC. 6. RELATION TO OTHER GLOBAL FREE TRADE AGREEMENTS.

    To the extent that any other foreign country with which the United 
States has in effect a free trade agreement takes actions that are 
similar to the actions of Canada described in section 3(a), the Trade 
Representative shall apply the provisions of sections 3, 4, and 5 to 
such other foreign country.

SEC. 7. DEFINITIONS.

    In this Act--
            (1) the term ``appropriate congressional committees'' 
        means--
                    (A) the Committee on Ways and Means of the House of 
                Representatives; and
                    (B) the Committee on Finance of the Senate; and
            (2) the term ``online streaming service'' means any digital 
        service delivering audiovisual or audio programming to users in 
        Canada via the internet.
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