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US lawmakers hit out at Canada's streaming laws as Australia's quotas face Senate showdown

US lawmakers have urged Canada to rescind regulation on streaming services, while the Coalition is pushing for an inquiry into Labor's plans to impose quotas in Australia.

The communique emerges as the latest development in a broadening effort by the US to heap diplomatic pressure on trading partners to abandon plans to levy American companies as part of Trump’s “America First” trade agenda. Shutterstock.

A bipartisan group within the United States Congress has ramped up pressure on the Canadian government over its streaming video content quotas, in a sign of how the American government may intensify its efforts to quash similar measures in Australia.

The letter, viewed by Capital Brief and not previously made public, was signed by 29 members of Congress including Republican Lloyd Smucker, who has criticised Australia's quotas, and Democrat Linda T. Sanchez and outlines a range of objections to the Canadian regulation, which aims to force streaming platforms to invest in local content.

Dated 21 November, the letter says the legislation “constitutes a clearly discriminatory and burdensome levy on cross-border trade”, in violation of the US-Mexico-Canada Free Trade Agreement. It also says the policy threatens to “chill foreign investment”.

“This law not only endangers cross-border investment but also risks undermining confidence in Canada’s commitment to a fair and open digital marketplace, at the precise moment when our countries should be working to strengthen cooperation ahead of the USMCA review,” reads the letter.