U.S. targets Canada’s cloud-computing move as trade irritant

The sovereign-computing initiative is meant to ensure that advanced computing power and sensitive data remain under Canadian legal controlAuthor of the article:You can save this article by registering for free here. Or sign-in if you have an account.The U.S. Trade Representative has again cited Canada’s laws about online platforms as trade barriers, and added the country’s sovereign-computing initiative to the list — a cluster of digital-economy issues that are likely to loom large in upcoming trade talks.Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.Jamieson Greer’s office laid out a broad set of complaints in its 2026 National Trade Estimate Report, expanding on concerns raised in last year’s edition. The document runs more than 500 pages and covers dozens of countries, detailing the business obstacles the United States says American firms face.Canada’s Online Streaming Act, which became law in 2023, brings global streaming platforms such as Spotify Technology SA under domestic broadcasting rules and requires them to pay into funds that support Canadian content.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Canada has also begun efforts to create sovereign cloud-computing infrastructure, meant to ensure that advanced computing power and sensitive data remain under Canadian legal control.The report again criticizes the Online News Act, which forces major social media and search companies to pay publishers for carrying links to news stories.

Meta Platforms Inc. opted not to do so, and instead blocks users in Canada from posting links to news sites to Facebook and Instagram.The document lands as Canada, the U.S. and Mexico head into the first mandatory review of the North American trade agreement that U.S.

President Donald Trump signed in his first term. The administration’s growing list of complaints signals the kinds of fights it’s likely to bring to the table.Beyond digital policy, the USTR argues Canada isn’t doing enough to enforce its ban on imports made with forced labour, saying such goods may still be entering the market and undercutting competitors. The U.S. has included Canada in a Section 301 tariff probe examining how countries address these practices.The report highlights friction over Canada’s new cosmetics rules — which U.S. companies said were too demanding until Canada revised them — and ongoing tension over drug pricing, with industry groups arguing Canada’s Patented Medicine Prices Review Board undervalues U.S. pharmaceuticals.It also takes aim at a series of Canadian measures introduced after Trump imposed tariffs a year ago, including provincial moves to stop selling U.S. alcohol, a new “Buy Canadian” policy that prioritizes domestic suppliers for major federal contracts, and procurement rules in several provinces that restrict bids from U.S. firms.Long-running tensions over dairy resurface as well, with the USTR saying Canada’s supply-managed system and tariff-rate quota allocations block meaningful access for American producers. That was a significant issue during the trade talks of Trump’s first term that led to the Canada-United-States-Mexico-Agreement, and it’s certain to feature prominently in this year’s review of that deal.Gabriel Brunet, a spokesperson for Canada-U.S.

Trade Minister Dominic LeBlanc, said officials in Ottawa were reviewing the USTR report. “Canada’s new trade team continues to engage with the United States and Mexico on any issues raised relating to our trading relationships,” Brunet said in an emailed statement.Earlier this week, LeBlanc said talks with the U.S. had only recently restarted after Trump ordered an end to discussions on sector-specific tariffs in October.LeBlanc said Canada is focused on resolving the tariff disputes that are harming sectors such as autos and steel and undertaking the CUSMA review. Canada isn’t seeking to renegotiate the deal but to follow the review process set out in it, he said, adding that both bilateral and trilateral discussions with the U.S. and Mexico are expected.Prime Minister Mark Carney recently installed a new chief negotiator, Janice Charette, and a new ambassador in Washington, Mark Wiseman.With assistance from Brian Platt and Thomas Seal.Bloomberg.comPostmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.