As the United States and Canada narrow differences over rules on French-language content exposure and product labeling applied to U.S. corporations, there is hope that a recently collapsed trade dispute could ease. However, core conflicts over steel, aluminum, and auto tariffs remain.
On the 27th (local time), Dominic LeBlanc, Canada's Minister in charge of trade with the United States, said the United States signaled it would no longer treat rules on content exposure and product labeling intended to protect the French language and Canadian culture as a trade issue.
◇ "It's not that we're saying don't use French… Regulations on U.S. corporations are the issue"
Canada has used both English and French as official languages since enacting the Official Languages Act in 1969. In particular, French is directly tied to the culture and identity of Quebec. As a rule, products sold in Quebec must display French descriptions, and trademarks that include generic or descriptive expressions must show those parts in French.
Similar regulations are being pursued for online content. Canada and Quebec have pushed for measures to make French- and Canada-related content easier for users to find on global media services such as Netflix, Spotify, and Apple.
In June, the Canadian government said it would scrap a federal requirement that U.S. streaming companies contribute a portion of local revenue to Canadian content production. But rules on French-language content exposure and Quebec's product labeling requirements remained separate issues and became sticking points in trade talks with the United States.
After the talks collapsed, some interpreted that the United States had asked Canada to restrict the use of French. The U.S. side countered that the issue was not French itself, but regulations to protect language and culture applied to its own corporations. The argument was that product labeling and content exposure rules increase service operation burdens and expense for U.S. corporations.
Jamieson Greer, the head of the Office of the United States Trade Representative (USTR), pushed back in a CNBC interview on the 24th, calling the interpretation that the United States had taken issue with French itself "a ridiculous fake story." He added, "I like the people of Quebec, and I like that they use French," but said, "The core issue is that Canada forces U.S. streaming giants to use a portion of their revenue to support domestic content."
By contrast, Canada Prime Minister Mark Carney said at a press conference in Lévis, Quebec, the same day that while explaining why trade talks with the United States fell apart, in French, "French may be a headache for the United States, but for Quebec and Canada, it is a right." It was a counter to Greer dismissing Canada's claim that the United States had taken issue with Canada's French-protection policies as "a ridiculous fake story." Because the equal status of English and French is enshrined in Canada's constitution, the remark is seen as mindful of the possibility of a fierce political backlash in Quebec if related policies are conceded.
Greer also acknowledged in a later interview with CBC News, Canada's public broadcaster, that the United States had raised the French-language content exposure rules during the negotiations. But he said, "The U.S. government knows the importance and sensitivity of French in Canada," and "There is no chance we would forgo a good agreement because of such issues."
◇ Cultural rift on the mend… Core tariff war still in progress
Canada also left the door open to resuming talks in light of the U.S. explanation. Minister LeBlanc said, "We welcome the United States confirming that it is withdrawing its previous position on rules regarding content search and labeling and will not treat measures that encourage the French language and Canadian culture as future trade sanctions." He added that if the United States offers constructive explanations on other issues, the two sides could conclude a trade agreement that respects Canada's sovereignty.
Still, it is difficult to guarantee a deal. The New York Times (NYT) reported that the hard-line stance of U.S. Commerce Minister Howard Lutnick over steel, aluminum, and autos was the decisive cause of the breakdown. President Trump's signing of an executive order to rename Lake Ontario, which the United States and Canada share, to "Lake America" could also weigh on the talks.
Canada excluded U.S. seafood from its retaliatory tariff list to leave room for dialogue. The initial tariff list included dozens of fresh and frozen seafood items, such as herring, shellfish, tuna, and flatfish. The Canadian government said it adjusted the list to protect domestic industries and respond precisely to U.S. tariff measures.