Skip to content

Canada's Business and Tech Newsroom

  • Professional Subscription
  • Partnerships & Advertising
  • Licensing & Syndication
Log In Subscribe
Welcome,
  • My Account
  • Log Out
  • Business
  • Tech
  • National
  • The Big Read
  • Briefings
  • Commentary
Search
Log In Subscribe
Welcome,
  • My Account
  • Log Out
News

USMCA could limit Canada’s ability to regulate online platforms, warn opposition MPs and experts

The federal government has promised new regulations that will require online platforms like Facebook and YouTube to remove illegal content, or face penalties. But opposition MPs and some experts say digital-trade provisions in USMCA limit Canada’s ability to make internet policy, or hold Big Tech accountable for the spread of such material, and its consequences. 

News

USMCA could limit Canada’s ability to regulate online platforms, warn opposition MPs and experts

By Murad Hemmadi
Deputy Prime Minister Chrystia Freeland and USMCA lead negotiator Steve Verheul appear before the House of Commons trade committee in February 2020.
Deputy Prime Minister Chrystia Freeland and USMCA lead negotiator Steve Verheul appear before the House of Commons trade committee in February 2020. Photo: THE CANADIAN PRESS/Adrian Wyld
Mar 12, 2020
A A
A Small A Medium A Large
Share

Gift

Share

The federal government has promised new regulations that will require online platforms like Facebook and YouTube to remove illegal content, or face penalties. But opposition MPs and some experts say digital-trade provisions in USMCA limit Canada’s ability to make internet policy, or hold Big Tech accountable for the spread of such material, and its consequences. 

Talking Point

Experts and opposition MPs warn USMCA limits Canada’s ability to make its own internet policy, amid a growing international push against the kind of broad immunity measures offered by the U.S.’s increasingly controversial Section 230—on which a portion of the trade deal is based. Ottawa disputes that reading, saying USMCA’s provisions that prevent governments from holding online platforms liable for content their users post won’t stop it from regulating the tech giants.

Under USMCA’s digital-trade chapter, countries can’t make rules holding online platforms liable for third-party material they distribute or make available, effectively shielding platforms  from legal responsibility for the content their users post. U.S. tech lobby groups like the Internet Association and the Computer and Communications Industry Association—which both count Amazon, Facebook, Google, Pinterest and others among their members—pushed for the inclusion of such a provision during the negotiations to update NAFTA. The measure that made it into USMCA largely mirrors Section 230 of the 1996 U.S. Communications Decency Act, which industry organizations say contributed to the tech sector’s growth in the U.S.

The Liberal government has promised new regulations on social media platforms, starting with a requirement to take down illegal content—such as hate speech, terrorist propaganda and child exploitation—within 24 hours at peril of “significant penalties.” It’s also developing policy on the spread of disinformation online.

Ottawa insists the adoption of USMCA—which Parliament is currently considering—won’t change that. The deal’s digital-trade provisions “will not affect Canada’s ability to regulate internet platforms, including its ability to remove harmful content and enforce regulations,” said Katherine Cuplinskas, press secretary to Deputy Prime Minister Chrystia Freeland, who led the negotiations. 

Opposition members disagree. Conservative industry critic Michelle Rempel Garner does not support the government’s plans, saying it should let law enforcement and the courts enforce existing laws on hate speech, libel and other illegal behaviour; in October 2015, for example, a Toronto man was convicted of criminally harassing and threatening the MP on Twitter. But she expressed concern that USMCA limits Canada’s regulatory options on platform liability and other digital trade issues. “We’ve hamstrung ourselves before we’ve had the conversation on the scope of who is liable,” she said. 

All three countries have committed to an automatic six-year review of USMCA, and Rempel Garner said Canadian policymakers need to be ready to evaluate its digital-trade provisions. In February, the House industry committee, on which she sits, called for the government to analyze how the deal’s platform-liability measures will impact its regulatory proposals and review other technology provisions within a year of the deal taking effect.

NDP MP Charlie Angus also said “safe harbour” provisions such as those in USMCA and the U.S.’s Section 230 should be revisited. “We accepted the bogus argument that [online platforms] are just dumb pipes,” he said. “We live in a dramatically changed world now, because it’s a machine-driven AI that drives YouTube, [or] what you see on Facebook.” But he said the Liberals’ takedown proposal—for which the House of Commons’ ethics committee, of which he is a member, has long advocated—is insufficient. “It’s whack-a-mole if we have to keep going and finding this video or that video that is hate-driven or showing a terrorist act,” he said, noting that USMCA also limits governments’ access to platforms’ algorithms, which he said are responsible for the spread of such content.

A takedown law such as the one the Liberals have proposed “would seem to violate Section 230 as it’s practiced now in the United States,” said Adam Candeub, a law professor at Michigan State University, although he added Canada would have “some wiggle room” under USMCA based on how it implements such a measure. 

The government did not answer The Logic’s questions about which country had proposed the online platform liability provisions or why Canada had agreed to them. But Ottawa’s trade negotiators considered previous Canadian court decisions in their goals for the deal’s digital-trade provisions, according to a government source who requested anonymity because they were not authorized to speak publicly.   

Section 230 has come under renewed scrutiny from policymakers from both major U.S. parties and some major companies are increasingly suggesting safe-harbour provisions need to be revisited. Republican Senator Ted Cruz opposed Section 230 on the belief that online platforms are censoring conservative messages, while Democrat counterpart Mark Warner argued in a February speech that they’ve used it as a shield against tackling malicious behaviour. In the December 2019 negotiations with the Trump administration over passing the USMCA, House Speaker Nancy Pelosi unsuccessfully tried to remove the deal’s liability-limiting language. Meanwhile, U.S. corporate giants like IBM and Disney have lobbied to limit Section 230 domestically, or the inclusion of similar provisions in trade deals.

Lawmakers in other countries are also looking at USMCA as an example of what to avoid. In February, British MP Damian Collins—a key member of the international grand committee of parliamentarians examining online platforms—said he would urge the U.K.’s Conservative government not to allow Section 230-like provisions in any post-Brexit trade deal with the U.S. 

Twitter declined to comment on the USMCA safe-harbour provisions or Ottawa’s regulatory proposals. Alexandra Klein, a Google Canada spokesperson, directed The Logic to an April 2019 blog post where a company government relations executive wrote the deal “allows for platform-based trade, and also empowers internet platforms to combat harmful content online and fight piracy.”

Gift the full article

“We applaud the efforts of the U.S., Mexican, and Canadian governments in finalizing this agreement, which sets a global standard for addressing the challenges of the digital economy,” said Meg Sinclair, head of communications for Facebook Canada.  

Candeub doesn’t believe limiting or changing platform immunity will necessarily damage internet freedom, as some tech groups have suggested. “You could say it’s really important for smaller firms [to] develop without the fear of litigation,” he said. “[But] at this point, it really seems to be just a question of whether Big Tech will have more liability or not.”

#Charlie Angus #CUSMA #Facebook #Google #Michelle Rempel Garner #Section 230 #Twitter #USMCA

Sponsored Content

The road to risk-smart regulation

By Deborah Aarts

Why cybersecurity needs to match pace with AI

By Jessica Aftimus Rosa

How to shift your workforce from AI experimentation to adoption

By Jessica Aftimus Rosa
Paid promotional content

Loading...

Thanks for sharing!

You have shared 5 articles this month and reached the maximum amount of shares available.

Close
This account has reached its share limit.

If you would like to purchase a sharing license please contact The Logic support at [email protected].

Close
Want to share this article?

Upgrade to all-access now

Close
Gift the full article!

You have gifted 0 article(s) this month and have 5 remaining.

Copy link and gift
Copy Link
Email to a friend
Send Email
Gift on Social Media

Recipients will be able to read the full text of the article after submitting their email address. They will not have access to other articles or subscriber benefits.

Deputy Prime Minister Chrystia Freeland and USMCA lead negotiator Steve Verheul appear before the House of Commons trade committee in February 2020.

Photo: THE CANADIAN PRESS/Adrian Wyld

Most Popular This Week

A man in glasses and a blue knit sweater outdoors on a city street, with brick buildings softly blurred behind him
The Big Read

Beacon is building an AI empire by fixing Main Street’s software

By Murad Hemmadi
A photo of a blue roadside billboard taken in the rolling country of southern Alberta. The sign says, "Vote Option 2; Send Ottawa a Message." There is a transport truck speeding into the right side of the frame, with two grain silos beyond it.
The Big Read

Alberta’s referendum is just the start of the turmoil

By Meghan Potkins
A close-up image of the Cohere logo on a black and red background.
News

Cohere plans to acquire cyber startup Aisle and set up a new security division

By Catherine McIntyre
A shot of a freight truck passing beneath a gantry that bears signs directing traffic through the Port of Belfast.
News

A tech firm born from post-Brexit trade chaos sets its sights on Canada

By Joanna Smith

In-depth, agenda-setting reporting

Great journalism delivered straight to your inbox.

A shot taken through laboratory equipment of a researcher injecting liquid into a tube. The worker is wearing blue, latex gloves, and is a white lab coat with the VIDO logo on it.
News

Panel decries Canada’s chaotic way of funding world-class science

By David Reevely

Briefing

AI is pushing insurers to become asset managers, Canadian CEOs say

By Anita Balakrishnan   |   Oct 20, 2026 | 3:17 PM ET

Trump administration faces lawsuit over 50% tariffs on Canadian goods

By Joanna Smith   |   Oct 20, 2026 | 3:05 PM ET

Canada-U.S. trade war to reduce real GDP by 1.4% over 2024 levels after five years: PBO

By Joanna Smith   |   Oct 20, 2026 | 2:48 PM ET

Best business newsletter in Canada

Get up to speed in minutes with insights and analysis on the most important stories of the day, every weekday.

Exclusive events

See the bigger picture with reporters and industry experts in subscriber-exclusive events.

Membership in The Logic Council

Membership provides access to our popular Slack channel, participation in subscriber surveys and invitations to exclusive events with our journalists and special guests.

Recent Popular Stories

News

A tech firm born from post-Brexit trade chaos sets its sights on Canada

By Joanna Smith   |   Oct 13, 2026
A shot of a freight truck passing beneath a gantry that bears signs directing traffic through the Port of Belfast.
Commentary

Carmichael: Canada needs tax reform. Carney shouldn’t make it up as he goes along

By Kevin Carmichael   |   Oct 17, 2026
The Big Read

Beacon is building an AI empire by fixing Main Street’s software

By Murad Hemmadi   |   Oct 19, 2026
A man in glasses and a blue knit sweater outdoors on a city street, with brick buildings softly blurred behind him
News

Anthropic revealed as client for EverWind’s $10B Nova Scotia data centre

By Catherine McIntyre   |   Oct 16, 2026
News

Tech firms want AI models to create better versions of themselves

By Murad Hemmadi   |   Oct 14, 2026
The Big Read

Alberta’s referendum is just the start of the turmoil

By Meghan Potkins   |   Oct 17, 2026
A photo of a blue roadside billboard taken in the rolling country of southern Alberta. The sign says, "Vote Option 2; Send Ottawa a Message." There is a transport truck speeding into the right side of the frame, with two grain silos beyond it.

Canada's most influential executives and policymakers are reading The Logic

  • CPP Investments
  • Sun Life Financial
  • C100
  • Amazon
  • Telus
  • Mastercard
  • bdc
  • Shopify
  • Rogers
  • RBC
  • General Motors
  • MaRS
  • Government of Canada
  • Uber
  • Loblaw Companies Limited
logic-logo

Canada's Business and Tech Newsroom

100% human-crafted journalism

Newsroom

  • News Tips
  • AI Policy
  • Editorial Disclosures
  • Story Pitches

Company

  • About Us
  • Terms of Service
  • Privacy Statement
  • Corporate Information

Contact

  • Contact Us
  • Advertise
  • FAQs
  • Work at The Logic

© 2026 The Logic Inc. All Rights Reserved.

Trusted by leaders

Error

Account creation failed.

Please email us at [email protected].

Create Account

[wppb-register form_name=”cozmo-registration-form-for-modal”]

I do have an account
Login
or

[wppb-login]

I don’t have an account