U.S. Officials Discussed Canadian Trade Sanctions Over Quebec’s Bill 96 Language Law
Bill 96 has sparked significant debate and concerns about its effects on trade between the U.S. and Canada. It could potentially impact U.S. exports to Canada and violate trade agreements.
According to CBC News, U.S. government officials have privately discussed the possibility of imposing trade sanctions on Canada in response to Quebec’s Bill 96 language law. Documents obtained under the U.S. Freedom of Information Act (FOIA) reveal that implementing Bill 96 could result in fewer American products being exported to Canada, not just Quebec.
Officials from the Office of the U.S. Trade Representative (USTR) have debated whether Quebec’s Bill 96, which includes provisions affecting commercial signs, trademarks, and product labels, violates trade agreements between the U.S. and Canada. They have considered whether these restrictions constitute a technical barrier to trade, a breach of intellectual property rights, or a violation of Section 301 of the Trade Act, which could justify trade sanctions.
However, the USTR’s talking points for the January meeting with Canadian officials did not mention trade sanctions, but they did address concerns about Bill 96.
Quebec’s Bill 96 is a legislative measure introduced by the government to strengthen French language laws in the province. It was given final approval on June 1, 2022, and aims to promote the use of French in various aspects of public life and commerce.
Key provisions of this bill include stricter regulations on the use of French in commercial signage, trademarks, and labeling. Businesses must comply with these new requirements by June 2025.
The legislation has sparked debate about its impact on trade and whether it conflicts with federal laws and international trade agreements.
The International Trademark Association (INTA) has been actively urging the U.S. government to address Bill 96 with Canada and consider trade sanctions. During a December 2023 meeting, executives from major corporations expressed their concerns about the law.
The documents obtained by CBC News, which cover the period between November 2022 and January 2024, do not indicate if a conclusion on trade sanctions has been reached. But, during a January meeting between Canadian and American trade officials, USTR’s Deputy Press Secretary, Catherine White, implied concerns about Bill 96.
Jean-Pierre Godbout, spokesperson for Global Affairs, stated that the Canadian government is closely monitoring the situation and has communicated concerns to the Government of Quebec.
"The Government of Canada is aware of the concerns expressed by various stakeholders regarding Quebec's amendments to the Charter of the French Language as modernized under Bill 96 and accompanying regulations," Godbout stated. "We have shared these concerns with the Government of Quebec and continue to closely follow developments."
A coalition of businesses and trade associations has warned that Bill 96 could limit product availability in Canada, potentially leading to higher prices and fewer options for Canadian consumers. The USTR noted that while Canada is responsible for trade agreements, Bill 96 is a provincial law. However, pressure from Washington could force the Canadian federal government to act.
An international business law practitioner, Mark Warner, mentioned that Bill 96 is not currently a top trade conflict between Canada and the U.S. but advised keeping an eye on the situation. Eliane Ellbogen, a trademark law expert, noted that Bill 96 conflicts with federal trademark law and mentioned that a possible constitutional challenge is being studied.
We’re closely monitoring the story and will continue to share updates. For more information and expert insights on how Bill 96 might affect your business, contact one of our trade professionals.