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US slams Australia’s streaming quotas, PBS in new list of trade grievances
Michael Koziol - April 1, 2026
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Washington: The Trump administration has outlined serious concerns about the Albanese government’s new local content rules for streaming platforms and the “unfair” Pharmaceutical Benefits Scheme, in an escalation of US trade grievances against Australia.
The United States Trade Representative’s annual report, released on Tuesday evening (US time), adds several items to the list of trade “barriers” with Australia, chiefly concerning government interventions in the market that would largely impact American tech companies.
Of particular concern to President Donald Trump’s top trade officials is Labor’s move last year to require major streaming services to invest at least 10 per cent of their total Australian expenditure, or 7.5 per cent of Australian revenue, on local drama, documentary, children’s or arts content.
“US industry has expressed concern that the measure employs a narrow, outdated definition of Australian content and will distort important investment and production decisions,” the trade report said. “The United States has raised serious concerns regarding this issue and continues to monitor it.”
The report noted the US’ goods trade surplus with Australia decreased nearly 75 per cent in 2025 to $US4.6 billion ($6.65 billion), while the services trade surplus shrank by 5.5 per cent.
It also introduced a new section on the PBS, based on complaints from the US pharmaceutical industry that Australia “significantly undervalues American innovation through unfair drug pricing practices”.
Canberra was accused of using “slow and outdated monetary thresholds in its valuation process, leading to artificially low prices for innovative therapies” when setting prices for new medications.
Furthermore, it criticised the PBS for mandating price cuts for new drugs after a certain period if no generic or biosimilar competitor entered the market.
“These price cuts are applied without considering inflation, production costs or the ongoing therapeutic value of the medicine,” the USTR report said.
“Furthermore, Australia’s Risk Share Arrangements (RSAs) – with expenditure caps and a clawback mechanism, requiring drug manufacturers to reimburse the government for up to 100 per cent of expenditures exceeding the cap – shift financial risks to the manufacturers, including US pharmaceutical companies.”
Trump has accused other countries of free-riding on American innovation with subsidy schemes that cut the costs of medication, and demanded American consumers are offered the same prices as people elsewhere.
The Australian government has acknowledged the shift in US policy under Trump, saying it is in talks with the administration but pledging to protect the PBS.
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