Why would they watch it then? Why would it be available on Canadian cable and satellite services if there was not market for it or for it’s particular brand of ‘news’? Personally, even had your OP been accurate I’d say that the fact that some non-zero number of Canadian’s in fact DO watch Fox News pretty much means that blocking new ‘Fox-Style News to Canada’ is at best a moot point (at worst, of course, this was a complete distortion and predicated on ignorance of the fact that Fox is already available in Canada). In fact, I’d think that Canadian’s, yearning for a Fox-Style News organization of their very own, would be a bit pissed, since it means that US Fox maintains a monopoly on this brand of news.
I think it’s a very bad idea for the government to get involved in the truth game and try to regulate what is ‘fair’ and ‘balanced’. Basically, if people want what Fox has to offer then let them have it. If people want midget porn then let them have that. If they want to howl at the moon and believe in the 9/11 Truth movements brand of BS, then let them have that.
Of course, Canadian’s are free to implement such a program if that’s what they really want. However, based on the fact that some Canadian’s do in fact watch Fox and will continue to do so unless you erect a Great Firewall of Doom, it seems sort of silly to block like minded Canadian’s the opportunity to build their own right wing spin machine, if that’s what they really want. I mean, if Canadian’s really don’t want such a thing then won’t they vote with their pocketbooks??