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You have to be a part of a Steam Family to share games with the other members of it.
This is to prevent abuse of the system via "renting out" libraries for achievements and whatnot, which is exactly what was happening with the Poker Night games for example.
You dont. You no longer can share with people from other countries.
Everyone in a Steam Family has to be from the same country and have their store set to the same region.
Its meant for close FAMILIES, not "friends" in other countries.
If you live in 2 countries for equal amount of times select one of them as your "default" and set both of your accounts to that region. Then you can enter a Steam Family with both of your accounts.
Cheaper games.
I mean, if he really lives in both countries whats stopping him from setting both accounts to the cheaper region? Unless that story is not true of course.
But who would lie about something like that.
The new system is trying to be a PITA for people trying to abuse it.
Thank the people who abused that function and used it to sell access to "cheap" games.