• The Motion Picture Association (the US film industry trade association) sponsored a workshop on the current state of the audiovisual sector in March at the WTO offices in Geneva. The purpose obviously was to encourage member countries to support the proposal to include the a/v sector within the disciplines of the GATS. The workshop, attended by a large number of delegates from many countries, concluded with a lavish reception.

  The outcome of this activity was the creation of an informal committee of WTO delegates that supports the U.S. view. India is a key member of the committee, as its officials believe India's film industry will benefit from liberalized trade rules.

  In response to this activity, several organizations, including INCD member Eurocinema, the European Broadcasting Union and others, will hold a seminar at the WTO on July 4. This meeting will present another view of the a/v sector, emphasizing the need for continuing regulation and the challenges of promoting cultural diversity in an era of convergence. The seminar will look at technology and the economics of the sector using the UK and Korea as examples. It will conclude with a presentation by Fritz Pleitgen, Chair of Germany's ARD, on the topic Cultural diversity and pluralism, the European audiovisual model.

• Meanwhile, discussion of the US proposal on audiovisual services has begun. At a seminar organized by INCD member the Voice of the Listener and Viewer in London on June 7, a European Commission official stated that the US proposal is "an attack on content rules and subsidies" in broadcasting and film.

  Switzerland has also tabled a proposal on a/v services that was put forward as a compromise position between the EU and the US. Unfortunately, by advancing the proposal and thus accepting that a/v service should be negotiated, they have weakened the position of those who believe that a/v services should continue outside GATS disciplines.

  The EU response to the US proposal may also be problematic. The same Commission official argued there was a need to separate the discussion of content from the discussion of carriage. Under this approach, the EU may consider further liberalization of distribution systems that carry programming, while preserving regulation of content.

  However, this approach may backfire. A number of countries have mature television production industries but at the same time do not have strong film industries. This distinction arises because control of the distribution systems is controlled locally in the case of television, but not in the case of films. Content can be regulated more easily when the distribution system is controlled than when it is not.

  Canadian communications theorist, Marshall McLuhan, argued many years ago, "the medium is the message." He was the first to recognize that the convergence of the electronic media would blur distinctions between different media, between the consumer and the provider of material, and between the distributor and content.

• The regulation of the audiovisual sector is under direct attack from the US GATS proposal. But, regulation in all cultural sectors is indirectly under attack in discussions on e-commerce, telecom and others. Now comes word that the informal executive council of the WTO, the so-called Quad group of countries (US, Japan, EU and Canada) is discussing the issue of computer software.

  The US and Japan take the view all software should be covered as a service, with trade rules as liberal as those contained in the GATT. This would preclude all regulation of the sector. The EU points out that books, magazines, movies, and information programs are now routinely made available electronically in forms that are increasingly analogous to computer software.

  As a consequence, the EU points out that liberalizing trade in all computer software programs could prejudice efforts to promote indigenous content and maintain cultural diversity. They argue for a definition that limits the software discussion to computer operating systems and communications programs.

  Canada was strangely silent on the issue as a consequence of what a government trade official has said is a "schizophrenic" view of the issue. On the one hand, Canada's software industry supports the position of the US and Japan, on the other hand, Canada is acutely aware of the negative consequences for cultural content.

Garry Neil,
Coordinator, INCD
13 June 2001

FTAA Draft Released

The draft negotiating text of the Free Trade Agreement of the Americas was released in all four official languages (English, French, Spanish, Portuguese) on July 4, and can now be found at www.alca-ftaa.org. We will send out a brief cultural analysis of the text within the next week. We invite any of you who are particularly interested in this issue to get in touch with us and join us in preparing a more detailed analysis of the FTAA negotiating text later in the summer.

Membership Dues

We are asking all members who can to please pay their membership dues. The work of the INCD is increasing and we need the support of our members to achieve our goals. As a member you are able to take advantage of the reduced conference fees for Lucerne until July 27. Please remember to address all cheques and money orders to the Canadian Conference of the Arts.

Upcoming events relating to Cultural Diversity: