preview

Canadian Magazine Dispute Case Study

Better Essays

The Canadian magazine dispute
In the late 1990s, the Canadian government instituted a taxation measure aimed at protecting domestic magazine producers. The dispute was triggered by the publication of a Canadian edition of Sports Illustrated that was produced in the U.S.A. but printed in Canada, thereby circumventing existing regulatory provisions. The United States instituted and won a World Trade Organization (WTO) dispute settlement case against the tax, after which a series of alternate measures and counter-measures were explored by the two countries. A negotiated settlement was reached in 1999.
Little original material is readily available on the antecedents and subsequent impacts of the dispute. Accordingly, it is difficult to make empirically-based …show more content…

producers. Within a trade context, dumping refers to exporting at predatory prices.
Canada has a long history of assertion of the importance of its cultural heritage and steps to assure its preservation. This includes (Marsh, 2006):
• The establishment of a Royal Commission of inquiry on radio broadcasting in 1928, which recommended a state-owned system capable of interpreting and nurturing national citizenship;
• A 1951 Royal Commission on national development in the arts, letters and sciences and a 1957 Royal Commission on broadcasting, both of which identified a need to be proactive in preserving national culture “particularly in the face of American encroachments” (16th paragraph);
• A 1961 Royal Commission on publications, which focused on the magazine industry and described that industry as “… part of our national heritage, reflecting something else than our concern for the market place"(16th paragraph);
• Royal Commissions on book publishing (1972) and newspapers (1982) and parliamentary proceedings on the mass media and cultural policy in 1970 and 1982 respectively.
• Formal identification of culture as a third pillar of Canadian foreign policy, alongside security and economic prosperity, by the Canadian Government in …show more content…

An unidentified paper from Canada’s Simon Fraser University (SFU, n.d.) notes that a 1994 Magazine Task Force established by the Canadian government:
• Estimated that 53-70 other cases similar to the Sports illustrated one could follow, threatening 40% of the revenues and 85% of the operating profits of Canadian magazine publishers; and
• Found the Canadian edition of Sports Illustrated to be charging only half of the advertising rates in Canada that it charged in the U.S.A., potentially constituting dumping, though this would be subject to legal interpretation.
A parliamentary task force in 1999 estimated that more than 100 cases similar to the Sports illustrated one could follow (Levin, n.d.).
This simply illustrates the multi-dimensional nature of disputes such as this, which embody a wide range of interests that require balancing. Perhaps more important than attributing the relative extents of different motivations is the question as to the extent to which an organization such as the WTO is, in pragmatic terms, not just on paper, really empowered and has the capacity to address factors other than the economic and financial; or whether these take precedence because of the nature of the adjudication

Get Access