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
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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
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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
The recent Canadian Radio-television and Telecommunications (CRTC) (2013c) 'Broadcasting Regulatory Policy on the Distribution of Canadian Category C national news speciality services' marks a new regulatory approach to distributing competitive news and sports programming in Canada. This policy is a response to Canadians' concerns over consumer choice due to program bundling and an inability to select news and sports programs on a stand-alone basis (CRTC, 2013c; CRTC, 2014). Based on the Commission's public notice on 'Regulatory Framework for Broadcasting Distribution Undertakings and Discretionary Programming Services', the new regulation demonstrates an effort to reduce national news and sports program regulations and to
In order to survive, such a small market needs to vehemently protect their interests at all costs or suffer being swallowed up by their foreign competitors. In the case of true cultural protectionism I believe that local governments should have the right to protect their constituents best interests and enable protections for that industry. Unfortunately, since it really does only affect a small number of magazines published in Canada I believe that the Canadian people have made it abundantly clear that the purely Canadian publications are not as important to them as the government would let
To what extent do you think the government of Canada was pressured to seek to protect its market because of the financial interests of the Canadian magazine industry?
The U.S.-Canadian magazine dispute was undoubtedly motivated by Canadian protectionism of their own culture. The source of the problem was Sports Illustrated Canada, a split-run magazine publisher, was producing material in the United States and sending it electronically to Canada so it could be printed as a Canadian periodical. The fact that Sports Illustrated Canada was rendered as Canadian rather than American allowed the periodical to offer tax deductions to Canadian advertisers, in turn taking away from the potential advertisement revenue available for other Canadian periodicals. The only reason this became a problem was because the originally Canadian periodicals couldn’t compete with the prices offered by the American magazines that
I think there is fairness in extra levy for foreign magazines to subsidize local publication because, the foreign magazine
The Canadian Magazine Dispute 1. — In order to maintain local cultural material being sold in Canada, Canadian legislature had to put a halt to constant import of magazines to encourage Canadian newsstands to have enough of their own. More then 90 percent (globalization101.org., 20??) of Canadian magazines were imported from other areas around the world. As thought in this lesson, media is a major cause of local neglect.
4. And, if Canadians seem to prefer buying American magazines, shouldn't they be allowed to "vote" with their purchasing habits? Like anything worth preserving, or worthy of preserving because it links the present to the past; it should be preserve by the government as a caretaker of the country. And the caretaker of the national identity.
The Canadian government sees magazines as an important part of their culture and gives Canadians a sense of identity.
Written Assignment Unit 6 Samuel Zeratsion University of People The Canadian Magazine Dispute The US-Canadian Magazine Dispute was strongly motivated by genuine desire to protect foreign or split run publication magazine by the name of “Protecting Canadian culture”. Canadian federal government tried to protect its domestic magazine producers by adding significant new tax law to all advertisement revenue consider being the split-run publication magazine. The government of Canada was pressured to protect its local magazine producer industry market because of the Canadian consumer became interested in buying foreign or split run publication magazine.
Rules revolving around Canadian Content (CanCon) have been set in place since the 1920’s. In 2005, revisions to the 1991 Broadcasting Act were made. Since this revision was made there have been further changes to the Act trying to create the best set of rules for CanCon to be broadcasted (Dewing, 2011). CanCon is an outdated concept that is causing consumers to switch to other forms of media. The CanCon rules cannot determine what is considered Canadian and they cannot keep up with the ever-changing forms of media. Canadian producers are only getting a slim portion of the industry even with the rules in place. Therefore CanCon rules should be totally eliminated.
Canadian government was aware of how powerful print media like magazine can rapidly change the lifestyle and culture of the citizens. The government was mindful about the fact that magazine is one of the easiest way to introduce the citizens to pop culture which in turn will influence the country’s fashion, food, television content and even music. The fear of the government losing the Canadian culture and way of life compelled her in the 1920’s to imposed protective tariffs on foreign magazines and the prohibition of the importation of split-run editions of foreign-published magazines into their
I don’t feel that the government was pressured to protect the financial market in the magazine industry because they only printed about one-tenth of the magazines sold within Canada (Culture and Globalization, n.d.). More pressure would be more understood if their share of magazine productions had been a greater
1. To what extent do you think the U.S.Canadian magazine dispute was motivated by genuine desires to protect Canadian culture? I think the motivation of protecting any domestic cultural value of any country must be respected to protect their own personal rights. In addition, the values of cultural development without implications of any foreign country impose including Canadian cultural value. We have seen the conflicted between Canadian magazines against the foreign trades for many years that struggling to protect their own value because of dominant foreign development. This is one of our generational systemic cultural impacts that overtaking and dominate against other without considerations.
It stands to reason in some remote locations, as in reservations are isolated and may not have access to national television or cable networks. Keeping a Canadian content message is important. In America’s free market approach to media one can gather there are many, many versions of events, including global or otherwise that might be skewed from the facts. It seems to me by pushing American media, potentially political messages onto unsuspecting consumers could and can have drastic effects on ordinary Canadians. On that note, I definitely can see Canadian magazine producers using political pressure on the government. Almost to the point of quid pro quo and politicians bending for those with the power of the pen. But I honestly believe it was more in terms of attempting to keep things fair. In the sense, American magazine producers can manufacture at much below the cost that of Canadian magazine producers, based on economies to scale. As soon as American magazine producer encroach into the Canadian market, it will be next to impossible to push back, taking into account the purchasing habits of ordinary Canadians.
In my opinion, the Canadian government reflected on the negative impact of globalization to the local culture as a treat to them since it kept worsening by each day. Many people argue that the media to which magazine is part is a tool used to threatening the philosophies, politics and economy of nations as well as the freedom of nations. Perhaps the Canadian based on these threatens to develop a genuine desire to protect their culture from all these impunities.