DATE 12/31/03

 


 



 

 

 

 



The audiovisual sector after 2000 is significantly different from the audiovisual sector before when negotiations focused primarily on film production, film distribution, and terrestrial broadcasting of audiovisual goods and services.

 

DATE 00/00/00

 


 
 


New technologies have given consumers worldwide access to a multitude of entertainment and information services and have stimulated the growth and development of audiovisual services and products from around the globe. Digital compression is providing less expensive means of creating audiovisual works while broadband capacity is opening opportunities for lower-cost distribution. The audiovisual sector today includes an international array of content producers and program packagers utilizing not just traditional single channel broadcasting, but new media, such as cable, Direct to Home satellite, and digital networks to distribute content locally and also internationally.

At the same time as new technologies have transformed the audiovisual sector, the audiovisual sector is playing a role in fostering new technologies. Electronically delivered audiovisual products and services, for example, which increase use of the network, are helping to create an environment that will encourage investment in the digital networks of tomorrow. The role of commercial entertainment in the creation and maintenance of advanced telecommunications infrastructure in turn benefits the development and distribution of local culture.

The debate over the audiovisual sector in the WTO, whose four cornerstones - the GATT, the GATS, TRIPs and dispute settlement -- apply to the audiovisual sector, has sometimes been framed as an "all-or-nothing" game. Some argue as if the only available options were to exclude culture from the WTO or to liberalize completely all aspects of audiovisual and related services. Presenting such stark options obscures a number of relevant facts.
First is the fact that business and regulatory considerations affect the ability to make and distribute audiovisual products, both to domestic and foreign audiences. Creating audiovisual content is costly, and commercial success is uncertain. Access to international markets is necessary to help recoup production costs. Predictable and clearly defined trade rules will foster international exhibition and distribution opportunities and provide commercial benefits that audiovisual service providers must have to continue their artistic endeavors. Second, the argument implies that because the audiovisual sector may have special cultural characteristics, the sector should not be subject to the trade disciplines imposed on other service sectors. Such an argument neglects that other sectors also have unique characteristics for the purpose of fulfilling important social policy objectives and that the GATS has shown the flexibility to accommodate such specific concerns. For example, regulators were given exceptional discretion to take prudential measures to ensure, inter alia, the integrity of their financial system. Similarly, in the basic telecommunications Reference Paper, regulators insisted that the vital goal of providing universal service could not be sacrificed in the name of trade liberalization.

The choices are not, nor have they even been, a choice between promoting and preserving a nation's cultural identity and liberalizing trade in audiovisual services. Especially in light of the quantum increase in exhibition possibilities available in today's digital environment, it is quite possible to enhance one's cultural identity and to make trade in audiovisual service more transparent, predictable, and open. Indeed, as indicated in the above discussion on the role of the new audiovisual sector in helping to attract investment for advanced infrastructure, the two objectives may reinforce each other.

GATT provides a special, and unique, exception for cinematic films to GATT national treatment rules. In 1947, in recognition of the difficulty that domestic film producers faced in finding adequate screen time to exhibit their films in the immediate post-World War II period, GATT founders authorized continuation of existing screen-time quotas. It is worth noting that the scarcity of outlets available to local film producers to exhibit their films has in large part been alleviated by multiplex cinemas and multichannel TV, and will be further aided in the digital Video on Demand context.
Today, in the WTO, when governments schedule commitments for audiovisual, or for any service sector, they have the flexibility to make full or partial commitments, should they so desire. Even when countries take commitments, they may continue to regulate services covered by commitments, so long as the regulation is not administered in a way that represents an unexpected trade barrier.
Additionally, in both the GATS and GATT, the general exception for measures necessary to protect public morals provides further reassurance for Members concerned that commitments relating to content mean that they will not be able to apply regulations intended to preserve public morality.
Finally, in its current form, the GATS does not prevent governments from funding audiovisual services, a sensitive issue for many Members where local theatrical film production, for example, is dependent on government support. While the GATS provides for future negotiations to develop disciplines on subsidies that distort trade in services, there is no presupposition as to what those provisions will contain.

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