MEDIA RELEASE
FOR IMMEDIATE RELEASE
June 30, 1997

WTO Magazine Ruling is a Body-Blow to Canadian Culture

(OTTAWA) The World Trade Organization today upheld an earlier ruling that found Canada's tax on split-run magazines in violation of international trade agreements and ordered Ottawa to comply with the decision within 18 months. The United States is expected to use the WTO decision to challenge a whole range of cultural protections.

"This decision is a real blow to Canadian culture and shows us clearly what's wrong with these trade agreements," said Maude Barlow, chairperson of The Council of Canadians. "Fundamentally, these agreements are about protecting the rights of investors and nothing else. Our right to protect and nurture our own cultural expression is sacrificed. Culture is treated only as a commodity like any other."

In 1995, in order to protect the Canadian magazine industry, Ottawa imposed an 80 per cent tax on split-run magazines, U.S. publications reprinted in Canada with only a few pages of Canadian content added. The American government appealed the tax before the WTO which earlier this year ruled in favour of the U.S. position.

"The Liberal government has shown an appalling lack of leadership on this issue," said Barlow. "They've put little effort into the appeal and just seemed to sleepwalk through the whole mess. Meanwhile, they're busy negotiating a Multilateral Agreement on Investment that will open up even more challenges to Canadian content regulations. Nobody is standing up for Canada's creative community."

The Council of Canadians is a national, non-partisan, public interest group with more than 90,000 members dedicated to strengthening our social programs, protecting citizens' rights, promoting Canadian culture, preserving the environment, and advocating alternatives to corporate-style free trade.

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