Canada and Culture: Can Current Cultural Policies Be Sustained in the Global Trade Regime?
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Canada and Culture: Can Current Cultural Policies be Sustained in the Global Trade Regime? Glenn A. Gottselig A Thesis Submitted in Conformity with the Requirements for the Degree of Master of Laws, Graduate Department of the Faculty of Law University of Toronto O Copyright by Glenn A. Gottselig, 1999 National Library Bibliothèque nationale la1 dcanacia du Canada Acquisitions and Acquisitions et Bibliographie Services services bibliographiques 395 Wellington Street 395. rue Wellington OttawaON KlA ON1 Ottawa ON K1A ûN4 canada canada The author has granted a non- L'auteur a accordé une licence non exclusive licence allowing the exclusive permettant à la National Library of Canada to Bibliothèque nationale du Canada de reproduce, loan, distniute or sell reproduire, preter, distribuer ou copies of this thesis in rnicroform, vendre des copies de cette thèse SOUS paper or electronic formats. la forme de microfiche/film, de reproduction sur papier ou sur format électronique. The author retains ownership of the L'auteur conserve la propriété du copyright in this thesis. Neither the droit d'auteur qui protège cette thèse. thesis nor substantial extracts fiom it Ni la thèse ni des extraits substantiels may be printed or otherwise de celle-ci ne doivent être imprimes reproduced without the author's ou autrement reproduits sans son permission. autorisation. Canada and Culture: Can Current Culturai Policies be Sustained in the Global Trade Regime? Master of Laws, 1999 Glenn A. Gottselig Graduate Department of the FPculty of Law, University of Toronto Abstract This thesis examines certain examples that are representative of the Canadian federal government's current fiamework supporting the Canadian cultural industries with a view to deterrnining whether these policies can be maintained with the global trading regime- These policies are examined in light of the relevant provisions of the GATT, the GATS and the NAFTA, as well as the proposed Multilaterai Agreement on hvestment. Three cases are investigated including: the provisions of the agreement between Canada and the United States resolving the magazine dispute; the CBC proposals to the CRTC conceming the fiiture of the CBC; and the recommendations regarding the Canadian film industry put forward by the Feature Film Advisory Committee. The investigation of these cases reveals that current Canadian cultural policies may be coming perilously close to violating Canada's commitments to trade under the international agreements. Prior to the analysis of the above cases, current policies and programs within the periodical publishing, film and video and public television broadcasting industries are examined so as to provide a context for the analysis of the above cases. Acknow ledgements I would Iike to acknowledge the assistance of Michael Trebilcock, who acted as my supervisor for this project, dong with that of his assistant, Margot Hall. 1 am particularly grateful for Professor Trebilcock's insightfid comments, which allowed me, initially, to constnict a bework for the discussion, but also later on, allowed me to maintain my focus on the important issues. 1 would also Iike to thank Associate Dean (Graduate Studies) Brian Langille, and Administrative Assistant to the Graduate Programme, Julia HaIl, for their assistance on various matters that arose over the course of the year. Finally, I would like to thank my parents, Albert and Miriam, dong with my uncle, Gabriel, for each of their contributions, financid and otherwise, without which the year would have been very difficult. 1 would like to thank each of them, in particular, for engaging me in discussions, which have helped me to fashion my own views on many issues, some of which are presented in this project- Table of Contents Chapter 1 Canadian Culture * 1 -1 Introduction .................................................................................................................. -3 1 -2 The Notion of Culture ................................................................................................... 4 1.3 Contemporary Approach to the Classification of Cultural Activities ........................... 8 1.4 Canadian Federal Govenunent Approach to Culture................................................. 11 1 -5 The Canadian Culturai Industries .............................................................................. -22 f -6 Canadian Culture and the United States ..................................................................... 25 1.7 Concfusion ............................ ....... .......................................................................... 29 Chapter 2 Current Canadian Cultural Poücy 2.1 Introduction ................................................................................................................. 30 2.2 Film and Video ........................................................................................................... 32., 2.2.1 Introduction ............................................................................................................32 2.2.2 Telefilm Canada ..................................................................................................... 32 2.2.3 National Film Board of Canada ........................................-............................ -.36 2.2.4 Canada Council for the Arts .................................................................................. 39 2.2.5 Department of Canadian Heritage ........................................................................ -40 . 2.3 Television Broadcasting............................................................................................. -45 2.3.1 Introduction .......................................................................................................... ..45 2.3.2 The Canadian Radio-television Telecommunications Commission (CRTC) ........46 2.3 3 Broadcasting Quotas .............................................................................................. 19 2.3.4 Program Subsidies ................................................................................................. 51 2 3.5 The Canadian Broadcasting Corporation (CBC) ....... ........................................... -58 2.4 Periodical Publishing .................................................................................................. 64 2 .4.1 Introduction ........................................................................................................... -64 2.4.2 Legislative OveMew ....................................................................... ............. -64 2.4.3 Incarne Tax Acr, Section 19 ................................................................................... 66 2.4.4 Investment Restrictions ................ .... ................................................................ 68 2.4.5 Other Measures ........................ ..... ................................................................... 71 2.4.6 Bill C-55 and the US.-Canada Agreement Respecting Penodicals ..................... -72 2.5 Conclusion .................................................................................................................. 75 Chapter 3 The Treatment of Culture Under International Agreements 3.1 Introduction............................................................................................................ 78 3 -2 The NAFTA .......................................................................................................... -79 Table of Contents .continued 3 -3 The GATT and GATS .......................... .... ......................................................85 3 .3.1 The GATT 1 947..................................................................................................... 87 3 -3-2 The GATT 1 994 and GATS ................... ,., ...................................................... 91 3 -4 The Multilateral Agreement on Investment ........................................................... 96 3 -5 Conclusion ........................................................................................................... 103 Chapter 4 Analysis of Current Canadian Cultural Poiicy Initiatives in the Context of International Agreements Introduction .......................................................................................................... 106 The CBC and the Future of Canadian Public Broadcasting ..................... ..... ... 108 Introduction ........ ,., ....... ........................................................................................ 108 Background ........................................................................................................ 111 The CBC Response to the CRTC's Review of Canadian Television Policy ....... 115 The CBC's Strategic Plan .................................................................................... 118 Analysis of the CBC's New Direction under the GATS ..... .. .............................. 121 Conclusion ........................................................................................................... 124 The Feature Film Advisory Cornmittee and Canadian Film ................................ 125 introduction.................................................................... 125 Background .......................................................................................................... 129 The Recornrnendations of the Feature Film Advisory Committee ...................... 132 Analysis of the Cornmittee's Recomrnendations under the GATS and an International