(a) Alternates is included under other categories in the 1972, 1979 and 1987 columns. (b) Totals include pumped storage losses. APPENDIX 4 Additional Question Submitted by the Hon. Robert G. Torricelli for QUESTION As you know, Canada is escalating its efforts to restrict U.S. firms in the cultural sector. The Canadian Government has threatened to impose a restrictive licensing regime for the distribution of films in Canada, an action which could set a trend for other countries and do further damage to our balance of trade. I understand that the Canadian Government is preparing to expropriate the Canadian subsidiary of an American book publishing company in the name of cultural sovereignty, simply because that subsidiary was acquired as part of a transaction occurring in the United States. This is disturbing news, especially since the cultural sector was deliberately omitted for the Free Trade Agreement. What is the Administration prepared to do, in light of these developments, to send a strong signal to prevent these expropriations and rigid licensing schemes? RESPONSE Although the Canadian Government did consider imposing a restrictive licensing regime for the distribution of films in Canada, that proposal was eventually dropped and a less restrictive policy proposed instead. The Canadian Government does maintain a publishing policy which discourages the sale of publishing concerns Canada to non-Canadians, although it has not yet been implemented to the detriment of U.S. interests. in The U.S. recognizes the sensitivity to Canada of fostering its unique cultural heritage. Therefore, certain cultural activities were exempted from the provisions of the U.S.-Canada Free Trade Agreement (FTA). These activities include the publication, sale, distribution or exhibition of: books, magazines, and newspapers; film and video recordings; audio or video music recordings; and also radio, television and cable dissemination. However, at the same time, the FTA attempts to ensure that Canadian policies do not constitute a discriminatory barrier to U.S. trade. We believe we achieved a substantial improvement in Canada's treatment of U.S. commercial interests in the cultural area. Tariff elimination (e.g., videos, records, printed material), improved investment provisions, and copyright protection for retransmissions are all included in the FTA. In addition, if Canada should in other respects implement restrictions in the future to the detriment of U.S. cultural industries, the FTA allows the U.S. to take measures of equivalent commercial effect in accordance with the Agreement. The recognition of the right to take countermeasures should serve as a disincentive to the use of the cultural exception for measures that, although nominally cultural, could have significant commercial effects. |