NEWS RELEASES

2006 - 2005 - 2004 - 2003 - 2002 - 2001 - 2000 - 1999 - 1998 - 1997 - 1996

Print friendly version - Printing Tips

CANADA REAFFIRMS ITS COMMITMENT TO CANADIANMAGAZINES IN WTO TRADE DISPUTE

June 30, 1997 No. 111

CANADA REAFFIRMS ITS COMMITMENT TO CANADIAN

MAGAZINES IN WTO TRADE DISPUTE

Minister for International Trade Sergio Marchi and Canadian Heritage Minister Sheila Copps today expressed their continued commitment to maintaining a distinctly Canadian magazine industry after receiving the results of the final report of the World Trade Organization (WTO) on Canadian measures to promote the magazine industry.

The WTO Appellate Body ruled against Canada on its appeal of the excise tax measure, while supporting the United States in its arguments against the postal subsidy.

"We've just received the ruling and will have to look at it carefully to assess our options," said Ms Copps. "Obviously, we'll be looking at new ways to attain our policy objectives that are consistent with the WTO ruling. We recognize the importance of advertising revenues to the industry. This industry must continue to exist and to provide a dynamic forum for the expression of Canadian ideas and interests."

The federal government has been working in close consultation with the Canadian magazine industry throughout the WTO process.

"I know that Canadians expect us to achieve the right balance between trade and cultural objectives," said Mr. Marchi. "Although we are disappointed by this ruling, we recognize the value of being part of a rules-based system which has served Canada well. However, Ms. Copps and I will continue to work closely together, in co-operation with the industry, to ensure the achievement of our shared objectives."

The appeal follows a decision in March in which the WTO ruled on four Canadian measures relating to magazines. At that time, the WTO panel decided against Canada on three of the measures: Canada's Tariff Code 9958, which prohibits the importation of split-run magazines; Part V.1 of Canada's Excise Tax Act, which places an 80 per cent excise tax on advertising placed in split-run magazines circulating in Canada; and the commercial publications mail rates, which differentiate between domestic and foreign mail rates.

In that March decision, the panel ruled in Canada's favour on maintenance of the postal subsidy program, which allows certain Canadian periodicals to reach their subscribers at lower rates. This decision was appealed by the United States. Canada appealed the negative ruling on the excise tax, arguing that the General Agreement on Tariffs and Trade should not apply to measures affecting advertising services.

Both ministers stressed that the WTO decision does not suddenly change the rules of business in the Canadian magazine sector, and that only the Parliament of Canada has the power to make or amend legislation. Canada's rules and regulations governing magazine advertising in Canada remain in force, and foreign publishers must continue to abide by them.

- 30 -

For further Information, media representatives may contact:

Janet Bax

Director of Communications

Office of the Minister of Canadian Heritage

(819) 997-7788

Charles Larabie

Director of Communications

Office of the Minister for International Trade

(613) 992-7332

Media Relations Office

Department of Foreign Affairs and International Trade