Cultural Protectionism.(globalization and the motion picture industry)(Statistical Data Included)

With globalization has come the progressive dismantling of many formal barriers to trade and investment as well as the establishment of global markets for goods and services. Greater economic interdependence among nations has been coupled with a greater sense of interconnectedness, as information technologies readily convey ideas and images throughout the world. Yet for many groups, the benefits of this integration are countered by perceived vulnerability to foreign influence and control. Citizens, government officials, and journalists in many nations are raising concerns that the globalization of world economies and communications undermines the cultural identity of a local populace.

Common markets have sewed to promote similar behaviors and the pursuit of similar lifestyles among consumers--especially the young--in many corners of the world. This raises fears that the customs, heritages, and traditions of diverse societies are being eroded. Such fears have led to the call for policy objectives and tools to provide cultural safeguards as nations adapt to globalization. Various forms of trade control, including quotas, taxes, and subsidies, have been applied by several countries for the purpose of protecting and nurturing domestic culture.

Advocates of free trade have long contended with protectionism based on economic rationales. Such protectionism was promoted by producers or communities hurt by imports, or calling for the stimulation or subsidization of exports for particular domestic products. Cultural protectionism adds another dimension to trade policy disputes, and will shape the ongoing formulation of international trade and investment regimes. Indeed, one factor that led to the derailment of the OECD Multilateral Agreement on Investment negotiations in spring 1998 was concern over the protection of Europe's cultural industries. The discord focused on the video broadcasting and motion picture industries, where some nations argued that protectionism was necessary to avoid domination by foreign (especially U.S.) productions.

Cultural protectionism reflects one of the growing list of tensions that arise as trends toward marketization around the globe affect the sovereignty of the nation state. Deference to the principles of comparative advantage demands the reduction of barriers not associated with direct costs of production and distribution. As tariffs, quotas, import licensing, and other long visible trade barriers come down, other concerns become more obvious.

In 1947, when the General Agreement on Tariffs and Trade (GATT) was first established, the closest it came to cultural issues was to recognize special circumstances surrounding cinematographic films, allowing some local content quotas (Article IV). Although such film quotas did allow for a minimum proportion of screen time for films of a specified origin, cultural protection received little attention in GATT. This may have reflected the somewhat greater cultural security of the signatory nations in a world that was more culturally segregated than it is today. Now, negotiations surrounding important trade treaties include debates over cultural exemptions and exceptions. This reflects the recognition of the power of trade to shape cultures and the perceived need of countries to raise or preserve barriers against the "intrusion' of foreign cultural goods and influences.

CULTURAL INDUSTRIES, CULTURAL GOODS

While globalization is often associated with the pervasiveness of such brands as Coca-Cola, McDonald's, Nike, and Marlboro, brand loyalty depends on lifestyle choices and the associated images. As Barber (1996) notes, the ability to produce and globally promote images, symbols, and ideologies conveys the power to shape the values and emotional ties underlying consumer choices. Such sectors as film and video, television broadcasting, publishing (including newspapers and magazines), and the music industry reflect and promote the producer's culture. Advertisements using these media also convey values that have an impact on culture. A noted French film producer, expressing concerns over foreign domination of cultural industries, maintained that