Cultural Protectionism in the European Union Essay -- national film ind

Since the 1980s the European Union (EU) is pursuing a more liberal trade policy in its multilateral trade negotiations. This liberal approach is the result of the change in company preferences in favour of free trade. The change in business preferences also made politicians to support trade liberalisation. (Young, 2007) While the EU is a lead supporter when it comes to traditional trade policy, it is rather reluctant regarding the liberalisation in other trade areas. The European audiovisual industry is a good example to demonstrate the EU’s protectionist approach. Though there are countries, above all the United States, who are in contrary to the EU, great supporters of the full liberalisation of audiovisual industry. The US government seeks for liberalization of audiovisual services within the framework of General Agreement on Trade in Services (GATS), while other countries, such as the member states of the European Union see the US and the World Trade Organization (WTO) as a threat to their film industry and national culture. In this paper within the European audiovisual sector I will focus on the European film industry. The main question of the paper: why does the EU pursue protectionist policy in case of its audiovisual sector, when in general it is expected to follow liberal trade policy? In order to explain the EU’s behaviour, Alasdair R. Young’s (2007) division of trade policy will be used as theoretical framework. Young differentiates three aspects of trade policy: traditional trade policy, commercial policy, social trade policy. Traditional trade policy includes tariffs and other quantitative measures, occurring at the border in order to discriminate foreign goods. With the rise of export orientation of European manuf... ... WTO members’ commitment in audiovisual services very low. (WTO, 2009) None of the EU member states, nor any other European countries made commitments to liberalize its audiovisual sector, but they all asked for exemption from the MFN principle. On the other side only two countries with considerable economy opted for the liberalisation: US and New Zealand. (Puppis, 2008) What would happen with the film industry in case of the liberalization of audiovisual sector? Why the EU and the member states are so resistant in this matter? Without the MFN exemption, or with more extended liberalization would lead to increase commercialization, even bigger US/ Hollywood share in the European cinemas and televisions. Under the MFN principle the European Union and its member states would not be allowed to set up programs like MEDIA, or quotas for European content. (Puppis, 2008)