Showbiz backs NAFTA, wins Canada muscle
The entertainment industry's embrace of the free trade accord came in the same week NAFTA legislation was submitted to Congress by the Clinton administration. Lingo added to the bill gives record and movie industry execs reason to crow: The provision would provide for U.S. retaliation if it's determined the Canadian government seeks to curb unfettered entry of U.S.-produced movies, sound recordings or TV broadcasts.
The provision could be of huge benefit to the U.S. entertainment industry if newly elected Canadian Prime Minister Jean Chretien launches a European Community-like attack on Hollywood's "cultural dominance."
The entertainment industry staked out its pro-NAFTA position in a letter to Capitol Hill from the Intl. Intellectual Property Alliance, a coalition of copyright-based trade organizations.
"NAFTA is a key step on the ladder to U.S. economic growth and competitiveness," the alliance missive said. "Its defeat would be a disaster for U.S. trade policy, U.S. policy toward Latin America and for the world economy. We urge support for NAFTA."
Members of IIPA include the Motion Picture Assn. of America, the Recording Industry Assn. of America, the Assn. of AmericanPublishers, the National Music Publishers' Assn., the American Film Marketing Assn., the Business Software Alliance, the Information Technology Assn. of America and the Computer and Business Manufacturers Assn.
The House of Representatives will vote on NAFTA in mid-November in what is expected to be a close vote. Though some NAFTA opponents are predicting the trade accord will be defeated handily, the White House is waging an intense campaign to convert lawmakers to the pro-NAFTA side.
In related news, IIPA released a study showing that copyright industries contributed $ 206.6 billion to the U.S. economy in 1991, the last year in which figures were available.
The study also found that in the recessionary years of 1989-91, the average annual growth rate of copyright industries was 1.6%, while the rest of the U.S. economy was declining by 0.2%.
Job growth in copyright averaged 3% from 1987-91, compared to growth of just 0.97% in all other U.S. industries, according to the report.
In testimony Wednesday before the House subcommittee on trade, IIPA executive director Eric Smith urged Congress to ensure that improvements are made in the world trade talks to benefit copyright industries. Smith said the so-called "Dunkel text" of the General Agreement on Tariffs and Trade must be revised to allow greater compensation of U.S. movie and record producers in EC countries that have enacted levies on the sale of blank tapes.
In a separate development, Ross Perot accepted a White House challenge to debate NAFTA with Vice President Al Gore before the Nov. 17 congressional vote. Perot called the challenge "a desperate move."
Perot, on Capitol Hill, quickly proposed three debates, one in Tampa on Sunday, one in Detroit next Wednesday and finally in Seattle on Nov. 14, shortly before the scheduled vote.
Gore said he was "delighted" that Perot had accepted his offer. The vice president said he was agreeable to more than one debate and confident that the time, place and number of debates could be worked out.
