Runaway Production - Other U.S. Attempts To End Runaway Production

Other U.S. Attempts To End Runaway Production

The movement of industry jobs to other jurisdictions has led to the formation of non-profit U.S. industry groups, such as the Film and Television Action Committee (FTAC) as well as other groups such as the Directors Guild of America (DGA), the Screen Actors Guild (SAG) and others, who have been lobbying state and federal governments to introduce American legislation and counter-incentive programs. Several studies have concluded that foreign government subsidies for film and television production put American film industry workers and companies at an extreme disadvantage.

FTAC believes that foreign government subsidies such as those Canada uses to support its film industry labor are in violation of the WTO rules restricting or prohibiting the use of government subsidies to prop up previously undeveloped industries (such as the Canadian film industry). On September 4, 2007, the FTAC filed a Section 301 complaint with the United States Trade Representative (USTR). In the petition, the FTAC argued subsidies offered by Canada to lure production and filming of U.S.-produced television shows and motion pictures were inconsistent with Canada's obligations under the WTO. Six weeks later, October 19, 2007, the USTR rejected FTAC's petition. In a press release, the USTR's office stated:

"As provided under USTR regulations, the petition was reviewed by an interagency committee of trade and economic experts. Based on a thorough review of the economic data, other facts, and legal arguments set out in the petition, the interagency committee unanimously recommended that the USTR not accept the petition because a dispute based on the information and arguments set out in the petition would not be effective in addressing the Canadian subsidies."