(Ottawa)The Council of Canadians is urging Cabinet to reject a compromise package on split-run magazines reportedly reached by Canadian and U.S. trade officials in a high-level meeting yesterday. The deal would allow unlimited access to Canada for some U.S. magazines and boost the ceiling for U.S. ownership of Canadian magazines, now limited to 25 percent.

The deal would gut Bill C-55, now working its way through the Senate, and would put the entire Canadian magazine industry at risk. Further, because loosening the foreign ownership provisions would entail revamping Section 19 of the Income Tax Act, Canadian newspapers and books would be placed at risk as well.

"We have been saying all along that NAFTA and the World Trade Organization (WTO) contain within them the tools to take down Canadian cultural protections," said Maude Barlow, the Council's National Chairperson. "While some members of the Liberal government and Cabinet bravely attempt to shore up environmental, social and cultural policy, others are moving ahead to boost the powers of these trade agreements. They can't have it both ways. The writing is on the wall for every aspect of Canadian cultural policy."

The Council points out that at the upcoming December "Millennium Round" of the WTO in Seattle, the U.S. will up the ante once again on culture. Charlene Barshefsky, U.S. Trade Representative, is adamant to put an end to cultural protections and subsidies all over the world and open up the global market to its vast entertainment industry that includes giant telecommunications companies, movie studios, television networks, cable companies, the Internet, books, magazines, video, cable and satellite systems, mega-theatre productions, music recording and distribution, and theme parks.

Resistance to this cultural onslaught is growing in many countries around the world and Canada's resistance has set a bad example. Barsefsky has said that Canada's loss on the magazines issue would be the opening to take out its other cultural policies. On the table at the WTO are broadcasting, telecommunications, including Digital and the Internet, and copyright law.

"If the Chretien government gives in on this issue, Canadians can kiss their cultural heritage goodbye" said Barlow. "We urge the government to say no to this "compromise" that truly compromises our entire cultural sector."

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