Canadian Magazine Dispute Case Study

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Following two issues arose in order to protect local cultures that globalization impacted.
The Canadian magazine dispute
The conflict started as to preserve the Canadian culture related to selling the magazines in Canada which turned to trade dispute instead. Basically, decades ago, there was easy to distinguish between the domestic and foreign magazines. Magazines printed inside the Canada are treated as domestic unlike printed outside the border of Canada are treated as foreign. Along with this, it was also easy to apply tariff at the port of entry for foreign magazines.

As far as globalization has gone crossing the border line, makes tough to differentiate between domestic or foreign. In addition, the trade agreements have the limited …show more content…

To exempt from the new tax, split-run editions should include at least 80% of the Canadian content. This results in the rise of American magazines prices. This became the great disadvantage for American split-run magazines. Because of this, the United States set up WTO to dispute settlement of the discriminating tax rule. Also, WTO ruled in favor of US. Moreover, After WTO ruling, the United States and Canada are acting against each other. In the meantime, US threatened to take action against Canadian steel, wood products, textiles etc. Finally, an agreement done, that prevents trade crisis where Canada removed most of its barriers in split-run magazines. Now, only 11% of the magazines sold in Canada are domestic, remaining 89% are foreign precisely …show more content…

Furthermore, it may be good if the market share of Canadian magazines would be even much more than 11% so that many Canadians would get the chance to read Canadian content. On the other hand, magazines are not only the source to preserve the Canadian culture. The government should explore that as well. The government also think, what happens if Canadians prefer to read the American magazines.

4. And, if Canadians seem to prefer buying American magazines, shouldn't they be allowed to "vote" with their purchasing habits?
Yes, this is the good alternate. In fact, I fully agree with it, first of all, the government should try to find out why Canadians prefer to buy American magazines in place of domestic Canadian magazines. Additionally, it's a good idea to allow Canadians to vote with their purchasing habits. If still, they prefer American magazines then the government should be in favor of the Canadians.

5. Is it fair to levy extra taxes against foreign magazines—which have the effect of forcing Canadian purchasers of foreign magazines to subsidize local

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