“On September 4, 2007, we received a petition under
Section 301 of the Trade Act of 1974 on the issue of Canadian film
subsidies. The petition argued that Canadian subsidies on the filming of
U.S.-produced television shows and theatrical films within Canada were inconsistent with Canada’s
obligations under the WTO Agreement on Subsidies and Countervailing Measures,
and requested that the USTR immediately initiate a WTO dispute on these
issues. 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. Ambassador Schwab has accepted this
recommendation, and has decided not to initiate a Section 301 investigation in
response to the petition.”
