Public
FTAA.soc/thm/inf/16
Novermber 4, 2003

The Motion Picture Association welcomes this opportunity to submit recommendations to the FTAA Civil Society Committee meeting on services. MPA represents seven of the world’s largest audiovisual companies that produce and distribute films, television programming and home video entertainment to global audiences. MPAA member companies are Buena Vista International, Inc. (A Walt Disney Company), Twentieth Century Fox International Corporation, Metro-Goldwyn-Mayer Studios Inc., Paramount Pictures Corporation, Columbia Tri-Star Film Distributors International, Universal International Films, and Warner Bros. Pictures International, a division of Warner Bros. Pictures Inc. Executive Summary

Despite the official consensus of participants in the FTAA negotiation process that “all the Service and Sub-service sectors should be liberalized…” some continue to advocate the exclusion of the audiovisual sector from the FTAA. MPA recognizes the important cultural value of the audiovisual sector as well as the role of trade in enhancing cultural diversity. The audiovisual sector is also an important economic force, creating jobs, promoting tourism, and helping to pay for the build-out of expensive e-commerce networks. The second Draft FTAA text contains a number of alternative approaches for scheduling commitments, or making reservations or listing non-conforming measure. Regardless of which approach is agreed, all provide sufficient flexibility to allow each country to continue to employ and adopt a range of government measures to promote cultural diversity, while also allowing the creative industries throughout the Hemisphere to benefit from increased certainty and growth in trade

The countries of the Western Hemisphere share a tradition of cultural diversity. Both indigenous and immigrant populations in countries have contributed to rich and varied cultural traditions within and among the countries of the Hemisphere. These diverse cultural traditions and values are reflected in the film and television industries throughout the Hemisphere. The US film industry joins other films industries throughout the Hemisphere in celebrating this cultural diversity. Within this diverse offering of creative expression, there is room for a wide range of creative content: TV products for local markets and for export markets, regional films and universal films, art films and action films.

MPA’s commitment to cultural diversity is reflected in the MPA Film Production and Screenwriting Workshop Program has provided a strong foundation for hundreds of participants in Workshops in Buenos Aires, São Paulo, Brasília, Mexico City, Porto Alegre and Rio de Janeiro. Workshops and seminars, organized by the MPA Regional Office in Rio de Janeiro, are co-sponsored by prominent Latin American government, academic and private institutions. Participants in MPA Workshops have gone on to active work in many areas of film and television writing, and have authored or collaborated on a number of feature films in Mexico, Brazil and Argentina.

The production and distribution decisions of MPA member companies also reflect this commitment to cultural diversity. MPA member companies have produced or co-produced and distributed films and TV programs in Argentina, Brazil, Chile, Mexico and Venezuela. Many of these films were among the “top ten” in Box Office. Well-known examples include: “Sex, Shame and Tears” from Mexico, distributed by Fox; and “Nine Queens,” from Argentina, co-produced and distributed by Buena Vista International. Sony Pictures Entertainment’s local production unit in Mexico launched and distributed the biggest local film of all times in that market: “El Crimen del Padre Amaro,” which brought more than 5.2 million people to the theatres. SPE also co-produced and distributed the biggest local film in Brazil in recent history, “Carandiru,” which attracted more than 4.6 million people and continues to play in theatres throughout Brazil. Other projects currently in the pipeline include a Universal Pictures co-production of a major documentary on Pelé and a feature film based on a Gabriel Garcia Marques book, “La Mala Hora.”

MPA-affiliated companies produce, or co-produce with local broadcasters a variety of TV programming telefilms, game shows, variety shows, and documentaries for distribution over local broadcast and pay TV networks throughout the Hemisphere. For example, the Disney Channel produces and uplinks four programs from Argentina for regional distribution, tailored to audiences in Argentina, Brazil and Mexico with local presenters and styles. In co-production with local production company in Brazil, Fox produced three documentaries for international distribution. Program formats are also licensed to local broadcasters for their local production.

Films, television programming and home video entertainment are highly traded. Trade finances the production of new films and enables diversity. Audiovisual production services are traded when film companies produce their films in another country, often showcasing unique landscapes or urban environments that help stimulate the tourism trade. Cultural diversity and trade are mutually reinforcing.

Carving culture out of trade agreements invites anarchy and conflict in international relations. Trade rules are necessary to resolve the inevitable disagreements in a world where audiovisual goods and services are highly traded. Carving culture out of trade agreements does not resolve the inevitable disputes that will arise.

Although outside the scope of this workshop, MPA also supports establishment in the FTAA of standards to ensure the technologically neutral treatment of digital products and of rules to protect copyrighted works in the digital age. Piracy is the biggest threat faced by all creative industries and an issue that unites creators worldwide. The FTAA rules need to provide the tools to safeguard the rights of creators in this fight.

In conclusion, MPA believes the FTAA should promote trade and foster growth in audiovisual services based on agreed rules, while taking into account countries’ individual concerns to promote their domestic culture and creative expression. A balance can be found that does not undermine anyone’s essential interests. The FTAA negotiations should ensure coverage of all service and sub-service sectors, including audiovisual services and other services containing cultural content.

Steve Solot
Senior Vice-President
Latin American Operations
Motion Picture Association (MPA)
Rua Mexico 31/603
Rio de Janeiro, RJ
Brazil, 20031-144
Tel: (55-21) 2240-8340
Fax: (55-21) 2524-4416
Email: sasolot@attglobal.net
Website: http://www.mpaa.org/mpa-al/

Member companies of the MPA: