How do you reconcile free trade with the protection of cultural diversity? Free trade in goods and services means that a country will necessarily open itself to foreign influences. Just look at the impact of American fast-food restaurants, hotels, and large retail outlets on the American landscape and particularly on small-town America. Now imagine the influence of American companies and American culture in foreign countries. Consider the long-term impact of American music and film on the indigenous culture of a foreign country. Despite these impacts, free trade agreements mandate the opening of local markets to foreign goods, services, and advertising, including music and film. The French, as well as French-Canadians, are notorious for trying to manipulate trade rules to preserve their French language and French culture. Examples might include limits on foreign advertising, television programming, or films. Consider the Convention on the Protection and Promotion of the Diversity of Cultural Expressions, which has been ratified or approved by 69 nations and entered into force in 2007. The Convention states:

Nations may adopt measures aimed at protecting and promoting the diversity of cultural expressions within their territory. Such measures may include (a) regulatory measures aimed at protecting and promoting diversity of cultural expressions; (b) measures that, in an appropriate manner, provide opportunities for domestic cultural activities, goods, and services among all those available within the national territory for the creation, production, dissemination, distribution, and enjoyment of such domestic cultural activities, goods, and services, including provisions relating to the language used for such activities, goods, and services.

In addition, a country may take “all appropriate measures to protect and preserve cultural expressions”that are “at risk of extinction, under serious threat, or otherwise in need of urgent safeguarding.”

The United States is not a party to the Convention. In response to the Convention, the U.S. State Department stated, “The United States is a multicultural society that values diversity…Governments deciding what citizens can read, hear, or see denies individuals the opportunity to make independent choices about what they value.”

Reconcile the terms of this convention with principles of free trade. What will be the effecton trade in audiovisual products? How would American industry respond?