United States and Canada Resolve Dispute Over Periodicals
On May 26, 1999, the United States and Canada announced that they have resolved a dispute over Canadian regulation of the magazine publishing industry and averted further U.S. action in the World Trade Organization, NAFTA or under U.S. law. Under the agreement, Canada will permit U.S. magazines to fill up to 12 percent of their total ad space with ads aimed primarily at the Canadian market. The limit will increase over three years to a total of 18 percent. Canada has also agreed to eliminate a nationality requirement that prevent a business tax deduction for advertising in foreign-owned publications. These changes follow a 1997 WTO decision that found the Canadian magazine policies to be illegal under the GATT. The USTR press release and background paper is available here.