WTO: A Threat to European Films?

Abstract

Whereas the European film industry would not survive without state support, the US industry is competitive on the free market. The question, however, whether the European film industry should be allowed to continue its state intervention requires demonstrating that this is necessary due to a market failure or for the maintenance of cultural diversity. This paper first analyses the WTO legal framework, with regards to films; then asks whether there is a difference between European and US films and finally discusses the importance of European films to the integration process in Europe.

Keywords: European films, Cultural exception, cultural quotas, WTO, GATS, GATT, protectionism, art house films, globalisation, anti-competition, market failure, cultural diversity, cultural plurality

JEL Classification: K21, K33