Friday, 14 June 2013

EU-U.S.: French 'Exception' & Trade Deal

Today, EU member states are expected to give the green light on talks for a wide-reaching trans-Atlantic free-trade agreement. But French demands for films and culture to be exempted from negotiations could stall or derail the plan.

It's the country that brought us "Amelie" and silver screen greats like Catherine Deneuve and Gerard Depardieu. But its insistence on its "cultural exception" could derail the planned start to talks to create the world's largest free-trade area between the European Union and the United States.

EU trade ministers are expected to finalize the scope of negotiations at a meeting in Brussels today. A unanimous agreement is required in order for talks to get the green light at next week's G-8 summit in Northern Ireland. But speaking to members of parliament on Wednesday, French Prime Minister Jean-Marc Ayrault said his government would exercise its veto if audiovisual media like the Internet, video on demand, television and film aren't removed as negotiating areas. "France will oppose the opening of the negotiations if culture and cultural industries are not protected, are not excluded," Ayrault told parliament.

The French fear Hollywood dominance of the European film industry, despite a European Commission compromise that would ensure that the current system of subsidies in France and many other countries could remain in place. It would also protect French radio quotas that 40 percent of music played on French radio stations be in the national language and that the same percentage of programs on television be French productions. The French position is supported by a number of leading actors from the country, including actress Berenice Bejo of the Oscar-winning film "The Artist," as well as the European Parliament.

Germany, which had previously sided with France, switched its position earlier this week, abandoning its objections. The EU has has proposed setting "concrete redlines" to protect European policies promoting culture. But negotiators representing Britain in the trade agreement have said they might reject talks if the European Commission caves to French demands.

One of the key demands in entering into a trade agreement has been that conditions not be placed prior to negotiations, and US negotiators are already warning that France could be opening a Pandora's box. The French demands would destroy the possibility of a broad free-trade agreement.

"If a mandate is released that constrains the negotiators -- whatever you want to call it, a carve-out, a red line, an exception -- if it's not a clean mandate, it will increase the pressure on our side to do the same," William Kennard, the US ambassador to the EU. "There's a quid pro quo here, and there will be a price to pay."

The US is also unhappy with the compromise circulated last week by Ireland, which currently holds the rotating EU presidency. "The mechanisms existing at the level of either the European Union or the member states for the promotion of the European cultural works shall not be affected," the document reads. "All forms of subsidies to the audio-visual sector shall be excluded from any commitments." However, the compromise would not exclude the audio-visual sector from talks -- it would simply set redlines ensuring that cultural subsidies and quotas could be preserved.

Trade between the United States and the European Union accounts for 50 percent of global gross domestic product and secures an estimated 15 million jobs. Keen to reap the harvest of a trade agreement, which they view as a cheap economic stimulus package, both London and Berlin are pressuring France to abandon its position.

In Europe, politicians are hoping for a reasonable French position in the end. They believe Paris shouldn't concentrate on principles but rather on the outcome of talks.

In France a number of people on the French side are worried that Internet giants like Google, YouTube and others will play an increasingly important role in the cultural sector, that they will pay fewer taxes and that they will become competitors who don't contribute to financing culture. And that would be unacceptable to a country which places such a heavy emphasis on its culture.

By Guylain Gustave Moke
Political Analyst/Writer
Investigative Journalist
World Affairs Analyst

Photo-Credit: Wikipedia: French Prime Minister Jean-Marc Ayrault