Volume III No. 5

A publication of the National Association of Theatre Owners

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Industry Coalition For Free Trade Formed
In February I had the pleasure of speaking to the United Drive-In Theatre NATO has joined the Motion Picture Association of America, the Recording Industry Association of America, other leading entertainment-industry associations and more than a dozen major entertainment companies in the formation of the Entertainment Industry Coalition for Free Trade (EIC). Accompanied by Ambassador Robert B. Zoellick of the Office of the U.S. Trade Representative, leading members of Congress, and ambassadors from the embassies of Chile and Singapore, we announced our coalition at the U.S. Capitol in a March 13 press conference.

The purpose of the coalition is to support the efforts of the U.S. government in its negotiations of free trade agreements with other nations, and to see that those agreements receive approval by Congress. Specifically, the Bush administration’s trade agenda provides a powerful vehicle for addressing the challenge of piracy, as well as the removal of trade barriers that inhibit the profitability of the entertainment industry internationally. Those trade barriers include tariffs on movies and equipment imported into foreign countries, as well as screen quotas and other restrictions on exhibition.

The coalition’s first two projects serve as good examples of these themes. The United States has negotiated free trade agreements with Chile and Singapore. Congress will now consider legislation to approve and implement those accords. If implemented, the agreements would help prevent movie piracy by enforcing the obligations of certain international treaties on intellectual property protection, and by emulating U.S. law regarding online copyright protection. The agreements would also result in stronger criminal enforcement of anti-piracy laws by the governments of Chile and Singapore, thereby decreasing movie piracy in those jurisdictions, as well as deterring pirates from using those territories as a launching point for the traffic of pirated goods.

In addition to piracy enforcement, the agreements with Chile and Singapore would open those markets further to American movies, as well as the equipment necessary to build modern cinemas. Under the agreements, more than 85 percent of two-way trade in consumer and industrial products becomes tariff-free immediately, with most remaining tariffs eliminated within four years. This means zero tariffs on movies, for example.

In addition to the MPAA, RIAA and NATO, the Coalition includes: the American Film Marketing Association, a worldwide trade group of the independent film and television industry; The Interactive Digital Software Association, a U.S. group of companies that make video games; and the Television Association of Programmers Latin America, a trade group of pan-regional subscription programming suppliers. Many individual music, movie and other entertainment industry companies also support the coalition. Our group will lobby members of Congress to support free trade agreements that support our goals, beginning with the Chile and Singapore negotiations.

The members of NATO’s International Committee discussed this coalition at our meeting in Las Vegas during ShoWest, and unanimously endorsed the association’s active support of the coalition’s activities.

 

 

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