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  • CCPA's National Office has moved! May 11, 2018
      The week of May 1st, the Canadian Centre for Policy Alternatives' National Office moved to 141 Laurier Ave W, Suite 1000, Ottawa ON, K1P 5J2. Please note that our phone, fax and general e-mail will remain the same: Telephone: 613-563-1341 | Fax: 613-233-1458 | Email: ccpa@policyalternatives.ca  
    Canadian Centre for Policy Alternatives
  • What are Canada’s energy options in a carbon-constrained world? May 1, 2018
    Canada faces some very difficult choices in maintaining energy security while meeting emissions reduction targets.  A new study by veteran earth scientist David Hughes—published through the Corporate Mapping Project, the Canadian Centre for Policy Alternatives and the Parkland Institute—is a comprehensive assessment of Canada’s energy systems in light of the need to maintain energy security and […]
    Canadian Centre for Policy Alternatives
  • The 2018 Living Wage for Metro Vancouver April 25, 2018
    The cost of raising a family in British Columbia increased slightly from 2017 to 2018. A $20.91 hourly wage is needed to cover the costs of raising a family in Metro Vancouver, up from $20.61 per hour in 2017 due to soaring housing costs. This is the hourly wage that two working parents with two young children […]
    Canadian Centre for Policy Alternatives
  • Mobility pricing must be fair and equitable for all April 12, 2018
    As Metro Vancouver’s population has grown, so have its traffic congestion problems. Whether it’s a long wait to cross a bridge or get on a bus, everyone can relate to the additional time and stress caused by a transportation system under strain. Mobility pricing is seen as a solution to Metro Vancouver’s transportation challenges with […]
    Canadian Centre for Policy Alternatives
  • Budget 2018: The Most Disappointing Budget Ever March 14, 2018
    Premier Pallister’s Trump-esque statement that budget 2018 was going to be the “best budget ever” has fallen a bit flat. Instead of a bold plan to deal with climate change, poverty and our crumbling infrastructure, we are presented with two alarmist scenarios to justify further tax cuts and a lack of decisive action: the recent […]
    Canadian Centre for Policy Alternatives
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The Progressive Economics Forum

Canada’s trade deficit in cultural services

With the Conservatives’ “Born in the USA” Copyright Act now tabled, the fur is flying. A year after leaping to the defence of the oil and gas industry, Terrance Corcoran has got Big US Media’s back (does Terry ever stand up for anyone but the wealthy and powerful?). As always, Michael Giest, who knows way more about copyright than yours truly, has assembled an excellent legal and policy analysis of the Canadian DMCA (here and here).

So I went over to Statscan to find out what our trade balance with the US looks like in this area. It is not surprising that Canada runs a rather hefty trade deficit with the US in cultural services (table 2). Overall, it is a deficit of $300 million, although in one category, film production, we enjoy a surplus due to all of the movies and TV shows shot in Canada. But in the category of interest to the DMCA, “copyrights and related services (royalties)”, we had imports of $879 million in 2005 compared to exports of only $146 million, for a trade deficit of $733 million (ie. this amount leaves Canada and goes into the coffers of Big Media).

Back in 1996, imports for this copyrights category were only $180 million and exports $54 million, for a deficit of $126 million. So the royalties flowing south have grown rapidly, as has our deficit in this sector. Which makes one wonder what all the fuss is all about. The US industry has thrived in Canada over the past decade, with profits up almost five-fold. As capitalists we should expect them to want even more, but that does not mean we should hand it over on a silver platter without anything in return.

The implication of the Canadian DMCA is that it will likely increase that trade deficit by strengthening the rights of copyright owners at the expense of users, shifting a delicate balance that has been struck over the years between private profit and public interest. And with some considerable irony, too, since the Tories are ostensibly about free trade and small government, whereas this legislation is about protecting monopoly rights of foreigners while expanding the powers of the state to invade privacy on behalf of those interests.

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