Statement from Gretchen Hamel, Deputy Assistant USTR for Public and Media Affairs, regarding a Section 301 Petition on Canadian Film Subsidies:

“On September 4, 2007, we received a petition under Section 301 of the Trade Act of 1974 on the issue of Canadian film subsidies.  The petition argued that Canadian subsidies on the filming of U.S.-produced television shows and theatrical films within Canada were inconsistent with Canada’s obligations under the WTO Agreement on Subsidies and Countervailing Measures, and requested that the USTR immediately initiate a WTO dispute on these issues.   As provided under USTR regulations, the petition was reviewed by an interagency committee of trade and economic experts.  Based on a thorough review of the economic data, other facts, and legal arguments set out in the petition, the interagency committee unanimously recommended that the USTR not accept the petition because a dispute based on the information and arguments set out in the petition would not be effective in addressing the Canadian subsidies.   Ambassador Schwab has accepted this recommendation, and has decided not to initiate a Section 301 investigation in response to the petition.”