WTO Rules against Chinese Import Restrictions on Foreign Media

September 10, 2009

A WTO panel has sided with the US in the complaint brought against China regarding the Chinese restrictions on importing and distributing of foreign books, music, and movies. Some considered this a “Hollywood vs. China” case.

China requires copyrighted publications and audiovisual products – books, journals, video games, music, DVDs and the like – to be imported and distributed via a handful of state-approved or state-run middlemen. US producers of such products have complained that these restrictions – along with rampant piracy – severely hamper their ability to make money in the world’s fastest-growing major market.

800px-HollywoodSignThe panel ruling, which was made available public on 12 August, concluded that the restrictions violated commitments China had made when it joined the WTO in 2001. The restrictions also violated ‘national treatment’ requirements in WTO rules under which countries cannot privilege domestic goods and services over imported ones, it found.

China’s commerce ministry was disappointed with the ruling; however private media companies are happy with the decision as they anticipate more import business in the future.

The panel did not rule on China’s controversial censorship, instead focusing on the import restrictions.

To read the complete (and quite interesting) article, visit the ICTSD – yes, quickly becoming one of my favorite international trade news sources!

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