Canada expected to stand firm on maintaining 'cultural carveout' in NAFTA

The Canadian government is expected to seek to maintain a carveout in NAFTA that excludes Canada's “cultural industries” from obligations under the agreement, according to informed sources and analysts following the issue. Eliminating that carveout is a priority of the U.S. services sector and U.S. rightholders. The carveout allows the Canadian government to subsidize or otherwise favor Canadian content over U.S. content as a way of preserving Canadian culture. “Cultural industries,” as defined by NAFTA Article 2107, include those involving...