[Federal Register Volume 61, Number 30 (Tuesday, February 13, 1996)]
[Notices]
[Pages 5603-5604]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-3172]



=======================================================================
-----------------------------------------------------------------------

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. 301-98]


Section 304 Determinations: Certain Discriminatory Canadian 
Communications Practices

AGENCY: Office of the United States Trade Representative.

ACTION: Notice of determinations.

-----------------------------------------------------------------------

SUMMARY: The United States Trade Representative (USTR) has determined 

[[Page 5604]]
pursuant to section 304(a)(1)(A)(ii) of the Trade Act of 1974 (19 
U.S.C. 2414(a)(1)(A)(ii)) that certain acts, policies and practices of 
the Government of Canada with respect to the granting or termination of 
authorizations for U.S.-owned programming services to be distributed in 
Canada via cable carriage deny market access for such services and are 
unreasonable and discriminatory and constitute a burden or restriction 
on U.S. commerce. The USTR has further determined pursuant to section 
304(a)(1)(B) of the Trade Act that, as commercial negotiations to 
restore the market access previously denied a U.S. programming service 
are ongoing and the Government of Canada has taken no subsequent action 
to terminate the authorizations of other U.S.-owned programming 
services in Canada, the appropriate action at this time is to direct 
the Section 301 Committee to recommend the implementation of 
appropriate responsive action pursuant to section 301 should market 
access not be restored to the U.S.-owned programming service and to 
monitor pursuant to section 306 Canadian Government measures with 
respect to the restoration of this market access and with respect to 
the granting or termination of authorizations for other U.S.-owned 
programming services in Canada.

DATES: The sections 304 determinations were made and the investigation 
was terminated on February 6, 1996.

ADDRESSES: Office of the United States Trade Representative, 600 17th 
Street NW., Washington, DC 20508.

FOR FURTHER INFORMATION CONTACT: Claude Burcky, Director for Canadian 
Affairs, (202) 395-3412, or William Kane, Assistant General Counsel, 
(202) 395-7305.

SUPPLEMENTARY INFORMATION: On February 6, 1995, the USTR initiated an 
investigation under section 302(a) of the Trade Act in response to a 
petition filed on December 23, 1994, by Country Music Television (CMT) 
pursuant to Section 302(a) of the Trade Act to determine whether 
certain acts, policies or practices of the Government of Canada 
regarding the authorization for distribution via cable carriage of 
U.S.-owned programming services that have resulted in the denial of 
market access for U.S.-owned programming services to distribute in 
Canada via cable carriage and in the termination of the authorization 
of a U.S.-owned programming service are unreasonable or discriminatory 
and burden or restrict U.S. commerce. By Federal Register notice dated 
February 10, 1995 (60 FR 8101), the USTR requested public comment on 
the issues raised in the investigation, including on (i) the acts, 
policies and practices that are the subject of the investigation, (ii) 
the amount of burden or restriction on U.S. commerce caused by them, 
(iii) the determinations required under section 304 of the Trade Act, 
and (iv) appropriate action under Section 301 which could be taken in 
response. Numerous comments were received in response.
    Pursuant to section 303(a) of the Trade Act, the USTR requested 
consultations with the Government of Canada concerning the issues under 
investigation. On July 22, 1995, CMT and the Canadian network, New 
Country Network (NCN), reached a tentative agreement to form a single 
Canadian country music network, to be called CMT: Country Music 
Television (Canada), which if it were to become final and be approved 
by the Canadian Government, could result in the restoration of CMT's 
market access and resolution of this dispute. To date the parties have 
not reached a final agreement.
    Section 304(a)(1)(A) of the Trade Act requires the USTR to 
determine whether any act, policy or practice of the Government of 
Canada described in section 301(b)(1) exists. If that determination is 
affirmative, the USTR must determine, subject to the specific direction 
of the President, what action, if any, is appropriate in response to 
any such act, policy or practice.

Reasons for Determinations

(1) Canada's Acts, Policies and Practices

    Having concluded the investigation undertaken pursuant to section 
302 of the Trade Act and on the basis of public comments received and 
the consultations with the Government of Canada, affected U.S. firms 
and the relevant private sector advisory committees, the USTR has 
determined pursuant to section 304(a)(1)(A)(ii) of the Trade Act that 
certain acts, policies and practices of the Government of Canada with 
respect to the granting or termination of authorizations for U.S.-owned 
programming services to be distributed in Canada via cable carriage 
deny market access for such services and are unreasonable and 
discriminatory and constitute a burden or restriction on U.S. commerce. 
Pursuant to the policy set forth in Public Notice CRTC 1984-81 of the 
Canadian Radio-television and Telecommunications Commission (CRTC), the 
CRTC may terminate authorizations of non-Canadian-owned programming 
services which, in the CRTC's opinion, could be considered either 
totally or partially competitive with existing or newly-available 
Canadian-owned programming services. On June 6, 1994, following a 
regulatory proceeding to consider new applications for authority to 
distribute programs over cable television in Canada, the CRTC at the 
request of NCN revoked CMT's authorization to be distributed in Canada 
once NCN began distribution. NCN began distribution on January 1, 1995 
and, at that time, CMT was evicted from the Canadian market.

(2) U.S. Action

    As negotiations to restore the market access previously denied a 
U.S. programming service are ongoing and the Government of Canada has 
taken no subsequent action to terminate the authorizations of other 
U.S.-owned programming services in Canada, the USTR has further 
determined pursuant to section 304(a)(1)(B) of the Trade Act that the 
appropriate action at this time is to direct the Section 301 Committee 
to recommend the implementation of appropriate responsive action 
pursuant to section 301 should market access not be restored to the 
U.S.-owned programming service and to monitor pursuant to section 306 
Canadian Government measures with respect to the restoration of this 
market access and with respect to the granting or termination of 
authorizations for other U.S.-owned programming services in Canada.
Irving A. Williamson,
Chairman, Section 301 Committee.
[FR Doc. 96-3172 Filed 2-12-96; 8:45 am]
BILLING CODE 3190-01-M