Tyler Cowen points to an article on the U.S.’s tentative, so-called “free trade agreement” with Australia:
The proposed deal caps the amount of local [Australian] content at existing levels of 55 per cent on free-to-air commercial television and 25 per cent for commercial radio, and at 10 per cent on pay TV.
If the government reduces these content levels, they cannot be raised again.The deal also prevents the government from regulating local content levels for new media without consulting the US, which can challenge any proposed changes.
Cowen seems to think that Australia is engaging in some sort of cultural protectionism, but the language above seems to suggest (probably misleadingly) that the US may have the power to force Australian content off the air, whether Australians like it or not.
Regardless, can someone remind me of what telling other countries what is to be broadcast on their TV networks has to do with establishing “free trade”?
