U.s. -canadian Magazine Dispute

Canada as a nation has been striving to characterize itself as more ?Canadian? for decades. This has included numerous struggles and events such as protests, bans, and the creation of the Massey Commission, to encourage national development in the arts, and support major companies like the Canadian Broadcasting Corporation (CBC) and National Film Board (NFB). However, this has not been an easy task for the Canadian government, as major influences from below the border (the United States) have been captivating the Canadian audiences by large. American media has had a momentous revolutionizing effect on Canada, even through efforts made to define Canada with its own cultural identity.

Canada’s media industries have played a huge role in the Canadian culture. The Canadian culture has integrated with other countries forming a successful globalization. Many countries including the United States have contributed to the success in Canada’s media industries. The success of globalization between all of the countries was predicted by Marshall McLuhan and ever since his prediction, the world can be depicted as a global village. The global village can be viewed as a tool, a tool that is bringing the world together, despite the different languages, locations, and diverse cultures. With new technologies being developed more often, the communication skills between different countries are very successful. Canada’s diversity in their media and policies has established a global village with people around the world, allowing them to relate to the Canadian culture.

Since the country’s conception in 1867, Canada has lived in the shadow of it’s southerly neighbour, the United States of America. Through the years, what started out as a country with very distinct culture has morphed and become Americanized. Historically speaking, American influence has had a great economical impact on Canada. Speaking about the Americanization of Canada, Pierre Trudeau, former Prime Minister of Canada, has said, “Americans should never underestimate the constant pressure on Canada which the mere presence of the United states has produced…” This pressure has changed the way Canadians live and conduct business. This pressure has Americanized the Canadian economy. American culture has a very far reaching effect on Canada with many trickle down effects. Americanization of the Canadian economy has lead to the American control of the Canada’s corporate structure, Canadian dependence on American capital, turned the Canadian economy into a mirror image of the American economy, and has led to loss of

Due the the geographic reason, Canadian culture is often seen as similar to the United States. For instance, language, political beliefs, food, religion and social well-being. I agree that most part of the American popular culture is being adopted by most Canadians because of the powerful media such as movies, films and books are produced by the American. Massey-Leveque, who is a chancellor of the University of Toronto, argued that “ Canada is cultural dependent in its ‘uncritical use of American education philosophy”(as cited in Gasher, M., Skinner, D., & Lorimer,R., 2012,p.196). Hollywood, one of the biggest and most famous film corporations in the world, is devastating part of the Canadian culture. The reason is that by multi-billion

The success of Canadian soldiers had given them sense of national pride and identity. In the soaring 1920's, all types of entertainment and leisure were developed, the two major forms of entertainment being film and radio. American radio companies diminished Canada’s sense of social autonomy because they were far too big for Canadian radio stations to compete with. As a result, many Canadians tuned into American stations for entertainment and their news. Furthermore, the film industry was also dominated by the Americans and Canadian-made films could not compete with productions from the big studios in the United States.

The 1920s “roared” for technology in Canada. New technological development was happening very fast in Canada. The first piece of evidence for this can be found in the radio. The 1920s in Canada saw the first commercial radio station in the world set up in Montreal. Over the rest of the decade, Canadians saw radio stations set up across the country, as well as new forms of media entertainment, and cheaper and easier versions of the radio. This made the radio very popular with Canadians, and allowed them to have easier access to information and entertainment. In addition, few Canadians had telephones in 1920, but by 1929 three out of four families had one which shows how it improved communication and made it easier to connect with other people.

Today Canada and the United States are major trading partners, allies, and two neighboring countries with a long history of cooperation with each other. But is it possible for Canada to protect its independence and culture living next door to the country so powerful and rich as the United States. Since the Canadian confederation, Canada started developing relations with the U.S. As the years passed by, Canada began to relay on the United States in the national defense. Many Canadians think that the military, political and economical dependence would not make a difference to their daily life. But today more then even Canadian culture is affected by the American influence. Media, American artists,

For example, most magazines focus on American celebrities and American trends. People’s magazine is very popular, with 3 527 541 copies paid and verified. It’s an American magazine that talks about celebrity gossip. Reader’s Digest is also quite popular, with 4 288 529 copies paid and verified. It’s a general interest family based magazine.1 There is also Twist, a magazine popular among teens. It teaches them about all the different beauty and fashion trends that are currently popular.2 However, these magazines almost never touch upon what’s happening in Canada, as people assume that what’s going on in the USA must also be happening in Canada. While that’s not completely true, events happening in the USA will likely affect Canada in one way or another. Pierre Elliotte Trudeau even stated, “Living next to the United States in some way like sleeping with an elephant. No matter how friendly and even tempered the beast: one is affected by every twitch and grunt.”3 Finally, Canada covers a lot of what’s happening in the USA but the states don’t do the same with Canada. As Canadian author Margaret Atwood said, “The boarder separating the two countries is like a one-way mirror through which Canadians can see the United States but Americans can’t see

Having lived in Canada when I was 8 before the US-Canada magazine dispute occurred, I found myself thoroughly engrossed in Canadian culture. It seemed a perfect culture, built to protect domestic interests and despite the potential division between countries, created a safe environment where people were unafraid to leave doors unlocked, due to almost no crime. The peaceful and respectful nature of most Canadians isn’t just a fluke, the country was designed this way, and one of the primary influencers of this strategy is the media. Watching the news in Canada, the focus is positive, the message is positive, there is no forced fear of sense of doom as we see here in the US. Life is about being sustainable, not so much a struggle to the top of the food chain, but working together, instead of separating and segregating groups. That is except the region of French Quebec; however, Quebec is like a whole new country in itself.

Tremblay uses some significant points to establish his argument and prove his position and opinion. The first issue he raises is the presence of American programs on Quebec television, where he mentions that about one third of the total television supply is of foreign origin mainly American, which is not so bad but he does reveal that the presence of foreign products is much higher in Canada compared to the United States. He also states that during the evenings, between six o’clock and midnight, the situation is even better because “the proportion of Canadian content attains 73%”6. He mentions that the French-language television stations for the most part, respect the “Commission’s regulatory quota fixing a 60% minimum for Canadian content during prime time”7. The part that Canadians should be concerned with is the area of entertainment, particularly drama programming such as series, films and cartoons. He indicates that the percentage of drama programming broadcast produced locally by francophone Quebecois television stations decreased from 16.9% in 1982, to less than 10% in 1989, which is quite a significant plunge. An entertainment sector that is really vulnerable to American culture is the production of films. In 1990, Tremblay states that according to The Social Communication Board, compared to 55% American films, there were

In order to balance out the money coming in and out tariffs were raised to fifty percent. The inability to buy and sell sufficient amount of products caused imports to fall by fifty-five percent and exports by twenty-five percent. ² The effect on Canada was immense because one third of their Gross National Income came from exports. Socially the country was changing.

Secondly, closer ties to America helped us form a culture we know to this day. American media was playing through Canadian televisions and radios. In the late 1950s after Canadian’s pride and joy was aggravated by the “Avro Arrow”, Canadian aviation talent went to America and helped with the man landing on the moon. This influenced Hollywood to dedicate movies and T.V shows. Some of Canadian actresses and actors stared in the playing of Hollywood shows and movies, along with American actors and actresses. Canadians started watching more television which influenced Canadian buying behaviours, clothes, behaviours, food etc. American culture had slightly influenced Canadian culture through media. Also America has always been Canada’s number one trading partner. Gordon Morton McGregor, who was head of the Ford Motor Company of Canada Ltd., set up the largest automotive car company in Candaians. This car company gave many Canadians jobs since they were manufactured by Canadians however the parts that came in for the automobiles were from America. American goods were being transferred to Canada so they can manufacture cars. The Americans have a culture that is recognized as being luxuries and rich. By America trading valuable goods with Canada we gained recognition as Canada being a wealthy and luxuries country. Canada and America

Canada is considered to be a cultural mosaic, where all cultures are embraced opposed to a melting pot where it is expected to adopt one culture. Government regulated media is more favourable than policies based off of self-regulated solutions when addressing Canada’s media industries and cultural needs. Canadians place importance on national identity and without government regulated policies, the content in the media would have minimal Canadian information. According to the Aird Commission, when Canada’s media was operating through private enterprise, many stations expressed conflicting content, however, with state regulated media, broadcasting allows the nation to have a unified vocation. One unified message being sent to the nations citizens is more beneficial than multiple broadcasts on differentiated and insignificant information.

In McKay report to Expert Panel on Securities Regulation, it has been 10 years since the discussion about improvement on Canadian Regulatory Framework that indicate changes have to be done. Major and minor obstacles have been debated since which calls for action of changes. In this research I will try to explain how and why changes are needed for securities regulation in Canada in order to bring our capital market compete-able with the rest of the world while in the same time provides high securities for all the stakeholders and backed by the federal government.

Q.2: To what extent do you think the government of Canada was pressured to seek to protect its market because of the financial interests of the Canadian magazine industry?