Canada bracing for retaliation over magazine legislation
Last Updated: Tuesday, March 9, 1999 | 4:53 PM ET
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Marchi was referring to the current dispute over split-run magazines. The U.S. is threatening retaliation over Canada's proposed magazine legislation. Bill C-55 would bar Canadian advertisers from buying ads in Canadian editions of foreign publications known as split-runs. Also, the magazines could face fines for accepting Canadian ads.
Marchi said he hopes U.S. officials will refrain from publishing an official list of trade sanctions as retaliation over Bill C-55, as it already has in its trade war with the European Union over bananas.
Speaking to reporters outside a cabinet meeting, Marchi said "We certainly told them that there's no need to publish a list while talks were going on, and I would hope that reasonable minds will come to reasonable conclusions, rather than starting a war on another front."
Canadian and U.S. officials are scheduled to meet within the next week to continue talks on the bill.
But on Monday the Liberal government invoked closure on debate over Bill C-55. That means the debate must stop and the bill could be passed by Friday and then sent on to the Senate.
That's got some people worried the U.S. is preparing to announce its official list of trade sanctions. It has already threatened to target the textile, lumber and steel industries.
The government argues split-runs are unfair competition because they cost publishers very little to produce.
The Reform Party is in opposition to the bill. Reform say the bill threatens Canadian jobs, free trade and $1 billion in goods that flow daily between Canada and the U.S.
Reformers also say the bill deprives Canadian advertisers of choice.
The government argues that the bill does not take away choice because it doesn't prohibit foreign magazines from being sold in Canada. They will still occupy 85 per cent of the average Canadian newsstand.
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