Case Study: The Canadian Magazine Dispute

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The Canadian Magazine Dispute was mainly in between the Canadian and United States government. The main cause was that the Canadian government was taking discriminatory measures against United States companies who were functioning in Canada in the magazine industry. The government of Canada had an aim of protecting its domestic magazine market and also culture. To do so, they used different measures including tax barriers for magazines printed outside of the country. This measure worked until technological advancement changed everything. Foreign companies like Time Warner (which was the first) started to split-run their companies from outside. They send all the content through satellite and the magazine was printed in Canada. This brought a new problem to the government of Canada as the previous law cannot protect the local magazines any more. So they tried to introduce new measures by adding a significant amount of new tax on all advertising revenue for split-run publications. But, defining split-run publications was also another problem. The government ruled that a publisher would have to produce a magazine that contained at least 80 percent Canadian content in order to avoid the tax. These decision brought in a trade dispute between Canada and the United States. The United States was even considering taking retaliatory measures against Canadian trade goods. But, after some discussion both parties reached a resolution and Canada …show more content…
If you were the Canadian government, trying to protect the domestic magazine market, what kind of criteria would you establish to distinguish between a split-run and a domestic magazine?
To distinguish between a split-run and a domestic magazine is very difficult. You can come up with a lot of scenarios, which can actually overlap with each other. But, the best I can come up with was to have a criteria that:
 The company should be based in Canada, meaning it is headquartered in Canada and all its major activities are led from

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