In conformity with Taiwan’s entry to WTO, Taiwan cancels ratio of domestic films and subsidy imposed on foreign movies

Source:Liberty Times 11/01/2001
Translated by Corrina Wu

　In order to comply with Taiwan’s entry to WTO, the Legislative Yuan passed the “Draft of Amendments to the Motion Picture Law” (hereinafter referred to as “Draft”) after third reading yesterday and deleted the requirement related to the project ratio of domestic films and levy of subsidy on foreign movies.  However, in order to prevent domestic films from suffering damage, the Draft also prescribes that the central competent authority shall take necessary remedial measures.

　Article 11 of the pre-amended Motion Picture Law provided that movie exhibitors must project domestic films according to the ratio prescribed by the central competent authority.  Article 40 of the pre-amended Motion Picture Law provided the requirement related to levy of domestic film subsidy on foreign movies.  However, since the aforementioned two clauses are contradictory to the national treatment guaranteed in the General Agreement of Trade in Services (“GATS”), the two clauses were deleted from the “Draft”.  However, according to the GATS, member countries shall take emergency defensive measures based on the non-discriminate principle to prevent the industry from suffering the damage which has been caused by or might be caused by the increase in import services.