Cultural exception (French: l’exception culturelle) is a concept introduced by France in General Agreement on Tariffs and Trade (GATT) negotiations in 1993.[1] Some countries had voiced their concerns during the final negotiations of the Uruguay Round that implementation of the GATT principles on cultural goods and services "would undermine their cultural specificity (and unique status), in favour of their commercial aspects".[2]
The purpose of Cultural exception is to treat cultural goods and services differently than other traded goods and services because of the intrinsic differences of such goods and services. Many countries defend the fact that cultural goods and services "encompass values, identity and meanings that go beyond their strictly commercial value".[3] It notably allowed France to maintain tariffs and quotas to protect its cultural market from other nation's cultural products, most notably American films and television. South Korean policy in favor of its movie industry is another example of how cultural exception is used to protect the audiovisual market[4].
Cultural exception as such does not really exist. First the debate concerned mainly the audiovisual products. Secondly, in the WTO liberalization process, every country decides which sectors it will deregulate. Audiovisual services is one of the sectors where the number of WTO members with commitments is the lowest (30, as of 31 January 2009)[5] (Source: WTO) [2]
In France in 2005, 65% of its film products were American imports, compared to 90% American imports in other European film markets.[6]
Cultural exception has been gradually replaced by the more consensual concept of cultural diversity [3] as shows the adoption in October 2005, of UNESCO's Convention on the Protection and Promotion of the Diversity of Cultural Expressions. Sponsored by France and Canada, the convention was passed 185-2, with four nations abstaining from voting. The notable naysayers were the United States and Israel.
The UNESCO Convention on the Protection and Promotion of the Diversity of Cultural Expressions is a legally binding international agreement that supports Member-States' wills to assert their right in applying cultural policies and measures that exclude cultural goods and services from international trade agreements.[7]
The United States claims that cultural exception is a form of protectionism that harms global trade and that the UNESCO Convention deals with such protectionism rather than cultural diversity. In addition, it claims that the UNESCO Convention allows for oppressive governments to suppress minority cultural voices. The film industry and other cultural industries in the United States are also against the concept of cultural exception, as it harms their export market, and have lobbied the United States to take its current position against cultural exception.