Still time to enter KRW awards

The extended entry deadline for the Kenneth R. Wilson awards, the awards program for Canada's business-to-business magazine sector, is Friday, February 13. The KRWs (as the competition is most often known) is open to all open to all business, trade, professional and farm print and online publications and recognizes editorial and design achievement. Five winners in each of the 20 categories receive media recognition and cash prizes of $1,000 and $500 are presented to gold and silver winners. Entrants do not have to be members of the Canadian Business Press which administers the awards.

Magazines Canada to allow business-to-business magazine membership

Trade magazines are in -- if they want to be. The annual general meeting of Magazines Canada, the country's consumer magazine association, has passed a board recommendation that changes the bylaws to allow business-to-business titles to join.

This opens the door to Rogers Publishing to bring its stable of trade magazines -- which recently left the Canadian Business Press -- to join Magazines Canada. It also opens the door to the kind of "big tent" approach to represent all magazine interests under one umbrella, something that has been written about frequently here (see related posts below).

(It is also not entirely coincidental that Ian Locks, the recently retired President of the British Periodical Publishers Association, made a presentation today at the MagNet conference, outlining the 20-year development of an all-encompassing association that not only represents b-to-b but also custom publishers and has alliances with online and directory publishers.)

Related posts:

• Segal to CBP Board: the merger train is leaving...
• Magazines Canada board recommends allowing trade magazines as members
• Rogers pullout costs CBP 20% of membership revenue
• CBP Prez says trade publishing association should stay independent
• Rogers b-to-b titles to pull out of Canadian Business Press
• One magazine organization
  

Magazine and newspaper trade deficit with U.S.has grown 18% since 2000

Canada's balance of trade deficit with the United States in newpapers and periodicals (magazines are not broken out separately) has grown by 18% since 2000, according to a report released by Statistics Canada.

Imports of newspapers and periodicals were $982 million in 2000 and had increased to $1.07 billion in 2006, an increase of almost 10%.

Exports of newspapers and periodicals were $243 million in 2000 and fell to $204 million in 2006, a drop of 16%.

Statistics Canada reports that the country's deficit in the trade of all culture goods - mostly books, periodicals and films - grew last year to its largest level since 1999.

Written and published works represented 3/4 of every dollar spent on U.S. cultural imports in 2006.

Canada imported $3.9 billion worth of culture goods from the world, a 3.2 per cent drop from 2005.

At the same time, exports fell 12.7 per cent to $2.1 billion, the third consecutive decline.

The trade deficit rose to $1.8 billion from $1.7 billion in 2005.

Most of the deficit was with the United States, with China running a distant second.

The deficit with the United States grew by $236 million to nearly $1.2 billion, mainly because of a sharp drop in exports.

Writing and published works represented nearly three-quarters (73%) of all the culture goods imported into Canada in 2006.

Imports of books, newspapers and periodicals and other printed matter grew $25.8 million in 2006 to $2.8 billion. Items such as technical, scientific and professional books, text books for school, art and pictorial books, journals, periodicals and cards are included in this culture category.

The trade in culture goods were largely to the United States, China, France and the United Kingdom, says the data:

• Canadians imported mainly books and newspapers from the United States. For every $10 of culture goods Canadians imported from the United States, $7.61 were spent on writing and published works, $0.85 on film and video, and $0.58 on advertising. The remainder was spread among sound recordings, photography and original art.

• Canada's exports to the United States were more diversified. For every $10 of culture goods the United States bought from Canada, $3.80 were spent on books, newspapers and periodicals and other printed material, $2.68 on film and video, and $1.67 on advertising. Photography, sound recordings and visual arts accounted for the rest.

• For the last six years, imports of culture goods from China have been the second largest, after the United States. In 2006, imports from China increased 5.9% to $295 million, while exports to China rose 3.9% to $13.8 million. Almost half of Canada's imports of culture goods from China were printed books.

• In 2006, exports to the United Kingdom dropped by almost $31 million from 2005. The value of exports of video, other printed material, newspapers and periodicals, and photography recorded the largest decline. Exports of culture goods to the United Kingdom nevertheless remained the second largest for the seventh consecutive year. Canada exported mainly books and videos to the United Kingdom.

• Exports to France were the third largest, books accounting for 60% of them.

For the full tables, showing all cultural goods and a breakdown by type, go here.

NAFTA decision may be good news for the PAP, and for magazines

[This post has been updated*]There may be significant long-term benefits for the magazine industry growing out of a decision announced Monday by a NAFTA arbitration tribunal in Washington. It concerned the case of UPS v. Government of Canada initiated under NAFTA’s Chapter 11. Part of the tribunal's decision has what may be precedent-setting implications for the Publications Assistance Program (PAP).

(Of course, in international litigation, especially when wading in the deep waters of the North American Free Trade Agreement, it is always a good idea to step cautiously.)

A release from Minister of International Trade David Emerson and Lawrence Cannon, Minister of Transport,Infrastructure and Communities and a brief backgrounder are available from the Foreign Affairs and International Trade Canada website. The full text of the decision is not yet available, but the particulars are interesting because it appears to say that government measures like the Publications Assistance Program are exempt from NAFTA under its disputed "cultural exemption".

NAFTA Chapter 11 provides rights and protections for investors and investments in member countries. Companies that believe these investor rights have been violated can take the matter before an impartial arbitration tribunal.

UPS had initiated a challenge in January 2000, claiming not less than US$ 160 million in damages. It alleged that Canada Post was benefiting from undue privileges as a government-owned corporation, that Canada Post got preferential treatment from Canada Customs, that its pricing policies gave it an unfair advantage and that Canada Post unfairly favoured its subsidiary (and direct UPS competitor) Purolator.

Of particular interest to the magazine industry was UPS's concurrent claim that the Publications Assistance Program of the Department of Canadian Heritage is contrary to Canada’s national treatment obligation because it requires publishers to deliver their publications through Canada Post to obtain the subsidy.

The Canadian Heritage Publications Assistance Program was upheld as a measure designed to assist cultural industries and therefore fell within the scope of NAFTA’s cultural exemption. In any event, the tribunal found there was no violation of national treatment.

The tribunal's final decision said that Canada had met its NAFTA obligations and dismissed UPS’s claim for damages. It ordered the parties to bear their own costs and share equally the cost of the arbitration.

*A story in the news site Reclaim the Media quotes Moya Green, the president and CEO of Canada Post saying:

"For years, UPS has made allegations of unfair competition in Canada, and in every instance the allegations have been rejected by regulatory agencies and independent experts. And now the international tribunal has ruled that the allegations have no foundation."

Deborah Bourque of the Canadian Union of Postal Workers said:

"We are very happy that the tribunal rejected UPS's complaint but that doesn't mean we think NAFTA works. NAFTA allowed UPS to put public postal service and jobs on trial -- a secret trial. The public and workers should have the right to be heard when their jobs or public services are threatened."