With 100% tariffs on 'all movies made outside US', Trump shifts target to digitally delivered services, Pg15.

Key Highlights:

• US President Donald Trump announced a potential 100% tariff on movies made outside the US.
• The proposed tariff targets digitally delivered services, impacting film distribution via platforms like Netflix, Amazon Prime, and others.
• Experts suggest this move could violate the General Agreement on Trade in Services (GATS) and existing WTO agreements.
• A report by the Centre for WTO Studies warns of potential retaliatory measures by other countries.

Detailed Insights:

• The shift from physical film prints to Digital Cinema Packages (DCPs) has transformed cross-border film delivery into a digitally delivered service.
• The tariff could impact major content-producing countries like India, China, and South Korea, which have their own global streaming platforms.
• The US has historically advocated for a moratorium on customs duties on electronic transmissions, a principle now potentially contradicted.
• Imposing tariffs on digitally delivered services could lead other countries to adopt similar measures, affecting free and open markets.
• The US has a binding commitment under GATS to provide market access and national treatment to cross-border delivery of audio-visual services.
• A tariff on foreign content would be discriminatory and violate existing US GATS commitments.

Key Concepts Involved:

• Tariff: A tax imposed on imported goods or services.
• GATS (General Agreement on Trade in Services): A WTO agreement governing trade in services.
• Digital Cinema Package (DCP): The digital format used for distributing films to theaters.